Last Updated: November 25th, 2025
AARP life insurance is underwritten by New York Life Insurance Company and offered exclusively to AARP members age 50 and older. It includes three products: term life (up to $150,000), permanent whole life (up to $100,000), and guaranteed acceptance (up to $30,000). While convenient with no medical exams, AARP policies typically cost significantly more than comparable coverage from other carriers due to simplified underwriting and required AARP membership ($20/year, or $15 with automatic renewal).
Life insurance protects the people who depend on you financially. If you’re an AARP member, you’ve probably received mailings about their life insurance program. But is AARP life insurance a good deal, or should you shop around?
AARP partners with New York Life Insurance Company to offer three life insurance products exclusively to members. These policies don’t require medical exams, which sounds convenient. But there’s a catch: simplified underwriting often means higher premiums.
This review covers everything you need to know about AARP life insurance, from coverage options and costs to how it compares with other carriers. We’ll help you decide if it’s right for your situation.
AARP Life Insurance Overview
AARP doesn’t actually sell insurance. They partner with New York Life Insurance Company to offer life insurance products to their members through the AARP Life Insurance Program. You must be an AARP member to apply, which requires a $20 annual membership fee ($15 for the first year with automatic renewal).
All AARP life insurance products use simplified underwriting. That means no medical exam life insurance and minimal health questions. This makes the application process faster and less stressful, especially if you have health issues. The trade-off? You’ll likely pay more than you would with traditional fully underwritten policies.
Coverage is available to AARP members age 50 and older, with spouses or partners eligible starting at age 45. Some policies have upper age limits that affect how long you can keep coverage.
AARP Life Insurance Products
AARP offers three main life insurance products through New York Life. Each targets different needs and budgets.
| Policy Type | Coverage Amount | Premiums | Waiting Period | Medical Exam |
|---|---|---|---|---|
| Level Benefit Term Life | $10,000 – $150,000 | Increase every 5 years | None | No |
| Permanent Whole Life | Up to $100,000 | Fixed, never increase | None | No |
| Guaranteed Acceptance | Up to $30,000 | Fixed, never increase | 2 Years | No |
AARP Level Benefit Term Life Insurance
Term life insurance provides coverage for a specific period. AARP’s term policies offer $10,000 to $150,000 in coverage and are available to AARP members ages 50 to 74 and their spouses ages 45 to 74.
Here’s the catch: unlike most term policies, AARP term insurance isn’t truly level premium. Your rates increase every five years when you enter a new age bracket. These increases aren’t guaranteed or capped, making it difficult to budget long-term.
Coverage ends at age 80. However, you can exchange your term policy for permanent life insurance before age 80. The exchange doesn’t require medical underwriting, but your new permanent rates will be based on your age at the time of conversion.
The simplified underwriting means even healthy applicants don’t benefit from competitive rates. You answer a few health questions and provide other information, but no medical exam is required. If you’re in good health, you’ll almost certainly find better term life insurance rates elsewhere with traditional underwriting.
AARP Permanent Whole Life Insurance
This is a whole life insurance policy that stays in force for your entire life as long as you pay premiums. Coverage is available up to $100,000, and your rates are locked in and guaranteed never to increase.
There’s no waiting period, meaning your beneficiaries receive the full death benefit from day one if you pass away. The application requires answering health questions and providing other information, but no medical exam.
The policy builds cash value over time that you can borrow against. Any amount you borrow reduces the death benefit paid to your beneficiaries. This is permanent coverage designed for final expenses and leaving a legacy for loved ones.
Permanent life costs more than term insurance because it provides lifetime coverage and includes the cash value component. For AARP members who want guaranteed whole life coverage with simplified underwriting, this might be practical despite higher premiums compared to fully underwritten policies.
Coverage is available to AARP members ages 50 to 80 and their spouses or partners ages 45 to 80.
AARP Guaranteed Acceptance Life Insurance
This is AARP’s final expense or burial insurance option designed to cover funeral costs and end-of-life expenses. Coverage ranges from $2,500 to $30,000 (some states limit coverage to $25,000).
True to its name, this is guaranteed acceptance. There are no health questions and no medical exam. Everyone who applies gets accepted regardless of health conditions. This makes it ideal for people with serious health issues who can’t qualify for other coverage.
The trade-off? A two-year waiting period. If you die from natural causes within the first two years, your beneficiaries receive 110% of premiums paid instead of the full death benefit. Accidental death is covered from day one with full benefits.
Coverage is available to AARP members ages 50 to 85 and their spouses or partners ages 45 to 85. Rates are fixed and never increase.
This product works best for people with serious health conditions who can’t qualify for coverage elsewhere. If you’re reasonably healthy enough to answer a few health questions, you should compare simplified issue policies from other carriers that don’t have waiting periods.
