AARP is a non-profit organization that offers a variety of programs for people aged 50 and over. It was founded in 1958 by Dr. Ethel Andrus. It evolved from NRTA (National Retired Teachers Association), which had been founded by Dr. Andrus in 1947 to deal with the AARP life insurance needs of retired teachers. At that time, there was virtually no private insurance for the elder generation. There was an outcry from thousands of people who weren't retired teachers over their exclusion from NRTA benefits. That inspired Dr. Andrus to come up with an organization that would serve all Americans ten years later. NRTA became a division within of the company.
AARP life insurance plans gained an international presence in 1963 by founding ARPI (Association of Retired Persons International), with offices in Washington, D.C. and Lausanne, Switzerland. It was disbanded six years later. Over the years, the company has developed worldwide networks to promote the welfare of the elder generation internationally. Currently, the organization has more than 37 million members.
Although AARP’s vast membership enables it to generate its own income without over-reliance on the government and private donors, it still receives financial grants to facilitate particular programs. According to this company’s Consolidated Financial Statement in 2015, its largest sources of income include;
- 1.) The royalties it earns from the rights to use AARP’s intellectual property
- 2.) Membership dues which add up to an outstanding ($295,180,000)
- 3.) Advertisements that it places on all its numerous publications earns close to ($149,604,000).
With stable sources of income, members can be assured that they will promptly receive any benefits owed to them within the stipulated period.
Types of AARP Life Insurance
Before delving into the specifics lets first briefly look at how AARP life insurance policies work. It’s very simple, when a person buys life insurance, they pay premiums. In return, AARP agrees to pay death benefits to the beneficiaries you choose. This company provides this valuable protection at an affordable cost, regardless of age.
How much life insurance does one really need?
According to the experts, you can determine how much you need by taking a look at the resources that your beneficiaries already have such as social security, savings, and pension. Then think of the final expenses that your beneficiaries may have to deal with in your absence such as medical bills you may leave behind, funeral costs, utilities and any other ongoing costs your beneficiaries will need to maintain a quality lifestyle.
All AARP life insurance policies are only available to members. There are four types of coverage:
- 1.) Level Benefit Term
- 2.) Permanent
- 3.) AARP Guaranteed Acceptance
- 4.) Young Start.
Here's what each one of them has to offer. You can get additional life insurance tips to ensure you get the best deal.
Level Term Benefit
AARP Level Term Life Insurance benefit provides coverage of $10,000 to $100,000. It is available to members aged 50 to 74 and spouses aged 45 to 74. The application process involves little paperwork. You can apply online or by mail. You'll not be required to take any medical exam. Acceptance is determined by the answers you, as a member, give to three health questions and other personal information you provide or give the organization permission to acquire. There's no waiting period. Once you're approved, you'll be covered for the full coverage amount. You can switch from Level Term Benefit to AARP Permanent Life Insurance at any time without having to take a medical exam. It's also important to note you can compare AIG life insurance and Gerber life insurance quotes from other top companies as well. It's smart to shop around. Rates will be determined by your age at that time.
With the Level Term AARP life insurance benefit, your benefits won't decrease even if your health deteriorates. Coverage can only be cancelled with your consent. You'll receive protection until age 80 provided you pay premiums on time, and there are no misrepresentations about your medical history on your Enrolment form.
Premiums are age-based. They are arranged in five-year age bands. They increase each time you enter a new age band. After 180 consecutive days of confinement to certain nursing homes, your premium payments will be waived for the duration of the confinement. Coverage will still continue during that period.
In a nutshell, the advantages of the level term life insurance plans include;
· No medical tests are required to qualify; all you have to do is provide basic health information
· This is an affordable option that lasts until the ripe age of 80 years old
· Any person who has signed up to the level term life insurance scheme is entitled to $100,000 in protection between the ages of 50 and 74
· The level term life insurance plan is the best way to ensure you get the most coverage for lower premiums now, provided you clearly understand from the get-go that the rates will go up as you advance in age.
Permanent AARP Life Insurance
This plan provides coverage of up to $50,000. It is available to AARP members aged 50 to 80 and spouses aged 45 to 80. It will take you a few minutes to apply, and you can do it online or by mail. You are not required to undergo a physical examination or any medical test. Acceptance is only determined by the answers you give to three health questions. There's no waiting period so you'll be covered for the full benefit amount once you're approved.
