AARP life insurance policies are some of the most commonly used policies in the market today for retired people. They advertise quite a bit and many people go with their policies because they are members of the AARP. While they are one of the more popular life insurance companies, there are a few things that you should be aware of when you get one of their policies. Here are a few precautions to be aware of with AARP.
1. Not Everyone Is Approved
If you've ever seen a commercial for an AARP life insurance policy, you know that one of their main selling points is that everyone is approved. Every member of the AARP will be granted acceptance into their life insurance program with no questions asked. The fact of the matter is, this simply is not true. There are many different people who have been turned down by them for one reason or another. While they may have a better acceptance rate than others, do not get your hopes up if you've been turned down by other companies. They are really no different than the rest when it comes to approvals.
2. Rates Can Go Up
Another prominently featured claim in most of AARP's life insurance adds is that premiums always stay the same. They say something to the effect of "rates never go up". This is also not true as many people have reported that their rates have gone up from time to time. While they may do their best to keep rates low, they cannot always keep them exactly the same. They are an insurance company and when the cost of insuring their customers goes above what they are currently charging, they have to raise prices. Just be prepared to pay more from time to time just like with every other insurance company.
3. Not Always the Cheapest
Just because you are a member of AARP does not mean that you will always get the best deal. Insurance providers actually pay a premium to use the AARP name and trademark. Therefore, they pass the cost of the use on to you. Therefore, you can sometimes get a cheaper rate on your life insurance policy from another company. You need to compare life insurance policies and make sure that you are getting the best deal that you can get. Do not always just take whatever the AARP throws your way unquestioned.
4. System Troubles
When you join the AARP, you are given an AARP number for your identification. You can use this number for a variety of different things for discounts and other benefits. When you are shopping for an AARP life insurance policy, you should be able to enter your AARP number in and get a quote immediately. Sometimes, their system is not up to date or working properly and it will not work. You enter your AARP number in and it does nothing or says "Invalid". This can be frustrating for AARP members that are trying to get a quote online.