Might be wondering why life insurance for seniors above 90 is so important. As people of this age don’t need much coverage because they have grown-up kids and paid off their large debts like home loans or mortgages. Additionally, they also have some savings and assets that get them covered in any difficult time.
Then why is there a need for an insurance policy for such a senior person? Well! For seniors above 90, purchasing final expense insurance is the best option as it covers their funeral, burial, and other end-of-life costs. However, they can also consider some other policy types like AARP particularly if they have some debts from medical bills or may want to leave an inheritance for their loved ones.
In this blog post, we will explore whether it’s a good option to buy AARP life insurance for seniors over 90 years old. We will also discuss various life insurance plans available with AARP insurance.
AARP Life Insurance for Seniors Over
AARP life insurance program offered by New York Life provides coverage to seniors having pre-existing medical conditions or those who can’t qualify for some other life insurance plans. It does not require a medical exam from applicants. So unless and until you have some serious medical condition, you can get a policy at much cheaper rates for a Term Life Insurance Policy.
Being a senior if you are seeking a guaranteed acceptance plan, AARP offers you affordable quotes for Modified Whole Life Insurance. Somehow your death benefit will be limited to $50,000 or maybe less so you can use it for final expense coverage only. If you want coverage for your family, you have to look for something else.
The policies offered by AARP are either simplified issues or guaranteed acceptance so there is certain quick coverage for the policyholders. The main downside of this coverage is that the insurance providers assume applicants are at higher risk so they charge higher rates.
Conditions to Buy AARP Life Insurance for Seniors
To buy an AARP life insurance plan, you have to be a member of AARP (American Association of Retired Persons). This membership costs you from $12 to $16 a year based on your payment method. The minimum age requirement for membership qualification is at least 50. However, being a member of AARP you are eligible to buy AARP auto insurance and other perks like travel discounts.
AARP Level Benefit Term Life Insurance
Unless you have some serious pre-existing medical conditions, purchasing AARP’s level benefit term life insurance for seniors is not a good idea. The reason is that the plan’s rates are extremely high and increase with time. The level benefit means the death benefit of the plan remains the same while rates increase and the policy ends when the insured turns 80.
AARP Life Insurance Rates
The term life insurance for seniors coverage offered by AARP for its members is for those who are between 50 and 74. However, they are allowed to convert their policy into a permanent life insurance plan anytime during the coverage. The death benefits of this policy range from $10,000 to $150,000 which means you can’t cover large financial obligations like a mortgage. In addition, the payout of this policy is limited as it is insured without any medical exam.
No doubt, AARP’s term life insurance rates are very high, you should shop around and get multiple quotes for better rates. Based on your health conditions, age, height-to-weight ratio, and tobacco use, no-medical exam quotes for this policy may vary significantly.
AARP Whole Life Insurance for Seniors with No Medical Exam
Whole life insurance plans with no medical exam are generally expensive. Due to this reason, buying AARP simplified issue (type of whole life insurance) is not recommended unless you have some pre-existing conditions that restrain you from going through a medical exam. However, a senior with a medical condition for more than two years such as diabetes should go for this plan.
AARP Whole Life Insurance with no medical exam is a type of Burial Insurance because the coverage offered is only enough to cover end-of-life expenses. It offers a death benefit of $5,000 to $50,000 and is available for those who are aged between 50 and 80. Well, this coverage is enough to cover burial expenses and some minor debts, but not enough to cover some larger expenses. So if you want to cover any outstanding debts, you must consider other insurance companies.
Moreover, the plan comes with 2 amazing features to assist you financially if you become disabled or ill. These are:
1- Waiver of Premium
In case you move into a nursing home due to some illness or disability, you only have to pay monthly payments for six months.
2- Speedup Death Benefit
If some terminal illness is diagnosed in you and the physician says you are alive for less than 12 months, you can get up to 50% of the death benefit of the plan while you are still alive.
Also Read: Term Life Insurance Vs Whole Life Insurance
AARP Guaranteed Acceptance Whole Life Insurance
AARP Life Insurance for Seniors offers a guaranteed acceptance of whole life insurance. In this policy, the policyholder has to pay the same rate throughout the policy, without any end date. When the payments eventually reach above the coverage amount, he’ll stop making payments altogether. However, AARP guaranteed acceptance insurance plan is not available in Washington and New Jersey.
The maximum coverage amount of this plan is $25,000, the same as many other insurance companies’ plans. Again that payout would be enough to cover final expenses along with small debts like medical bills. But you can’t rely on this coverage if you have some dependents or want to inherit your insurance policy.
Additionally, if you die in between the first two years (waiting period) of the policy due to natural causes, the aligned beneficiary will not get the full death benefit. In that case, they will get 110% of the value of your premiums paid up until that point. However, in case of suicidal death, the policy will be void completely. Guaranteed acceptance insurance generally has a waiting period as the insurance provider doesn’t want to pay larger payments for a terminally ill patient’s plan.
Aside from it, this plan is the same as AARP’s whole life insurance for seniors plan, such as
- It provides coverage for applicants between 50 and 80.
- No medical exam is required.
- After turning 95, the insured has no longer payments to make while coverage remains in force.
- After getting terminally ill, you can use 50% of your death benefit when you are still alive.
If you don’t have a membership of AARP, there is no need to join it to get access to this policy as it offers the same coverage rates as its competitors. Competitor quotes are about equal with or maybe cheaper than those from AARP and don’t even demand any kind of membership.
New York Life, one of the largest and most trustworthy life insurers in the USA, manages and underwrites AARP life insurance for seniors.. So, if you’re considering buying an AARP plan, you can proceed without worrying about being scammed. Moreover, to reduce issues in the future, read all the queries from the application of AARP and answer them accurately. Also, let your beneficiaries know that it’s better to contact AARP directly if they are facing any issues during the claim process, instead of New York Life.
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