I can rant and rave all day long about the perverse way AARP treats its’ members with their insurance programs, and I do, but that’s just my professional opinion.
I recently received a personal opinion from a person whose mother is an owner of one of the AARP/New York Life insurance policies. In his words, “I recently found out that my mother has been paying monthly for an life insurance policy through AARP. My sister and I will each received $5,000 at her death. She has already paid them nearly $14,000 for this $10,000 policy. If she lives another 10 years, they will have received double that. She could have been putting that money in just a pathetic savings account and had a better return. AARP is ripping off their members and should be ashamed.”
I think one step further than being ashamed. Personally I think they should be required to discontinue sales of these horrendous products and refund all the money paid in for those who still have these policies in force. I’ve said it before. If this wasn’t AARP and was just some group out there preying on the elderly in our society with these awful products, they would be out of business and likely in jail.
Bottom line. If you have parents that have purchased AARP insurance of any type, get a professional second opinion. AARP has managed to weasel their way into a position of trust that they don’t deserve and they are ripping off anyone they can.
I agree with your “bottom line”. It’s wrong for AARP to position itself as a senior advocacy group and then continue to endorse/recommend inferior products and services. Ed, have you ever figured out who gains at AARP by pushing this slop? Isn’t it a non-profit organization. I know NYLife’s incentive to do this, but why AARP?
I don’t agree that premiums should be refunded as ultimately every member of AARP makes the decision to buy those products and make that payment every month. Did she get the best product for her money? Nope. In hindsight would she have been better off sticking that money in a jar. Sure. But if she would have died after making one premium payment her kids would have gotten those $5,000 checks. She’s covered every month she makes a payment and so she should pay for that coverage.