NOTE: We are not AARP, we are not associated with AARP, this is just a review.
AARP is a large US organization for Americans who are over about age 50. Because of this, it probably seems natural that they would market white-label burial insurance policies. Of course, the policies come from New York Life Insurance, and a person does not have to belong to AARP to purchase burial insurance from New York Life.
Understanding AARP Burial Insurance Choices
There are basic kinds of life insurance for seniors offered by the organization to its members to use as burial plans:
- Guaranteed acceptance whole life
- Simplified issue whole life
Note that these are all no exam insurance policies, so you do not have to submit to a life insurance physical to apply.
This might be an attractive option for older folks because the face amounts range from $5,000 to $15,000 so rates should be affordable. However, you need to read the fine print. The benefits may stay level, but the premiums do not so that the company could raise the premiums every five years. A fifty-year-old applicant should expect to have higher premiums by the time he turns 55, 65, etc. Also, this policy may end at age 80, and this leaves the insured person with no coverage. This is a good alternative for people who may need a higher amount of coverage for a few years and expect not to need it later.
Guaranteed Issue Whole Life
This is what people think of when they think of buying burial life insurance. There are no annoying health questions to ask, so it is straightforward to apply for. This is permanent coverage, so you don’t have to worry about the policy expiring or premiums increasing during your entire life. We are not certain if AARP burial insurance plans offer this type of plan, but we offer many other companies that do.
However, with any guaranteed issue policy, there are a couple of things to be aware of:
- There will be a waiting period of up to 24 months before the full face value is payable, and before that, beneficiaries may only get their premiums refunded or get a percentage of the death benefit.
- Premiums will always be somewhat higher than they will be for policies with applications that ask a few health questions.
Simplified Issue Whole Life
This may be a better option for people who want a burial insurance plan. The application does ask a few health questions, but these are only meant to disqualify people with very serious medical conditions, and they don’t disqualify most relatively active people.
These are things to know about this kind of burial insurance plan from AARP:
- Most Policies have a 24 month waiting period
- Premiums can increase over time, so be sure to read the fine print
- Coverage may also expire at a certain age
Which Burial Insurance Plan is Best for You And Your Parents?
For most seniors, we would probably consider the last option. The applicant will need to qualify by supplying the right answer to a few questions, but after that, the insured person and their beneficiaries can expect to enjoy the same premiums and benefits for the rest of the insured person’s life.
However, we also suggest shopping around between a handful of quality insurers before making a decision. While both New York Life and AARP are respected, their might be another top life insurance company in your area that offers fixed rates for life, and the policy may be lifetime.
Use our simple quote form to compare a variety of good burial life insurance companies from the comfort of your own home or office. In some cases, AARP burial insurance may not be the best option; we encourage people to compare not just one company, but several.