What AARP life insurance is and who sells it

AARP does not sell life insurance itself. Instead, AARP has partnered with New York Life Insurance Company to offer term life and whole life policies to AARP members age 50 and older. You buy the policy directly from New York Life, not from AARP, though AARP members often receive discounted rates compared to what non-members pay for the same coverage.

The policies available through this partnership are standard life insurance products — you pay a monthly or annual premium, and if you die while the policy is in force, the insurance company pays a death benefit to the person or people you name as beneficiaries. There is no medical exam required for some policies, which is why this option appeals to older adults who may have health conditions that make traditional life insurance harder to obtain.

Because this is a partnership between AARP and New York Life, you will see AARP's name in marketing materials and on the AARP website, but New York Life is the actual insurance company handling your policy, collecting your premiums, and paying claims.

Key Takeaways

  • AARP-branded life insurance is sold by New York Life Insurance Company and is open to AARP members age 50 and older.
  • No medical exam is required for some policies, though the insurance company will ask health questions on the process.
  • Rates vary based on your age, health, the amount of coverage you want, and the type of policy (term or whole life).
  • You can compare quotes from New York Life and other insurers before deciding, since life insurance is not exclusive to AARP members.
  • The death benefit is paid to your named beneficiaries and is generally not taxed as income.

Term life versus whole life through AARP

Term life insurance covers you for a set number of years — typically 10, 15, or 20 years. If you die during that term, your beneficiaries receive the death benefit. If the term ends and you are still alive, the coverage stops and you receive nothing. Term life is usually the least expensive option because the insurance company is only taking on risk for a limited time.

Whole life insurance covers you for your entire life, as long as you keep paying premiums. Part of your premium goes toward the death benefit, and part builds up as cash value inside the policy — money you can borrow against or withdraw while you are alive. Whole life costs significantly more than term life, but you never lose coverage as long as you pay, and you have access to that cash value.

Which one makes sense depends on what you need the insurance for. If you want to cover a specific debt or replace income for a set number of years while your children are young, term life is usually the right fit. If you want coverage that lasts your whole life and you are willing to pay more for it, whole life may be the choice. Many people use a combination of both.

How much coverage costs and what affects your rate

Life insurance premiums depend on several factors: your age, your health, how much death benefit you want, the type of policy, and whether you use tobacco. A 60-year-old in good health will pay less than a 75-year-old with heart disease for the same coverage. A $100,000 death benefit costs less than a $500,000 death benefit. Term life costs less than whole life.

Because rates vary widely based on these factors, there is no single price to quote. The only way to know what you would pay is to get a quote from New York Life or another insurance company. AARP members often receive a discount on New York Life policies compared to the standard rate, but the discount percentage is not published in advance.

You can request a quote through the AARP website or by calling New York Life directly. The process usually takes a few minutes and does not commit you to anything. Getting quotes from other insurers — such as State Farm, Mutual of Omaha, or Banner Life — lets you compare what different companies would charge for similar coverage.

The process process and medical underwriting

When you explore for AARP life insurance through New York Life, you fill out an process with health questions. Some policies are issued without a medical exam, which speeds up the process. For other policies or higher death benefits, the insurance company may require a phone interview, blood work, or an in-person exam.

The underwriting process — the company's review of your health and risk — typically takes one to two weeks. During that time, New York Life may contact your doctors to verify information you provided, or ask you follow-up questions about your medical history. Once underwriting is complete, you will receive a decision: approved, approved with conditions, or denied.

If you are approved, your policy becomes active once you pay the first premium. You can usually pay monthly by automatic bank withdrawal or credit card, or pay annually. Your policy documents will spell out exactly what is covered, what is not, and what happens if you miss a payment.

What is not covered and when claims are denied

Life insurance policies have exclusions — situations where the insurance company will not pay the death benefit. The most common exclusion is suicide within the first two years of the policy (called the suicide clause). If you die by suicide after two years, the benefit is paid. If you die by suicide within the first two years, the insurance company returns your premiums to your beneficiaries but does not pay the death benefit.

Other exclusions may explore if you die while committing a crime, or if you misrepresent your health or age on the process. If the insurance company discovers you lied about smoking status, a major health condition, or your age, they can deny the claim or reduce the benefit. This is why it is important to answer all questions on the process honestly and completely.

If you have questions about what your specific policy covers or does not cover, your policy documents contain the full details. You can also contact New York Life directly to ask about exclusions or limitations.

Comparing AARP life insurance to other options

AARP-branded life insurance is one option, but it is not the only one. Other major insurers offer term and whole life policies to people over 50, and some do not require a medical exam. Companies like Mutual of Omaha, Banner Life, State Farm, and Transamerica all sell life insurance to older adults and may offer competitive rates.

The advantage of the AARP partnership is that AARP members may receive a discount and the process process is straightforward. The disadvantage is that you are limited to what New York Life offers. If you shop around, you may find better rates, more flexible policy options, or faster underwriting elsewhere.

Getting quotes from at least two or three insurers takes about 15 minutes and costs nothing. This gives you a real sense of what your coverage would cost and what different companies are willing to offer based on your age and health. Many people find that shopping around saves them hundreds of dollars a year.

How to get a quote and next steps

To get a quote for AARP life insurance, visit the AARP website and look for the life insurance section, or call New York Life's AARP department directly. You will need to provide your age, general health information, and the amount of death benefit you are interested in. The quote is free and does not obligate you to buy.

If you decide to move forward, you will complete a full process either online or over the phone. New York Life will then begin the underwriting process. You can ask questions at any point — about what coverage includes, how much it costs, or what happens if your health changes.

Before you commit to any policy, take time to think about why you need life insurance and how much coverage makes sense. If you have a mortgage, outstanding debts, or dependents who rely on your income, life insurance can help protect them. If you have substantial savings and no dependents, you may not need it at all. A financial advisor or your doctor can help you think through what is right for your situation.

Frequently Asked Questions

Do I have to be an AARP member to buy this life insurance?

Yes, you must be an AARP member to purchase life insurance through the AARP and New York Life partnership. However, you can buy life insurance from other companies without being an AARP member. If you are not an AARP member, compare quotes from other insurers to see what rates you would receive.

Can I get life insurance if I have a pre-existing condition like diabetes or heart disease?

Yes, but your premium will be higher than someone without those conditions. Some policies are issued without a medical exam, though the process will ask detailed health questions. New York Life will review your medical history and may request records from your doctor. Being honest about your health on the process is essential — misrepresenting a condition can result in a denied claim later.

What happens if I stop paying my premiums?

If you miss a premium payment, most policies have a grace period — usually 30 days — during which you can pay without losing coverage. If you do not pay within the grace period, the policy lapses and coverage ends. With whole life policies, you may be able to use the cash value to keep the policy in force, but this varies by policy. Check your policy documents or call New York Life to understand your options.

Can I cancel the policy if I change my mind?

Yes. Most life insurance policies have a free look period — usually 10 to 14 days after you receive the policy — during which you can cancel and receive a full refund of premiums. After that period, you can still cancel at any time, but you will not receive a refund. With whole life, you can withdraw the cash value, though this reduces or eliminates the death benefit.

Is the death benefit taxed as income to my beneficiaries?

No. Life insurance death benefits are generally not subject to federal income tax. Your beneficiaries receive the full amount tax-free. However, if the policy is part of a very large estate, federal estate taxes may explore — this is rare and depends on the total value of everything you own. A tax professional can advise you on your specific situation.