Is Your AARP Life Insurance Good?

Life insurance is an insurance policy that pays your family (or whoever you choose to designate as beneficiaries) a certain sum of money when you die. This can help to take care of the funeral expenses and costs that may emerge once you die. It will also help to make sure your loved ones are taken care of. If you are an AARP member, you can get a customized AARP life insurance policy. This article will detail its advantages and disadvantages to help you decide if AARP life insurance is right for you.

What AARP Life Insurance Offers

AARP life insurance is underwritten by the New York Life insurance company. AARP sells the policy and makes sure that it terms fit the needs of AARP members. In order to qualify, all you have to do answer three basic health questions. Once you're accepted, the coverage can't be discontinued without your consent. The benefits kick in as soon as the coverage takes effect.

AARP life insurance can be divided into two groups:

  • Permanent life insurance - a life insurance policy that lasts for as long as you live, so long as you continue paying the premiums. Premiums and coverage remain the same for as long as you hold the policy. If you stay in a nursing home for more than 180 days, the premiums are waived.
  • Term life insurance - a life insurance policy that lasts for a certain specified period of time. It can be extended once that period ends. Premiums increase the closer it gets to the end, while coverage decreases. The premiums increase in response to general trends rather than anything that happens to you in particular.

AARP Life Insurance Disadvantages

While there are life insurance policies that are more expensive than AARP life insurance, it isn't affordable by any stretch. The amount of money you'll get from the policy is limited to $100,000 for a term life insurance policy and $50,000 for a permanent life insurance. Depending on your family's financial situation, this may not be enough.

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