AARP offers life insurance through partner companies, not directly

AARP does not sell life insurance itself. Instead, AARP endorses and markets life insurance products underwritten by insurance companies like New York Life, Transamerica, and Mutual of Omaha. When you buy through AARP, you are purchasing from the insurance company, not from AARP. AARP receives a commission for the referral.

This matters because it means AARP membership does not automatically lower your rates or change your underwriting. You still go through the same medical underwriting and approval process as anyone else buying from that company. The main difference is that AARP has negotiated group rates for its members, which can be lower than what you would find buying directly from the insurer.

AARP advertises these products heavily in its magazine, website, and direct mail. The products available change over time and vary by state, so what AARP offers in your state may differ from what it offers in another.

Key Takeaways

  • AARP partners with insurance companies like New York Life and Transamerica to offer term life and whole life policies to members age 50 and older.
  • You purchase directly from the insurance company, not from AARP, though AARP negotiates group rates that may be lower than individual rates.
  • You still undergo full medical underwriting, and approval is not may provide even if you are an AARP member.
  • Rates and available products vary by state and change over time, so you should compare AARP-endorsed policies with quotes from other insurers before deciding.

Types of life insurance AARP endorses

AARP typically endorses term life insurance and whole life insurance products. Term life is temporary coverage — usually 10, 15, or 20 years — and costs less per month. Whole life is permanent coverage that lasts your entire life and includes a cash value component, but costs significantly more.

The specific products available through AARP depend on which insurance company is the current partner in your state. New York Life has offered AARP-endorsed whole life policies. Transamerica has offered term policies. Mutual of Omaha has offered both. These partnerships shift, so the product lineup changes.

AARP also sometimes endorses final expense insurance (also called burial insurance), which is a small whole life policy designed to cover funeral and burial costs. These policies typically have lower face amounts — $5,000 to $25,000 — and require minimal or no medical underwriting.

Age limits and who can buy

AARP-endorsed life insurance is generally available to AARP members age 50 and older. Some products extend to age 80 or 85 at the time of purchase. A few final expense policies may be available to people as young as 45.

You must be an AARP member to buy through AARP's endorsed products. AARP membership costs $16 per year for the first year, then $24 per year after that. If you are not already a member, you would need to join before you can purchase an AARP-endorsed policy.

Age limits for coverage vary by product and state. Some policies stop accepting new applicants at age 80; others go higher. The insurance company will tell you the maximum age when you request a quote.

Medical underwriting and approval

Even though AARP endorses these policies, you still go through the insurance company's underwriting process. This means answering health questions, and depending on the policy amount, you may need a medical exam.

For term life policies, underwriting is usually more thorough. The insurance company will ask about your medical history, current medications, smoking status, and sometimes order blood work or an EKG. Approval can take two to four weeks.

Final expense policies often have simplified underwriting — sometimes just a few health questions with no medical exam. These are faster to approve but have lower maximum coverage amounts and higher per-dollar costs.

Being an AARP member does not may provide approval. The insurance company can decline your process if your health history or current condition makes you too high a risk. Some people are approved at a higher rate (meaning higher monthly cost) than the standard rate.

How to get a quote from AARP-endorsed insurers

You can request a quote by calling the phone number listed in AARP materials or on the AARP website. You will speak with a representative from the insurance company (not AARP), who will ask basic health questions and explain the available products and rates.

Have ready: your age, whether you smoke, your general health history, and the coverage amount you are thinking about. The representative can give you a rough estimate over the phone, but a formal quote usually comes after you provide more detailed health information.

You can also compare rates by getting quotes from other insurers directly. Many insurance companies offer online quote tools where you answer health questions and see rates without speaking to anyone. This lets you see whether the AARP group rate is actually lower than what you would pay elsewhere.

Comparing AARP policies to other options

AARP-endorsed policies are not automatically the cheapest option. Group rates negotiated by AARP can be competitive, but they are not always the lowest available. Rates depend on your age, health, smoking status, and the coverage amount you want.

Before buying through AARP, get quotes from at least one or two other insurers. Companies like State Farm, Prudential, Banner Life, and Protective Life all sell term and whole life policies to people over 50. Online quote tools from these companies take five to ten minutes and let you compare side by side.

Also consider whether you actually need life insurance at this age. If you have no dependents, no debts, and enough savings to cover your funeral costs, life insurance may not be necessary. If you do need coverage, term life is usually much cheaper than whole life and covers the years when your dependents are most likely to need the money.

What to watch for

Whole life policies sold to people over 50 are expensive relative to the coverage they provide. A $50,000 whole life policy might cost $100 to $200 per month, while a $50,000 term policy might cost $15 to $30 per month. The extra cost buys you permanent coverage and a cash value account, but for most people, term is a better value.

Final expense policies have very high per-dollar costs because the coverage amounts are small and the underwriting is simplified. If you need $10,000 to $15,000 for funeral costs, it is often cheaper to set aside that money in a savings account than to pay premiums on a final expense policy for years.

Read the policy documents carefully before signing. Make sure you understand what is covered, what is not, any waiting periods for certain causes of death, and what happens if you stop paying premiums. Insurance companies are required to send you a copy of the full policy within a certain number of days after you buy it.

Frequently Asked Questions

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

Yes. You must be an AARP member to purchase AARP-endorsed life insurance. AARP membership costs $16 for the first year and $24 per year after that. If you are not already a member, you would need to join before you can buy.

Will AARP life insurance cover me if I have a pre-existing condition?

It depends on the condition and the policy. The insurance company will ask about your medical history during underwriting. Some conditions may result in a higher rate or exclusion for that specific condition. Others may result in denial. You will not know until you explore and the company completes its review.

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

Yes. Most life insurance policies have a free look period — usually 10 to 30 days after you receive the policy — during which you can cancel and get your money back. After that period, you can still cancel anytime, but you will not get a refund of premiums already paid.

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

Not necessarily. AARP negotiates group rates that may be lower than standard individual rates, but you should compare quotes from multiple insurers before deciding. Some people find better rates elsewhere, and some find AARP's rates competitive. The only way to know is to get quotes from both.

What happens to my AARP life insurance if I cancel my AARP membership?

Your life insurance policy continues. Canceling AARP membership does not affect the policy itself. You will still pay premiums and have coverage. However, you will lose access to AARP member discounts and services.