AARP Life Insurance for Seniors: Final Expense Options From New York Life

Short answer: AARP life insurance for seniors comes from New York Life. AARP’s life insurance page lists AARP Permanent Life Insurance (“Up to $100,000 in coverage with no premium increases”) and AARP Guaranteed Acceptance Life Insurance (“Up to $30,000 in coverage with no premium increases”), along with a term product and a Life Insurance Options plan. New York Life says Permanent Life is available to AARP members ages 50–80 based on health questions, and Guaranteed Acceptance is available to members ages 50–85 with no health questions but a two-year limited benefit period.

Does AARP have life insurance?

Yes, but AARP isn’t the insurer. AARP says, “The AARP Life Insurance Program is underwritten by New York Life Insurance Company,” and “AARP and its affiliates are not insurers.” It also discloses that “New York Life pays royalty fees to AARP for the use of its intellectual property.”

AARP’s life insurance benefits page lists four products, all from New York Life:

1. AARP Term Life Insurance from New York Life: “Coverage up to $150,000 that ends at age 80.”
2. AARP Permanent Life Insurance from New York Life: “Up to $100,000 in coverage with no premium increases.”
3. AARP Guaranteed Acceptance Life Insurance from New York Life: “Up to $30,000 in coverage with no premium increases.”
4. AARP Life Insurance Options from New York Life: “Customized plans to supplement your retirement savings.”

New York Life’s nylaarp.com site also lists AARP Permanent Life Insurance With Living Benefits. For the basics, see what final expense insurance is.

How do AARP’s permanent and guaranteed acceptance plans compare?

Here’s what New York Life’s nylaarp.com pages say about each:

Sources: nylaarp.com product pages, FAQs and comparison page. Products and features vary by state.

For both products, New York Life says, “Your rate is determined by your age when you apply.” We don’t publish rates; get a quote for your age.

What does AARP Permanent Life Insurance offer?

New York Life describes it as “Valuable whole life coverage up to $100,000” with “No medical exam, just health and other information.” It says “Approval is based on health information you provide or allow us to collect.”

Other points from New York Life’s pages:

• Cash value: “Over time, this insurance will build cash value,” and “If you cancel your coverage, any cash value will be yours to keep.” New York Life says you can take a loan against cash value, but “the loan amount and any interest due will be deducted from the death benefit” if it isn’t repaid.
• Paid up: “At age 95 (or sooner in some cases), your coverage is considered ‘paid up,’” and coverage continues for life with no further premiums.
• Terminal illness: The FAQ says that “If you’re diagnosed with a terminal illness and given a life expectancy of 24 months or less,” you may be able to access half your benefit amount (12 months in New York).

The Living Benefits version adds an option that “can pay half of your benefit amount early if you develop a need for chronic care in the future,” New York Life says, and it’s for the same ages, 50–80, but “Product not available in all states.”

What does AARP Guaranteed Acceptance Life Insurance offer?

New York Life says this coverage “does not require a physical medical exam or health questions,” and AARP says, “Your acceptance is guaranteed, and your rates will never go up.” Speaking of guaranteed acceptance coverage in general, a New York Life learning-center article on who needs guaranteed acceptance coverage says it can be used for “burial, cremation, or funeral” costs and may be an option “For someone with major medical issues or a person managing chronic illnesses.”

The trade-off is the first two years. New York Life’s FAQ says:

• “Because acceptance is guaranteed, there is a two-year limited benefit period.”
• “Full benefits will be paid for accidental death from day one.”
• “In the first two years, death from natural causes will pay a limited benefit of 110% of premiums paid.”
• Residents of Pennsylvania, Minnesota, Missouri and Montana have different terms. For example, in Minnesota, “The minimum benefit payable is 400% of premiums due and payable through the first year.”

If you want to compare plans that pay in full from the start, see burial insurance with no waiting period.

Can seniors over 70, 80 or 85 get AARP life insurance?

It depends on the product and your state. Based on New York Life’s pages:

• Over 70: Permanent Life (to 80) and Guaranteed Acceptance (to 85) both accept new applicants in their 70s. New York residents: Guaranteed Acceptance is “available to AARP members and their spouses ages 50 – 75.”
• Over 80: Guaranteed Acceptance Life is available to members ages 50–85, but “Residents of GU, MN, MO, MT, OR, USVI: Available to AARP members ages 50 - 80.”
• Over 85: New York Life’s pages list 85 as the top issue age for Guaranteed Acceptance.

For more on coverage at older ages, see life insurance for seniors over 80. And what about the term product? It’s for applicants ages 50–74 and ends at age 80; see our guide to AARP term life for a mortgage for the details.

Do you have to be an AARP member?

