AARP life insurance is worth considering if you're over 50 and have been turned down elsewhere, but it's not automatically the best choice for your situation

AARP life insurance is a may provide issue whole life policy, meaning the company will not deny you based on your health history. You won't take a medical exam or answer detailed health questions. That's the main selling point — if you have diabetes, heart disease, or other conditions that made other insurers say no, AARP will still cover you.

The tradeoff is cost. AARP policies are more expensive per dollar of coverage than term life insurance you could buy if you're in good health. The death benefit is also modest — typically $5,000 to $25,000, depending on your age and the plan. And there's a waiting period: if you die from natural causes in the first two years, your beneficiary gets back only the premiums you paid, not the full death benefit.

Whether it's a good fit depends on what you actually need the money for and whether you could get coverage elsewhere.

Key Takeaways

  • AARP life insurance requires no medical exam or health questions, so it's an option if other insurers have denied you.
  • The death benefit is small — usually $5,000 to $25,000 — and premiums are higher than term life insurance for people in good health.
  • There is a two-year waiting period: if you die from natural causes before two years pass, your beneficiary receives only your premiums back, not the full benefit.
  • You should compare the monthly cost against what your beneficiary actually needs, because you may find better value in a different type of policy or through a different insurer.
  • AARP policies are underwritten by New York Life or other carriers depending on your state, not by AARP itself.

How AARP life insurance actually works

When you buy an AARP policy, you're buying a whole life policy underwritten by New York Life Insurance Company or another carrier, depending on your state. AARP markets and administers it, but the insurance company is the one taking the risk.

You pay a monthly premium that stays the same for life. The policy builds a small cash value over time, which you can borrow against if you need to, though that's rarely the best use of it. When you die, your beneficiary receives the death benefit tax-free.

The catch is the two-year waiting period. If you die from any natural cause — heart attack, stroke, cancer, illness — in the first two years, your beneficiary gets back only what you paid in premiums, not the full death benefit. If you die from an accident, the full benefit pays out when ready. After two years, the full benefit pays out no matter the cause of death.

When AARP life insurance makes sense

AARP life insurance is worth considering if you have a health condition that other insurers have rejected. may provide issue means your medical history doesn't matter. If you've been turned down by three or four companies, AARP is often still an option.

It also makes sense if you need a small amount of coverage — under $25,000 — and you want the certainty that your beneficiary will have money for funeral costs, outstanding medical bills, or a small debt. The death benefit is modest enough that it's meant to cover final expenses, not replace a lost income.

AARP policies are also useful if you're in your 70s or 80s and term life insurance is no longer available to you at any price. Term policies usually end at age 80 or 85, and after that, whole life is one of the few options left.

When AARP life insurance is not the best choice

If you're in good health and under 65, you should get quotes for term life insurance before you buy AARP. A 20-year term policy for someone in good health is often one-third the cost of an AARP whole life policy for the same death benefit. You'll pay less and get more coverage.

AARP is also not the right choice if you need a large death benefit — $50,000 or more. The maximum benefit is usually $25,000, and even that is expensive. If you need substantial coverage, term life from another insurer or a different whole life carrier may be cheaper.

The two-year waiting period is also a real limitation. If you know you're in poor health and may not live two years, the policy will pay your beneficiary only what you've paid in premiums. That's not a good use of money if you're trying to leave something behind.

How AARP life insurance costs compare

AARP premiums vary by age, gender, and the death benefit amount you choose. A 60-year-old woman might pay $30 to $50 per month for a $10,000 benefit. A 75-year-old might pay $80 to $150 per month for the same benefit. These are rough ranges; your actual premium depends on your state and the specific plan.

To know if that's a good price, compare it to term life insurance. A healthy 60-year-old can often buy a 20-year term policy with a $250,000 benefit for $25 to $35 per month. That's far more coverage for less money. But if you're 75 or have health problems, term life may not be available at any price, and AARP becomes the realistic option.

You should also ask about any discounts. Some AARP members get a small reduction on premiums, though the discount is usually modest — 5 to 10 percent at most.

What happens if you stop paying premiums

If you miss a premium payment, you have a grace period — usually 30 days — to pay it without losing coverage. If you don't pay within that window, the policy lapses.

Once a policy lapses, you can sometimes reinstate it within a certain time frame (often three years), but you'll have to pay back premiums and may face new underwriting. Because AARP is may provide issue, reinstatement is usually possible, but you should not count on it. If you buy the policy, plan to keep paying the premium.

If you decide you no longer want the policy, you can surrender it and stop paying. You'll receive the cash value, which is usually small in the first few years. There's no penalty for surrendering a whole life policy, but you'll have no coverage after that.

How to compare AARP to other options

Before you buy, get quotes from at least two other sources. If you're in good health, get a quote for term life insurance from a company like Term4Sale or directly from an insurer like Banner Life or Protective Life. You'll see the price difference when ready.

If you've been denied by other insurers, ask them why. Some will deny you for a specific condition that another company will cover. Getting turned down by one company doesn't mean you'll be turned down by all of them.

If you do decide AARP is right for you, you can buy directly through AARP's website or by calling their phone line. There's no separate process process; you enroll through AARP's system, and the underwriting is handled by the insurance company.

Frequently Asked Questions

Can I buy AARP life insurance if I'm not an AARP member?

No. You must be an AARP member to purchase AARP life insurance. AARP membership costs $16 per year for those 50 and older. If you're not a member, you can join through AARP's website, and then you're when ready able to buy the insurance.

What if I die during the two-year waiting period?

If you die from a natural cause (illness, disease, age-related condition) in the first two years, your beneficiary receives only the premiums you paid, not the full death benefit. If you die from an accident, the full benefit pays out when ready, even during the waiting period.

Can I have more than one AARP life insurance policy?

You can buy multiple AARP policies, but there are limits. The total death benefit across all AARP policies is usually capped at $25,000 to $50,000, depending on your age. If you need more coverage, you would need to buy from a different insurer.

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

No. AARP life insurance is may provide issue, which means no medical exam, no health questions, and no underwriting based on your medical history. You answer basic questions about your age and whether you've applied for life insurance before, but that's it.

What if my health gets worse after I buy the policy?

Your premium will not change. Whole life premiums are locked in for life. If your health declines after you buy the policy, you keep paying the same amount, and the death benefit stays the same. This is one advantage of whole life over term — your rate is may provide never to increase.