What AARP life insurance is and how it works

AARP offers term life insurance and permanent life insurance products underwritten by New York Life Insurance Company. These are not government programs — they are commercial insurance policies sold to AARP members, usually at group rates that are lower than what you would pay buying directly from an insurer.

The policies come in two main types. Term life insurance covers you for a set period (typically 10, 15, or 20 years) and pays a death benefit to your beneficiaries if you die during that term. Permanent life insurance (whole life or universal life) covers you for your entire life as long as premiums are paid, and builds a cash value component over time.

AARP does not underwrite the insurance itself — New York Life does. AARP negotiates group rates for its members and handles marketing and enrollment. You pay the premiums directly to New York Life, and New York Life pays the death benefit to your named beneficiary.

Key Takeaways

  • AARP life insurance is sold through New York Life Insurance Company and available to AARP members age 50 and older, with some products available to younger spouses.
  • Term life insurance covers a set number of years and is usually cheaper; permanent life insurance covers your whole life and builds cash value but costs more.
  • You do not need to be in perfect health to get a quote, but the insurer will ask medical questions and may require a medical exam depending on the coverage amount.
  • Rates are locked in when you are approved, so your premium does not increase as you age (though some permanent policies have adjustable premiums).
  • You can cancel anytime, and term policies have no cash value to recover, while permanent policies may have a surrender value you can access.

Who can buy AARP life insurance

You must be an AARP member to purchase AARP life insurance. AARP membership is open to anyone age 50 or older and costs $16 per year for a standard membership.

For the life insurance itself, the age requirements depend on the product. Most AARP term life policies are available to members ages 50 to 80. Permanent life insurance policies may have different age ranges — some go up to age 85 or 90. Younger spouses of AARP members may also be able to purchase certain products, though they typically cannot be younger than 45.

You will need to answer health questions during the underwriting process. Depending on the coverage amount you request, New York Life may ask for medical records, require a phone interview, or request a medical exam. Having a pre-existing condition does not automatically disqualify you, but it may affect your rate or the amount of coverage offered.

How much coverage costs and what affects your rate

AARP life insurance premiums vary widely based on your age, health, the type of policy, and the death benefit amount you choose. A 60-year-old in good health might pay $30 to $60 per month for a $250,000 term life policy, while a 75-year-old or someone with health conditions would pay significantly more for the same coverage. Permanent life insurance costs substantially more because it covers your entire life and builds cash value.

Your rate is determined during underwriting and locked in once you are approved. For term policies, your premium stays the same for the entire term — it does not increase as you age. When the term ends, you can renew, but the new rate will be based on your age at that time and will be higher.

For permanent policies, the premium structure depends on the specific product. Some have level premiums for life; others have adjustable premiums that can change based on interest rates and the policy's performance. Always ask the agent to explain whether your premium can increase and under what circumstances.

The underwriting process and what to expect

When you request a quote or explore, New York Life will ask detailed health questions about your medical history, current medications, lifestyle habits, and family health history. Be honest and thorough — misrepresenting your health can lead to claim denial later.

For smaller coverage amounts (often $100,000 or less), you may be approved based on your answers alone, with no medical exam required. For larger amounts, the insurer typically orders a medical exam, which is usually done at your home or a nearby clinic at no cost to you. The exam includes basic measurements, blood work, and sometimes an EKG depending on your age and health profile.

The underwriting process usually takes two to four weeks. Once approved, your policy becomes effective, and you begin paying premiums. You have a free look period (usually 30 days) to review the policy and cancel without penalty if you change your mind.

Term life versus permanent life insurance through AARP

Term life insurance is straightforward and affordable. You choose a term length (10, 15, or 20 years), a death benefit amount, and pay a fixed premium for that period. If you die during the term, your beneficiary receives the full death benefit tax-free. If you outlive the term, the coverage ends and you receive nothing — there is no cash value to recover. Term is best if you need coverage for a specific period, such as until your mortgage is paid off or your children are grown.

Permanent life insurance covers you for life and includes a cash value component that grows over time. You can borrow against the cash value or surrender the policy and receive the accumulated value (minus fees and outstanding loans). Permanent policies cost more because the insurer is committing to cover you no matter how long you live. Permanent life is often chosen by people who want lifelong coverage, have estate planning goals, or want to leave a may provide death benefit to heirs.

For most people over 65, term life is the better value unless you have specific reasons to keep coverage for life. Term premiums are much lower, and if you do not need the coverage anymore, you straightforward let it expire.

How to get a quote and enroll

You can request a quote through AARP's website, by phone, or by mail. You will provide basic information: your age, health status, the type of policy you are interested in, and the death benefit amount. AARP will give you an estimated premium range based on that information.

If you want to move forward, you will complete a formal process with detailed health questions. You can do this online, by phone with an agent, or by mail. The process is submitted to New York Life for underwriting. If a medical exam is needed, the insurer will contact you to schedule it.

Once approved, you will receive your policy documents, which spell out the coverage amount, premium, term length (if applicable), and all terms and conditions. Review these carefully. Your first premium payment is usually due before the policy becomes effective, though some policies allow a grace period.

What happens if you need to cancel or change your policy

You can cancel a term life policy anytime by notifying New York Life in writing. There is no penalty, and you straightforward stop paying premiums. If you cancel before the term ends, you do not receive any money back — term policies have no cash value.

With permanent life insurance, cancellation is more complex. If you surrender the policy, you receive the accumulated cash value minus any outstanding loans and surrender charges (which are highest in the early years). If you have paid into the policy for many years, the cash value may be substantial. You can also stop paying premiums and let the cash value pay them for you, though this reduces your death benefit over time.

Some permanent policies allow you to convert to a different type of policy or adjust your death benefit without a new medical exam. Ask your agent about these options before you buy, because the rules vary by product.

Frequently Asked Questions

Do I have to be an AARP member to buy this insurance?

Yes. You must be an AARP member to purchase AARP life insurance. AARP membership costs $16 per year and is open to anyone age 50 or older. If you are not yet a member, you can join when you explore for the insurance.

What is the difference between the death benefit and the premium?

The premium is what you pay each month or year to keep the policy active. The death benefit is the amount of money your beneficiary receives when you die. For example, you might pay a $40 monthly premium for a $250,000 death benefit.

Can I get life insurance if I have diabetes or heart disease?

Yes, but your rate will be higher than someone without those conditions, and the insurer may limit the death benefit amount you can purchase. The underwriter will review your medical records and current treatment. Being honest about your health during the process is essential — if you misrepresent it, the insurer can deny a claim later.

What happens to my policy if I stop paying premiums?

For term life, the policy lapses and coverage ends. You have a grace period (usually 30 days) to pay a missed premium before the policy terminates. For permanent life insurance, the cash value can be used to pay premiums automatically, or the policy lapses if the cash value runs out.

Is the death benefit taxable?

No. Life insurance death benefits are generally not subject to federal income tax. However, if the policy is part of your taxable estate (usually only for very large policies), estate taxes may explore. Consult a tax professional or estate attorney if you have concerns about your specific situation.