Yes. AARP and New York Life both say, “AARP membership is required for Program eligibility,” and New York Life notes that “Yearly renewal fees will be billed separately by AARP.” Its product pages also say “Not eligible for non-AARP members in AK, LA, and OR.” Ask New York Life how membership works where you live.

One more item to confirm: the nylaarp.com pages list spouse/partner issue ages starting at 45, but the application section also says, “To apply, your spouse/partner must be at least 50 years old and an AARP member.” Ask New York Life which applies to your spouse.

What should you check before you apply?

1. Your age and state. Confirm the issue age and coverage cap for your state, since AARP notes that “Not all products are available in all states.”
2. Existing coverage. For Guaranteed Acceptance, AARP says, “If you’re already insured with the program, the full coverage amount may not be available.”
3. The first two years. On Guaranteed Acceptance, death from natural causes in the first two years pays 110% of premiums paid, not the full amount (state terms vary).
4. Health questions. If you can answer health questions, ask whether Permanent Life is an option for you. The NAIC says, “It’s important to tell the truth on the application,” and the Texas Department of Insurance (TDI) says “Life insurance policies have a two-year contestable period.”
5. Premiums you can keep paying. The NAIC says, “Before you buy a life insurance policy, be sure you can pay the premiums.” TDI also says, “Don’t choose a policy on price alone.”
6. Free look. New York Life says, “A 30-day free look guarantees your satisfaction.”
7. Keep your current policy until the new one is in force. The NAIC says, “Don’t cancel your current policy until you get the new one.”

The bottom line

AARP life insurance comes from New York Life and requires AARP membership. Permanent Life uses health questions and goes up to $100,000 for ages 50–80; Guaranteed Acceptance has no health questions, goes up to $30,000 for ages 50–85 and has a two-year limited benefit period. Check your state’s ages and limits before you decide.

If you’d like to compare final expense options from several insurers, a licensed agent can go over them with you, with no obligation. Here’s how calling RestAssured works.

RestAssured is not an insurance company or an insurance agency; we connect callers with independently licensed insurance agents. RestAssured is not affiliated with AARP or New York Life. To buy an AARP life insurance policy directly, contact New York Life. Product names are trademarks of their owners.

Frequently asked questions

Does AARP have life insurance?

Yes, through New York Life. AARP’s life insurance page lists AARP Term, Permanent, Guaranteed Acceptance and Life Insurance Options from New York Life, and AARP says the program is underwritten by New York Life Insurance Company. AARP adds that “AARP and its affiliates are not insurers.”

Does AARP have burial insurance?

AARP’s life insurance page doesn’t list a product called burial insurance; it lists AARP Term, Permanent, Guaranteed Acceptance and Life Insurance Options from New York Life. A New York Life learning-center article says guaranteed acceptance coverage in general can be used for burial, cremation or funeral costs, and New York Life describes AARP Permanent Life as whole life coverage up to $100,000.

Can seniors over 80 get AARP life insurance?

New York Life says AARP Guaranteed Acceptance Life is available to AARP members ages 50–85 (50–80 in GU, MN, MO, MT, OR and USVI, and 50–75 in New York). AARP Permanent Life is for members ages 50–80.

Can I get AARP life insurance over 85?

New York Life lists 85 as the top issue age for AARP Guaranteed Acceptance Life, and 80 for AARP Permanent Life. If you’re older than that, ask a licensed agent what other options are available in your state.

Does AARP Guaranteed Acceptance Life have a waiting period?

New York Life says it has a two-year limited benefit period. During the first two years, death from natural causes pays 110% of premiums paid, accidental death is paid in full from day one, and some states (PA, MN, MO, MT) have different terms.

Sources

• AARP: Life Insurance Plans and Member Benefits
• AARP: AARP Permanent Life Insurance from New York Life
• AARP: AARP Guaranteed Acceptance Life Insurance from New York Life
• New York Life (nylaarp.com): AARP Permanent Life Insurance
• New York Life (nylaarp.com): Permanent Life Insurance FAQs
• New York Life (nylaarp.com): AARP Guaranteed Acceptance Life Insurance
• New York Life (nylaarp.com): Guaranteed Acceptance Life Insurance FAQs
• New York Life (nylaarp.com): Compare AARP Life Insurance
• New York Life (nylaarp.com): AARP Permanent Life Insurance With Living Benefits
• New York Life (nylaarp.com): AARP Term Life Insurance from New York Life
• New York Life (nylaarp.com): How Life Insurance Can Help with Final Expenses
• New York Life (nylaarp.com): Who Needs Guaranteed Acceptance Life Insurance
• Texas Department of Insurance: Life insurance guide
• NAIC: A Consumer's Guide to Life Insurance

This article is for general education. Policy features, prices and eligibility vary by insurance company and state; your agent will explain the specific terms of any policy before you apply.