HomeAarp-FaqHow-Much-Is-Aarp-Life-Insurance-A-Month

AARP Life Insurance Cost

How much is AARP life insurance a month?

Deciding on life insurance can be crucial for financial planning and ensuring the security of loved ones. AARP, known for its advocacy on behalf of seniors, offers life insurance policies through New York Life. Understanding the cost of these policies and the factors influencing them can help you make an informed decision.

Types of AARP Life Insurance

AARP provides several life insurance plans designed to meet various needs. The plan you choose significantly impacts the monthly premium. Here are the main types of life insurance offered by AARP:

1. Term Life Insurance

  • Description: Provides coverage for a specified term (temporary). It is generally the most affordable option.
  • Eligibility: Available to members aged 50 to 74.
  • Renewal: Renewable until age 80.
  • Coverage Amounts: Typically between $10,000 to $100,000.

2. Permanent Life Insurance

  • Description: Offers lifelong coverage, as long as premiums are paid. This plan accumulates cash value over time.
  • Eligibility: Available to members aged 50 to 80 and spouses aged 45 to 80.
  • Coverage Amounts: Up to $50,000, relatively lower than term insurance but lasts for life.

3. Guaranteed Acceptance Life Insurance

  • Description: Available without medical exams or health questions, focusing on covering final expenses.
  • Eligibility: Members aged 50 to 80.
  • Coverage Amounts: From $2,500 to $25,000.

Factors Affecting Monthly Premiums

The monthly cost of AARP life insurance policies varies based on several factors:

Age and Eligibility

  • Age Brackets: Younger applicants typically enjoy lower premiums. For instance, a 50-year-old may pay less than a 70-year-old for the same coverage.
  • Eligibility Criteria: Ensure you meet the age requirements for the policy you're interested in.

Health and Lifestyle

  • Health Status: While some plans like the Guaranteed Acceptance do not require medical exams, healthier applicants in certain plans might benefit from lower premiums.
  • Lifestyle Choices: Smoking and other high-risk habits can increase premiums.

Coverage Choice

  • Term vs. Permanent: Term life insurance is typically cheaper than whole life. Your choice between temporary and lifelong coverage will impact cost.
  • Policy Amount: Higher coverage amounts incur higher monthly premiums.

Plan Specifics

  • Term Insurance: Renewable yearly, premiums may increase with age upon renewal.
  • Permanent Insurance: Generally has level premiums, but they start at a higher rate compared to term insurance.

Estimated Monthly Premiums

Term Life Insurance

For term life policies, AARP generally offers age-bracketed pricing:

Age Estimated Monthly Premium Coverage Amount
50-54 $14 - $26 $10,000 - $50,000
55-59 $20 - $36 $10,000 - $50,000
60-64 $34 - $57 $10,000 - $50,000
65-69 $60 - $94 $10,000 - $50,000
70-74 $100 - $151 $10,000 - $50,000

Permanent Life Insurance

Permanent policies start generally higher due to lifelong coverage and cash value component:

Age Estimated Monthly Premium Coverage Amount
50-54 $85 - $138 Up to $25,000
55-59 $112 - $165 Up to $25,000
60-64 $145 - $201 Up to $25,000
65-69 $190 - $251 Up to $25,000
70-74 $238 - $317 Up to $25,000

Guaranteed Acceptance Life Insurance

Offering a simplified acceptance process, typically between $15 to $130 monthly, depending on the coverage chosen and the age at enrollment.

Why Choose AARP Life Insurance?

  • Trusted Brand: Endorsed by AARP, a reputable organization focused on senior citizens.
  • Tailored for Seniors: Policies cater to the needs and circumstances of older individuals.
  • No Medical Exams: Certain plans provide easy access without health questions or exams.
  • Flexibility: Options from final expense coverage to substantial protection, offering choice based on financial needs and planning.

Frequently Asked Questions (FAQs)

1. Is there a waiting period for coverage to begin?

Yes, for specific policies like Guaranteed Acceptance, the death benefit during the first two years is limited to a return of premiums plus interest unless death is accidental.

2. Can I adjust my coverage or cardholder?

Adjustments typically require contacting the policy manager. Your coverage can be decreased or canceled but increasing might need reevaluation.

3. How does renewal work for term policies?

They are annually renewable up till age 80, and premiums may rise as you age.

Summary and Next Steps

Understanding your needs concerning coverage amount and type will guide which AARP policy aligns best. Consider differences in term versus permanent insurance, alongside factors like budget and future financial planning. For personalized advice, speaking to an AARP insurance professional may be advantageous.

Explore further resources to comprehend life insurance dynamics better, ensuring a robust plan for your future.