What AARP Life Insurance Is

AARP offers life insurance policies underwritten by New York Life Insurance Company. These are not free — you pay a monthly premium — and they are not unique to AARP members, though AARP negotiates group rates that are often lower than what you would find on your own. The policies come in two main types: term life (coverage for a set number of years) and whole life (coverage for your entire lifetime, with a cash value component).

AARP life insurance is designed for people 50 and older. You do not need to be an AARP member to buy it, though membership may lower your rates. The underwriting process is simplified compared to traditional life insurance — you answer health questions on the process, but there is no medical exam required for most policies under certain age and coverage limits.

Key Takeaways

  • AARP life insurance is underwritten by New York Life and requires monthly premiums; it is not a benefit or entitlement program.
  • Two main types are available: term life (temporary coverage, lower cost) and whole life (permanent coverage, builds cash value, higher cost).
  • No medical exam is required for most policies if you are under age 80 and stay within coverage limits, though you must answer health questions.
  • Rates depend on your age, health history, coverage amount, and policy type; you can get a quote online or by phone without committing to buy.
  • You can cancel anytime, and whole life policies have a surrender value you can withdraw, though it may be less than premiums paid.

Term Life vs. Whole Life: Which Type Costs Less

Term life insurance covers you for a specific period — typically 10, 15, or 20 years. If you die during that term, your beneficiary receives the death benefit. If the term ends and you are still alive, coverage stops unless you renew. Term life premiums are much lower than whole life because the insurance company is betting you will outlive the term.

Whole life insurance covers you for your entire life, no matter how long you live. Part of your premium goes into a cash value account that grows over time. You can borrow against this cash value or withdraw it, though doing so reduces the death benefit. Whole life premiums are typically three to five times higher than term premiums for the same coverage amount, because the insurer will eventually pay out a death benefit.

For most people over 50, term life makes sense if you need to cover a specific debt (a mortgage, a loan to a child) or replace income for a spouse who depends on you. Whole life makes sense if you want permanent coverage and do not mind the higher cost, or if you want the cash value as a savings vehicle.

How Much Coverage Costs and What Affects Your Rate

AARP does not publish a rate table online, so you must request a quote to see actual prices. Rates vary based on your age, sex, health history, the coverage amount you want, and the policy type. A 60-year-old in good health will pay far less than an 80-year-old with heart disease, and a $100,000 policy will cost less than a $500,000 policy.

You can request a quote through AARP's website or by calling 1-800-624-2773. You will be asked basic health questions (do you smoke, have you had cancer, are you on medications for high blood pressure) but will not need to schedule a medical exam. The quote is free and does not commit you to anything.

Once you buy a policy, your rate is locked in — it will not increase as you age, as long as you keep paying premiums. If you let the policy lapse and want to restart it later, you will be quoted at your current age and health status, which will be more expensive.

The process Process and Medical Underwriting

The process is done online or by phone. You answer questions about your health, medications, hospitalizations, and surgeries. You also disclose whether you smoke and provide basic information about your occupation and hobbies (some high-risk occupations or activities can affect rates).

For applicants under age 80 and coverage amounts below certain limits (usually $250,000 to $500,000 depending on age), no medical exam is required. For higher coverage amounts or applicants over 80, New York Life may order a phone interview with a nurse or request medical records from your doctor. This process typically takes one to two weeks.

If you are denied coverage, you can ask why and may be able to reapply later if your health improves. If you are approved but at a higher rate than you expected, you can decline and shop elsewhere — the quote does not lock you in.

What Happens to Your Money If You Cancel

If you have a term life policy and cancel it, you get nothing back — you have straightforward paid for the coverage you used. This is normal and expected.

If you have a whole life policy and cancel it, you receive the surrender value, which is the cash value in your account minus any surrender charges. In the first few years, this value is often much less than the premiums you paid, because the insurance company deducts administrative costs and commissions. After 10 to 15 years, the cash value typically exceeds what you paid in. You can also borrow against the cash value while keeping the policy active, though borrowed amounts reduce the death benefit.

If you stop paying premiums on a whole life policy, the insurance company will use the cash value to pay the premiums automatically for a while, keeping the policy in force with a reduced death benefit. Eventually, if the cash value runs out, the policy lapses.

How to File a Claim When Someone Dies

The person named as beneficiary (or the estate, if no beneficiary is named) must contact New York Life with a copy of the death certificate. New York Life will ask for the policy number and may request additional documents like a certified copy of the death certificate or proof of the beneficiary's identity.

The company typically pays the death benefit within 30 to 60 days of receiving a complete claim, though this can vary. The beneficiary can receive the money as a lump sum, as monthly payments, or left in an interest-bearing account with the insurance company. These options should be discussed with New York Life when filing the claim.

AARP Membership and Discounts

You do not have to be an AARP member to buy AARP life insurance. However, AARP members often receive lower rates than non-members. If you are not yet a member, the discount may offset the cost of membership ($16 per year for a standard membership).

AARP also offers other insurance products through New York Life, including auto, home, and long-term care insurance. Bundling multiple policies may lower your overall cost, though you should compare quotes from other insurers before assuming AARP is the cheapest option.

Frequently Asked Questions

Do I need a medical exam to get AARP life insurance?

No medical exam is required for most applicants under age 80 with coverage amounts below $250,000 to $500,000 (the limit varies by age). You answer health questions on the process, and New York Life reviews your answers. For higher coverage amounts or older applicants, a phone interview with a nurse or medical records review may be requested.

Can I get AARP life insurance if I have a pre-existing condition?

Yes, but your rate will be higher. New York Life considers your health history when setting your premium. If you have diabetes, heart disease, or cancer, you will likely pay more than someone in perfect health, but you can still be approved. The best way to know is to request a quote — it is free and does not commit you.

What is the difference between AARP life insurance and life insurance from my bank or employer?

AARP life insurance is a standalone product you buy directly from New York Life. Employer life insurance is usually free or low-cost but ends when you leave the job. Bank life insurance is often expensive and limited in coverage. AARP policies are portable (you keep them if you move or change jobs) and typically cheaper than bank policies, though not always cheaper than employer coverage.

Can I convert my term life policy to whole life later?

Many AARP term life policies include a conversion option that lets you switch to whole life without a new medical exam, usually within a set window (often 10 to 15 years). Check your policy documents or call New York Life at 1-800-624-2773 to confirm whether your policy has this option and what the important date is.

What happens to my policy if I move to another state?

Your policy stays in force. New York Life is licensed to sell insurance in all 50 states, so moving does not affect your coverage or premiums. You do not need to notify the company unless your mailing address changes.