When it comes to life insurance, making an informed choice is crucial—especially when there are so many options available. AARP, one of the most well-known organizations for older adults, offers life insurance plans that cater to those over 50. But is AARP life insurance a good choice in 2025? In this review, we’ll dive deep into the benefits, drawbacks, and ratings to help you decide if it’s right for you.
What is AARP Life Insurance?
AARP (American Association of Retired Persons) offers life insurance policies underwritten by New York Life, a reputable and financially stable insurance company. Their life insurance options are designed for AARP members aged 50 and older, offering both term and permanent life insurance options.
AARP Life Insurance Options in 2025
- AARP Term Life Insurance
- Coverage: Ranges from $10,000 to $100,000.
- Eligibility: Available to AARP members aged 50-80.
- Term Length: 10, 15, 20, and 30-year options.
- AARP Permanent Life Insurance
- Coverage: Ranges from $5,000 to $25,000.
- Eligibility: Available to AARP members aged 50-80.
- No Medical Exam: Simplified issue life insurance, meaning no medical exams are required for approval.
- AARP Guaranteed Acceptance Life Insurance
- Coverage: $5,000 to $25,000.
- Eligibility: Available for AARP members aged 50-80, with no health questions or medical exams.
Pros of AARP Life Insurance
- No Medical Exam for Certain Plans AARP’s permanent life insurance policies and guaranteed acceptance life insurance plans don’t require medical exams. This can be a major plus if you have health issues and would otherwise struggle to qualify for traditional life insurance.
- Availability to Older Adults Many life insurance providers stop offering coverage to seniors above a certain age. However, AARP offers policies for people up to 80, which is a significant advantage for those who are older and still need coverage.
- Reputable Partner – New York Life AARP’s life insurance plans are underwritten by New York Life, which has an excellent reputation for financial strength and customer service. This provides peace of mind that the insurance company will be reliable in paying claims.
- Flexible Payment Options AARP life insurance allows you to choose between monthly, quarterly, or annual payment options, making it easier to manage your premiums.
- Affordable for Seniors Compared to other insurance providers, AARP’s policies are often more affordable for seniors. With lower premiums for smaller coverage amounts, it’s a great way to ensure your loved ones are protected.
Cons of AARP Life Insurance
- High Premiums for Larger Coverage Amounts While AARP’s life insurance is affordable for smaller policies, the premiums can rise significantly for larger coverage amounts. If you’re looking for higher coverage, be prepared for higher premiums than with other providers.
- Limited Coverage Amounts AARP’s life insurance policies have coverage limits that may not meet the needs of all individuals. For instance, the maximum coverage amount for permanent life insurance is just $25,000, which may not be enough for those who need more extensive coverage.
- Membership Requirement You must be an AARP member to apply for life insurance through the organization. While membership is inexpensive, it’s still an extra step compared to insurance companies that allow direct application without needing membership.
- Limited Policy Options While AARP offers life insurance, the variety of plans is relatively limited compared to other providers. You won’t find many customization options in terms of riders or additional benefits with AARP’s policies.
- Age Limits for Term Life Insurance AARP only offers term life insurance policies to people between the ages of 50 and 80. If you’re outside this age range, you won’t be able to access AARP’s term life insurance options.
Ratings and Reputation
AARP life insurance, underwritten by New York Life, generally holds strong ratings across the board.
- A.M. Best: A++ (Superior) – This indicates excellent financial strength, meaning the company is financially stable and will likely honor claims.
- Better Business Bureau (BBB): A rating – This reflects good customer service and a strong reputation in the marketplace.
- Consumer Satisfaction: Customer reviews for AARP life insurance are generally positive, with many praising the ease of the application process and the reliability of New York Life in paying claims.
Is AARP Life Insurance Good in 2025?
In 2025, AARP life insurance remains a strong option for seniors looking for basic life insurance coverage. It’s particularly well-suited for those who are older and may have difficulty qualifying for traditional policies due to health issues. The availability of no-medical-exam policies is a major perk, but the limited coverage options and potentially high premiums for larger coverage amounts are drawbacks to consider.
If you’re an AARP member over 50, and you’re looking for a straightforward and reliable life insurance plan, AARP life insurance could be a good fit for you. However, if you need higher coverage amounts or more flexibility, you might want to compare plans from other insurers.
Final Verdict: 4/5 Stars
AARP Life Insurance offers a reliable, simple, and affordable option for seniors who need life insurance, especially those looking for no-medical-exam policies. While it may not be the best choice for everyone due to its limited coverage options and potential for higher premiums on larger plans, it’s still a strong contender in 2025.
Disclaimer: This article is for informational purposes only and not financial advice. Life insurance options and rates vary, so consult a licensed agent to find the best plan for you. AARP life insurance is underwritten by New York Life.