The coverage lasts your entire lifetime. Once you attain the age of 95, you'll stop paying monthly premiums. However, coverage will continue no matter how long you live. You can borrow against the cash value of your permanent life policy.
AARP life insurance quotes premium will be determined by your age at the time of application. Once you're approved, they'll never increase. Your benefits won't decrease provided you pay premiums on time, and there are no misrepresentations about your medical history on your Enrolment form. The cover offers a waiver of premiums due to confinement to certain nursing homes similar to the Level Term Benefit cover.
Benefits of the permanent AARP life insurance plans
- Any person signed up to this insurance program is entitled to up to 50,000 in protection from the age of 50 to ages 80
- An AARP member signed to this life insurance program is guaranteed affordable coverage for their entire life
- It is extremely easy to sign up to as there are no extensive medical tests required, all you are required to do is answer just 3 health questions
Why select Permanent Life Insurance?
This is the best option for you if you are looking to build a cash value that accumulates over time without being subjected to premiums that go up as you age.
Guaranteed Acceptance provides coverage of up to $25,000. It is available to all AARP members aged 50 to 80 and spouses aged 45 to 80. The application process is simple and can be done online or by mail. Acceptance is guaranteed. There are no health questions or medical exams.
AARP life insurance premiums are determined by your age at issue and will never increase. Because of guaranteed acceptance, the premium includes an additional mortality risk charge. The benefit period is also limited. During the first two years of coverage, death by natural causes only pays an amount equal to 125% of the premiums you'll have paid by then. In the case of accidental death, the full benefit amount is paid. The cover lasts your entire lifetime as long as premiums are paid on time. After the first two of years of coverage, your benefits will never decrease
Benefits of the Guaranteed accepted life insurance plan to members
This kind of AARP life insurance policy is typically used for people who are looking to cover funeral and final expenses. This is because the AARP Guaranteed issue policy comes with a two year graded death benefit. This simply means that for you to qualify, you have to at least survive for two years from the time the policy begins before any of your beneficiaries becomes eligible to receive the death benefits. The policy face amounts in this life insurance plan include $2,500, $5,000, $10,000 and $ 15,000 in death benefits.
Level Term Benefit, Permanent and Guaranteed Acceptance covers have some common features. They include:
30-Day Guarantee - All the three AARP life insurance types quotes come with a 30-day money back guarantee. If you're approved and don't find the covers to be favorable, you can get a refund if you return them within 30 days.
Accelerated Benefit - If your life expectancy is established to be 12 months or less (24 months in Texas and Illinois) due to a terminal illness, you can receive half of the benefit amount. This feature is not available in Massachusetts.
AARP Higher Coverage Option - Higher coverage options of over $100,000 are available.
Exclusion - No AARP life insurance benefits will be paid if death is caused by suicide during the first two years of coverage (one year for North Dakota and Missouri residents).
Young Smart - provides coverage of up to $20,000 for your child or grandchild. It is available to all AARP members aged 50 to 80 for their children or grandchildren aged 17 years or less. Acceptance is determined by three health questions for each child (four for Florida residents). You are not required to take any medical tests. The cover comes with a 30-day money back guarantee.
Children can keep the cover for their entire lifetime. When they become adults, they'll pay premiums based on the low childhood rates. If you die before the child is 21, premiums will be waived until he or she attains 21. No benefits will be paid if you die from suicide within the first two years of coverage.
What are some of the benefits of the Young Start AARP life insurance program?
· No complicated or extensive medical tests are required to qualify - When applying for this life insurance program, customers do not have to take physical or medical tests to be approved. Acceptance is solely based on the answers you provide to 3 simple health questions except in Florida where there are 4 health related questions
· It comes with an extremely valuable premium waiver feature
These AARP life insurance quotes and services include a valuable feature that guarantees members uninterrupted coverage if you pass away while the insured child is still under the age of twenty one. This premium waiver is in effect for 2 years prior to death; further premiums are effectively waived for every child until they turn 21. Once the insured child turns 21, they can either terminate the insurance scheme or continue paying the premiums.
· Comes with a 30 day guarantee - Once this type of coverage is approved, a person receives a certificate of Insurance. However, if a person decides that this insurance plan is not a great fit for them, they can simply return it within 30 days and receive a full refund of any premiums that have been paid.
There is only one exclusion which is if death results from suicide within the first two years. In this case no benefits are paid.
- 1.) Level Benefit Term