AARP Life Insurance Riders and Benefits
AARP policies include several built-in benefits to enhance your coverage.
Accelerated Death Benefit (Included)
All AARP term and permanent life policies include an accelerated death benefit at no additional cost. If you’re diagnosed with a terminal illness and given 24 months or less to live, you can access up to 50% of your death benefit while still alive.
You can use these funds for medical expenses, hospice care, or any other needs. The remaining death benefit goes to your beneficiaries when you pass. This is a valuable feature that provides financial flexibility during difficult times.
Conversion Option (Term Life Only)
AARP term life policies can be exchanged for permanent coverage anytime before you turn 80. The conversion doesn’t require answering new health questions or taking a medical exam. Your new permanent rates will be based on your age at conversion.
This flexibility lets you start with lower term premiums and convert to permanent coverage later without worrying about health changes making you uninsurable.
AARP Life Insurance Rates
AARP life insurance rates aren’t competitive compared to other major carriers. The simplified underwriting and lack of medical exams mean you’ll pay more for the same coverage amount.
Exact rates depend on your age, gender, tobacco use, and coverage amount. AARP’s term policies increase every five years when you enter a new age bracket, making long-term costs difficult to predict.
For comparison, healthy applicants typically find significantly lower rates with traditional underwriting from other highly rated carriers. The convenience of no medical exams comes at a substantial cost premium.
If you have health issues that would prevent approval elsewhere, AARP’s rates become more competitive. The simplified underwriting means you’re not penalized as heavily for health conditions compared to traditional policies.
AARP Life Insurance Pros and Cons
Advantages
No medical exam required
All AARP policies use simplified underwriting with minimal health questions or guaranteed acceptance. This benefits people with health issues who might struggle to qualify elsewhere.
Backed by New York Life
New York Life Insurance Company has exceptional financial strength ratings and has been in business for over 175 years. Your policy is backed by a stable, reliable company with the highest ratings from major rating agencies.
Fast approval process
Without medical exams and extensive health questions, you can get approved quickly. Most applications are processed within days, and many are approved instantly online.
Convenient for AARP members
If you’re already an AARP member, the application process is streamlined. You can apply online, by phone, or through the mail.
Conversion option on term policies
AARP term life can be exchanged for permanent coverage before age 80 without new medical underwriting. This protects you if your health declines.
Accelerated death benefit included
Terminal illness riders are built into all policies at no extra cost, allowing access to 50% of your benefit if diagnosed with 24 months or less to live.
Disadvantages
Higher premiums
Simplified underwriting means everyone pays more, even healthy applicants who would qualify for preferred rates elsewhere. Expect to pay considerably more than traditional policies.
Requires AARP membership
You must join AARP ($20/year, or $15 with automatic renewal) and be 50 or older to apply. This adds to your total cost.
Term rates increase every 5 years
Unlike traditional level term insurance, AARP term premiums rise every five years with no cap on increases. This makes long-term costs unpredictable.
Coverage ends at age 80 for term
If you need term coverage past 80, you must convert to permanent insurance or lose coverage. Other carriers offer term policies extending to age 90 or beyond.
Limited coverage amounts
Maximum coverage is $150,000 for term and $100,000 for permanent life. Many people need more protection for their families.
Two-year waiting period on guaranteed acceptance
The guaranteed acceptance policy only pays 110% of premiums if you die from natural causes in the first two years. Full benefits don’t kick in until year three.
How to Get Better Life Insurance Rates
Even if you’re considering AARP life insurance, you should compare quotes from multiple carriers. Here’s how to save money on coverage.
Compare Multiple Carriers
Don’t settle for the first quote you receive. Different insurance companies specialize in different risk profiles. One carrier might offer significantly better rates based on your age, health, and needs.
Shopping around is especially important if you have any health issues. Some carriers are more lenient about specific conditions than others. An independent agent can help you find the best match.
Work with an Independent Agent
Independent agents represent multiple insurance companies and can shop your application to dozens of carriers at once. This saves you time and ensures you see competitive rates.
We work with over 30 highly rated insurance companies. We can show you quotes from carriers that specialize in your age group and health profile, including options that may beat AARP’s rates significantly.
Consider Traditional Underwriting
If you’re reasonably healthy, don’t avoid policies that require medical exams. Traditional underwriting typically results in much lower premiums for healthy applicants.
The exam is free, quick, and often done at your home. The savings can be substantial, especially over the life of a long-term policy. You might pay considerably less than AARP’s simplified issue rates.
Improve Your Health Before Applying
If you’re a smoker, quitting for at least 12 months before applying can save you 50% or more on premiums. Losing weight, managing blood pressure, and controlling chronic conditions also improve your rates.
