If you’re over age 50 you get mail from AARP at least twice a month, if not more, inviting you to become a member and/or just partake of all the great deals they offer even if you’re not a member. If you, your parents, family or friends have fallen for the quick and easy pitch for “New York Life’s AARP Life Insurance Program”, it’s time to review what you’ve done and get out sooner rather than later. They dominate senior life insurance through their brand, but there is nothing trustworthy about AARP life insurance rates for seniors.
It still boggles the mind how they NAIC, National Association of Insurance Commissioners, allows an organization like AARP to run rampant and rip off the elderly. If AARP wasn’t so well branded and so big, they wouldn’t get away with it. I assure you that if I started Special Ed’s Colorado Insurance Company For Old Folks, and offered the same products I would be taken down at the state approval process. The exact same products would meet with scorn and contempt from state insurance commissioners. It’s a rip off. Maybe a little jail time just to make sure I understood how far over the boundaries of decency I had gone.
As I once again lay out the case that AARP life insurance is a rip off, let it be known that I am not alone. Even those who aren’t insurance agents and don’t know the intricacies of the game New York Life is playing, see right through it. Unfortunately for many it is too late. Money has been wasted. Insurance has been lost due to the built in price increases and claims are not being paid or paid in a timely manner.
The truth is that the advertising makes it sound easy and guaranteed to be approved. It isn’t. It makes it sound like a reasonably priced product. It isn’t. Even with health problems, the average older person (65+) can generally get life insurance for half the cost with a lifetime level premium guarantee (AARP term insurance goes up every 5 years), just by answering the health questions and taking an exam. The “no exam” and “no questions” pitch is designed to make people believe that if they have to admit their health they won’t get insurance. That is almost always false and if you are in poor enough health to be declined by a traditional life insurance company, you will also be declined by AARP.
Bottom line. If you or your parents or anyone you know is considering AARP life insurance rates for seniors, apply for traditional insurance and compare the outcome. Keep the policy in force that makes sense.
My mother has an AARP life insurance policy that willl pay out $10,000 when she dies. Up to this point, she has paid them around $16,000 and will continue to pay until she dies. AARP should be ashamed of the way they are taking advantage of her and other seniors.
This is exactly my concern with people who accept guaranteed or simplified issue whole life insurance when they don’t need to. Most AARP applicants will qualify for traditional insurance at much lower prices.
My parents both died in 2009. My parents paid into AARP for as long as I can remember. I just heard that they were trying to find someone that is related, in order to pay their claim. The attention was to a Brenda that is not nor never have been related. I am the Executor of their personal affairs. My question since I am the Executor, does that over ride any benaficanry on the case? A letter has been sent out, and I am waiting to recover it, after it had been taken to several different indivuals. Why can’s they use the county recorders office to find family? The letter states $150,000.00 and that I need to submit certified death certificates, which is not a problem. Where do I start? Please help.
Jena,
Pretty complicated. I can tell you that the executor can’t over ride the named beneficiary unless the policy was taken out after you were their executor. There are some details I don’t understand. Please call me if you want to discuss further.
Since I last commented, my mother passed away. We filed the claim and got the check. My question is why did I find on their website that the permanent life policy costs $65.36 a month for a 70 year old. My mother was 70 when she took out the policy in 1996 and her monthly premium was $85.10. I find it hard to believe that the rates have dropped. Does anyone know where I could find the 1996 rates for New York Life? I suspect someone pulled a fast one on her. My sister and I each got $5,000 and the insurance company got $6,000 plus whatever the interest was that they earned. I would have been happier if my mother had put the money in a savings account and used the $6,000 for whatever she wanted.
Lou,
Not unreasonable to believe a rate drop in the last 15 years. The thing that I think stinks is that they didn’t pass that rate savings on to their in force customers. They have the right in their policy to change the rates but the only change I’ve ever seen is up for in force policy owners.
The other possibility is that she was 71 when she took it out and that would have been a higher rate.
The 1996 rates are what she was paying. I don’t think anyone pulled a fast one on her or you. Was it a good deal? She would have been much better off buying traditional life insurance rather than a final expense AARP/New York Life piece of junk.
Thanks for your reply. I feel a little better, but I hate that she could have done better for herself. My share will go for funeral expenses even though she had a paid up plan. She decided that she didn’t like the look of the funeral home and we moved to another which accepted her plan, but cost us several thousand dollars more. At least,we won’t be in debt. Thanks again!