AARP whole life insurance is a very popular form of coverage that a lot of seniors get. When prospective customers look at AARP whole life insurance, retirement seems a little brighter. They believe that they can get whole life insurance regardless of medical history or any other factor. When it comes time to actually get the policy, you might be surprised what you find out. Here are a few precautions that you should take into account when looking at this type of insurance.
1. Limited Coverage
Most of the advertisements you see associated with variable whole life insurance say something about everyone being eligible. They give the impression that you can get approved no matter what. They say things like "no medical questions" or something to that effect. This is simply not true, because you can be turned down for a negative medical history. For example, if you have some sort of condition that you've had for years, you might be turned down for whole life insurance. This could be considered false advertising because a lot of the claims they make have been disproved by multiple people who have applied for their coverage. If you have been denied by several other life insurance companies, do not get your hopes up too high. There is a chance that you will be denied for this coverage as well.
2. AARP Brand
The AARP is one of the largest groups of people in the world. As such, members receive some great benefits across the country. You can get discounts on almost any product that you buy. With that being said, insurance companies that sell AARP products, have to pay a royalty to use the name AARP. Therefore, the cost associated with an AARP policy is actually higher than a normal policy. While some AARP policies truly are a good deal, some of them are more expensive just because they are part of the AARP umbrella. Before you agree to an AARP whole life policy, do a little bit of shopping around first. Just because it is part of the AARP does not mean that it is necessarily the cheapest plan around. Do not just take what they feed you.
3. Rising Premiums
Whole life insurance premiums are marketed to be a fixed payment until you die. Many advertisements say that the premiums never go up no matter what. This is another case of wishful thinking because premiums do rise from time to time. Some people claim that their premium went up as much as 50% in a single month. While this does not happen all the time, it can happen. Inflation is still present in today's economy, so rising prices are just part of the process. Therefore, if the cost of insuring all of their customers becomes more than they can afford at the current rate, they will raise the premiums. That is just a fact of doing business. Do not believe an advertisement that tells you otherwise.