4 Important Facts About AARP Life Insurance For Diabetics

AARP Life Insurance for Diabetics is designed to help diabetics get a life insurance policy when other policies might not be available to them. Because diabetics are considered a high risk to most life insurance companies, they are usually not able to get coverage through traditional policies. The AARP life insurance policies have become very popular in recent years. However, before you sign up, there are a few facts you should know.

AARP Endorses the Policy

Many AARP members, and many senior citizens that wish to be members, are under the assumption that AARP actually underwrites the life insurance policy that makes coverage available for diabetics. However, this is not the case. While AARP have a financial division that is a for profit entity and does sell some types of insurance products, the life insurance policy endorsed by AARP is actually sold by the New York Life Insurance company. AARP only endorses, or recommends, the policy to AARP members and it does not sell or underwrite these particular policies.

The Policy is Expensive

Although the policy does provide coverage for diabetics and may be the only option available to some, the life insurance policy is not really designed only for diabetics and is often purchased by AARP members that are not afflicted with the disease. In fact, sometimes, AARP members that are eligible for life insurance policies from other companies purchase the policy because of the AARP name. However, you should be aware that the insurance policy endorsed by AARP is considered to be very expensive when compared to more traditional life insurance policy plans. Therefore, if you qualify for traditional life insurance with another company, you may want to consider purchasing another plan besides the AARP endorsed plan.

Limited Benefits for First Two Years

The AARP sponsored life insurance policy issued by the New York Life Insurance company also places restrictions on claims and payments within the first two years after the policy purchase. While the plan is relatively easy to qualify for and does not require a whole lot of medical history questionnaires or even an exam, all claims made within the first two years are subject to a very strict review and can be refused for many reasons. In fact, a common complaint with customers that have purchased this plan is that the New York Life Insurance company refused to pay claims or only paid very minimal amounts for claims for policyholders that died within the first two years of coverage.

Available for People Aged 50 to 80

Because AARP is strictly an organization for senior citizen members, the AARP endorsed life insurance policy is only available to AARP members that are age 50 to 80 years old. If you are an AARP member and are married, your spouse may qualify for the AARP endorsed policy if they are 45 years old. However, the AARP member that is 50 years old must also purchase a policy before the spouse can qualify to purchase the plan. At this time, AARP does not have the life insurance plans available for members older than 80 years old.

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