AARP's Life Insurance Options

AARP itself does not underwrite or sell life insurance directly. Instead, AARP has partnered with insurance companies—primarily New York Life and other carriers—to offer term life and whole life insurance products to AARP members. You purchase the policy from the insurance company, not from AARP, though AARP's endorsement and group membership may affect the rates you see.

The policies available through AARP are marketed as group plans, which typically means lower premiums than buying individual life insurance on the open market. However, "group" here refers to the AARP membership group, not to your employer. You still explore as an individual, and the insurance company still underestimates your health and age.

AARP also offers final expense insurance (sometimes called burial or funeral insurance), which is a smaller whole life policy designed to cover end-of-life costs rather than replace income for a family.

Key Takeaways

  • AARP partners with insurance companies to offer term and whole life policies to members, but AARP does not issue the policies itself.
  • Group membership through AARP may lower your premium compared to buying individual life insurance, but you still undergo medical underwriting.
  • Final expense insurance through AARP is whole life coverage with lower death benefits, intended to cover funeral and burial costs.
  • You can compare AARP's rates against quotes from other insurers before deciding, since the "group" discount is not always the lowest price available.
  • Policies are issued by the insurance company partner, so claims and policy questions go to them, not to AARP.

How AARP Life Insurance Rates Work

AARP negotiates rates with its insurance partners on behalf of members. Because AARP has millions of members, the insurance company can spread risk across a large pool, which typically lowers the per-person cost. That discount is passed to you as an AARP member.

Your actual premium still depends on your age, health history, smoking status, and the amount of coverage you choose. You will need to answer health questions and may be asked to provide medical records or take a medical exam, depending on the coverage amount. Younger applicants and those in good health generally pay less.

AARP advertises these policies as available to members as young as 50, though some products may be offered to younger members. The older you are when you explore, the higher your premium will be. If you have a serious health condition, you may be declined or offered coverage at a higher rate.

Term Life vs. Whole Life Through AARP

Term life insurance covers you for a set 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, the coverage stops and you receive nothing. Term life is usually the cheapest option per month.

Whole life insurance covers you for your entire life, as long as you pay the premiums. It also builds a cash value over time—money you can borrow against or withdraw. Whole life premiums are much higher than term premiums for the same death benefit, but the policy does not expire.

AARP offers both types. Term life makes sense if you want to cover a specific period—such as until your mortgage is paid off or your children finish school. Whole life makes sense if you want permanent coverage and are willing to pay more for it, or if you want the cash value component.

Final Expense Insurance Through AARP

AARP's final expense insurance is a whole life policy with a smaller death benefit, usually between $5,000 and $25,000. It is designed to cover funeral costs, cremation, burial, and related expenses rather than replace income.

These policies typically do not require a medical exam, making them easier to obtain if you have health issues. However, they often include a waiting period—usually two years—during which the full death benefit is not paid if you die of natural causes. Accidental death is usually covered when ready.

Because the death benefit is small and the waiting period exists, final expense policies are more expensive per dollar of coverage than standard term or whole life. They are most useful if you want to spare your family the burden of paying funeral costs out of pocket and cannot obtain standard life insurance.

How to Get a Quote and Compare Costs

To see AARP life insurance rates, visit AARP.org and look for the insurance section, or call the phone number listed for life insurance inquiries. You will be asked for your age, health history, and smoking status. AARP will provide an estimate, though the final rate depends on underwriting.

Do not assume AARP's rate is the lowest available. Compare quotes from at least two other insurers—such as term life specialists or traditional carriers like State Farm or Mutual of Omaha. A few minutes of comparison shopping can save you hundreds of dollars per year.

When comparing, make sure you are looking at the same type of policy (term vs. whole life), the same death benefit amount, and the same term length. A lower premium on a 10-year term is not comparable to a higher premium on a 20-year term.

Medical Underwriting and Approval Timeline

After you request a quote, the insurance company will ask you to complete a health questionnaire. Depending on your age and the amount of coverage, you may also be asked to provide medical records from your doctor or to take a medical exam (blood pressure, blood test, or EKG).

The underwriting process typically takes two to four weeks. During that time, the insurance company reviews your health information and decides whether to approve you, approve you at a higher rate, or decline you. You will be notified in writing of the decision.

If you are declined, you have the right to ask why and to request reconsideration if you believe the decision was based on incomplete information. Some people are approved at a higher rate due to health conditions; you can accept the higher rate or shop elsewhere.

What Happens After You Buy a Policy

Once your policy is approved and you pay the first premium, coverage begins. You will receive a policy document from the insurance company (not from AARP) that outlines the death benefit, premium amount, payment schedule, and terms.

You pay premiums directly to the insurance company, usually monthly or annually. If you miss a payment, most policies have a grace period (typically 30 days) during which you can pay without losing coverage. After the grace period, the policy lapses.

If you die while the policy is active and premiums are paid, your beneficiary submits a death certificate to the insurance company and receives the death benefit. AARP does not process claims; the insurance company handles all claim questions and payments.

Frequently Asked Questions

Is AARP life insurance cheaper than buying from an insurance company directly?

AARP's group membership discount often lowers premiums compared to individual policies, but not always. Some direct insurers offer competitive rates without a membership fee. Always compare at least two quotes before deciding. The difference can be $10 to $50 per month depending on your age and health.

Can I cancel my AARP life insurance policy if I change my mind?

Yes. Most life insurance policies include a free look period (usually 10 to 30 days) during which you can cancel and receive a full refund of premiums paid. After that period, you can still cancel anytime by contacting the insurance company, but you forfeit any premiums already paid.

What if I am denied life insurance through AARP?

If you are declined, ask the insurance company for the specific reason in writing. You may be able to reapply after your health improves, or you can try other insurers—some specialize in covering people with health conditions at higher rates. Final expense insurance is sometimes easier to obtain if standard life insurance is not available.

Do I need a medical exam for AARP life insurance?

It depends on your age and the death benefit amount. Smaller policies and younger applicants often do not need an exam. Larger policies and older applicants usually do. The insurance company will tell you during the quote process whether an exam is required.

Can I keep AARP life insurance if I cancel my AARP membership?

Yes. Your life insurance policy is issued by the insurance company, not by AARP. Canceling your AARP membership does not affect your coverage. However, you will no longer receive the group rate discount on future policies or rate changes.