Even small health improvements can move you into a better rate class with significant savings. It’s worth delaying your application a few months if health improvements will substantially lower your premiums.
Buy the Right Amount of Coverage
Don’t over-insure or under-insure. Calculate your actual needs based on:
- Outstanding debts and final expenses
- Income replacement for dependents
- Education costs for children
- Future financial goals
Buying exactly what you need prevents wasted premium dollars while ensuring adequate protection. Learn more about calculating your life insurance needs.
AARP Financial Strength Ratings
Since New York Life underwrites all AARP life insurance policies, you’re relying on New York Life’s financial strength. Here’s how they’re rated by major rating agencies as of 2025:
- A.M. Best: A++ (Superior) – Highest rating
- Fitch Ratings: AAA (Exceptionally Strong) – Highest rating
- Standard & Poor’s: AA+ (Very Strong) – Second-highest rating
- Moody’s: Aa1 (Excellent) – Second-highest rating
These top-tier ratings indicate New York Life has exceptional financial strength to pay claims. The company has been in business for over 175 years and consistently maintains the highest ratings from major agencies.
This is one of AARP’s genuine advantages. Your policy is backed by one of the most financially stable insurers in the industry. You don’t have to worry about the company being unable to pay your death benefit.
Frequently Asked Questions
Is AARP life insurance a good deal?
AARP life insurance offers convenience but not value. The simplified underwriting and no-exam policies make it easy to qualify, but premiums are significantly higher than traditional policies with medical exams. If you’re healthy enough to qualify for standard underwriting elsewhere, you’ll save considerably by shopping around. AARP works best for people with health issues who need guaranteed or simplified issue coverage.
Do I need to be an AARP member to get AARP life insurance?
Yes, AARP life insurance is only available to AARP members age 50 and older. Membership costs $20 per year, or $15 for the first year with automatic renewal. Spouses or partners can apply starting at age 45. If you’re not already a member, factor this annual fee into your total cost comparison.
What’s the maximum coverage amount for AARP life insurance?
Maximum coverage varies by product: $150,000 for term life, $100,000 for permanent whole life, and $30,000 for guaranteed acceptance. Higher amounts may be available by calling New York Life directly. If you need more protection, you may need to supplement with policies from other carriers.
Does AARP term life insurance have level premiums?
No. Unlike traditional term policies, AARP term insurance premiums increase every five years when you enter a new age bracket. These increases aren’t capped or guaranteed, making it difficult to budget for long-term costs. Most people are better served by true level term policies from other carriers that maintain the same premium for 10, 20, or 30 years.
What happens if I die during the waiting period for AARP guaranteed acceptance insurance?
If you die from natural causes within the first two years, your beneficiaries receive 110% of all premiums paid. They don’t receive the full death benefit until after the two-year waiting period ends. If you die from an accident at any time, the full death benefit is paid immediately with no waiting period.
Can I convert my AARP term policy to permanent insurance?
Yes. AARP term policies can be exchanged for permanent coverage anytime before you turn 80. The conversion doesn’t require answering new health questions or taking a medical exam. Your permanent rates will be based on your age at the time of conversion. This is a valuable feature if your health declines and you want lifelong coverage.
How do AARP rates compare to other no-exam life insurance?
AARP rates are generally higher than many other simplified issue carriers. While competitive for people with significant health issues, healthy applicants typically find better rates with other no-exam carriers. The required AARP membership also adds to the total cost. It’s worth comparing quotes from multiple simplified issue carriers before choosing AARP.
Does AARP life insurance build cash value?
Yes, the permanent whole life policy builds cash value over time that you can borrow against. The term life and guaranteed acceptance policies do not build cash value. Any amount you borrow from the cash value reduces the death benefit paid to your beneficiaries.
Key Takeaways
- AARP life insurance is underwritten by New York Life and only available to AARP members age 50 and older ($20/year membership, or $15 with automatic renewal)
- Three products available: term life (up to $150,000), permanent whole life (up to $100,000), and guaranteed acceptance (up to $30,000)
- All policies use simplified underwriting with no medical exams, making approval easier but premiums significantly higher than traditional policies
- Term policies have premiums that increase every five years and coverage ends at age 80
- Permanent whole life provides lifetime coverage with fixed premiums and cash value accumulation
- Guaranteed acceptance has a two-year waiting period for natural death claims
- New York Life’s financial strength ratings are exceptional (A++ from A.M. Best, AAA from Fitch)
- Healthy applicants should compare quotes from multiple carriers with traditional underwriting for considerably lower rates
- Term policies can be converted to permanent coverage before age 80 without new medical underwriting
- All policies include accelerated death benefit for terminal illness at no extra cost
Need affordable life insurance without the guesswork? We’ll compare quotes from over 30 top-rated carriers to find your best rates.
