AARP life insurance plans offer a wide range of benefits for people in every walk of life. Regardless of your need for life insurance, the AARP life insurance plan from New York Life can help. For those who want to protect their families in the event of their death, life insurance is critical. If you do not currently have a policy and are a member of the AARP, you could be missing out on some great benefits. New York Life is one of the best life insurance companies out there and your AARP membership gets you access to some good policies. Choosing the right policy for your situation is important. So how exactly do you choose the best AARP life insurance plan for you?
Assess Your Situation
The need for life insurance is different for each person. Which policy you choose should be determined by several important factors. Do you have any family members that would need to be taken care of when you're gone? How much would they need in order to live a comfortable lifestyle for a number of years. Do you have a lot of outstanding debt that would need to be retired? How much will your final expenses cost? These are all issues that you should look at before selecting a policy from AARP.
Whole vs. Term
While there are many variations on life insurance, there are two themes that keep recurring. You can get a whole life insurance policy or a term policy. With whole life insurance you get the benefit of having a policy that lasts until you die. As long as you pay the premiums, you will never lose your policy. This is a great benefit to have. On top of that, whole life insurance grows a cash value as you go. Part of your monthly premium goes towards an investment portfolio and accumulates interest. You do not get to see where your money is going during this time. You just get a report that tells you the cash value of the policy.
Term insurance only lasts for a specified amount of time. You choose a number of years at the beginning of your policy and it will run for that many years. It accumulates no cash value as you go because all of the money in your premium goes towards death benefits. The benefit of term life insurance is that it is cheaper than whole life insurance.
AARP life insurance policies give seniors some benefits that other companies can not claim. For one thing, you will never be singled out for a premium increase. If everyone in your demographic goes up in premium, then you will too. However, you will not individually face an increase.
Another great thing about AARP life insurance is that no physical examination is required. You simply answer a few questions and send in your application. Due to this fact, AARP life insurance has one of the highest approval rates in the industry.