AARP Life Insurance: Deal or No Deal?

I’m a big fan of most of the AARP programs. For instance, as a small business owner, their health insurance program saved me over a hundred dollars each month once I turned 50. However, not all of their programs are money-savers. Here’s the scoop on their life insurance program.

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AARP offers a variety of term and whole life insurance products in amounts ranging from $2500 to $100,000, which are administered by New York Life. One of the prime advantages to the AARP program is that since the AARP organization includes such a broad customer base, no physical exam is required to buy the AARP life insurance products. You’ll just complete a short questionnaire–either on the phone or via their Web site–and have an answer in minutes, not days or even weeks as with many other carriers.

AARP also offers a variety of policies, designed to meet specific needs.  There is level term coverage, which keeps the premium the same for a specific range of time (say, ten years). There is decreasing term coverage, which guarantees that your premium will stay the same, although your coverage may decrease; and you can purchase a new term policy (albeit at a higher rate), if desired, when the existing term policy expires without an exam.

For more information on AARP life insurance products, visit the AARP Web site.

My recommendation: AARP’s term life insurance is a deal.