Our Verdict
4.7
While death is a part of life, it’s not something most people actively plan. Many families end up with sticker shock when they discover the average funeral costs $7,000 to $12,000.
Burial insurance from AARP lets you plan for these expenses and take the financial sting out of a loved one’s passing.
Burial insurance covers significant costs when you or a loved one dies.
Pros
Cons
Who Is AARP?
AARP (The American Association for Retired Persons) isn’t an insurance company.
It is a non-profit interest group dedicated to helping “people turn their goals and dreams into real possibilities.”
They have nearly 38 million members, all of who are older Americans.
Founders Ethel Percy Andrus and Leonard Davis started AARP in 1958. Members can join for a range of discounts across insurance, auto, and travel products for a $16 annual fee. AARP has an Aa3 debt rating from Moody’s, but no grades from Standard & Poor’s or Fitch. AARP also gives out its fair share of awards for community members and popular culture.
What Makes AARP Different?
Getting burial insurance through AARP is an attractive option if you can’t get insurance anywhere else.
The guaranteed issue whole life insurance does not require a medical survey or health questionnaire. You should consider burial insurance if you:
AARP offers three different policies with the most affordable option paying $25,000 in death benefits and having a minimum death benefit of $2,500.
Features and Benefits of AARP Burial Insurance
AARP offers three ways to cover final expenses: term life, whole life, and guaranteed life insurance.
The policies range in death benefits and selectivity. Here are overviews of each one, so you can make the right selection for your family.
Level Death Benefit Term Life Insurance
Those in search of the ultimate insurance coverage from AARP apply for term life.
The policy pays $10,000 to $100,000 in final expenses and is available for members in all 50 states.
It stands out as the organization’s flagship product and expires when the policyholder reaches age 80.
Term life insurance covers policyholders for a set period, which necessitates qualifications for who can apply.
You must be 50 to 74 years old to receive an AARP policy. Spouses can apply if they are 45 to 74.
AARP increases term life premiums every five years. The price hike depends on your original rate, death benefits, and health. AARP requires applicants to disclose underlying medical conditions.
You may not qualify if you’ve:
While level death benefit term life insurance has an attractive payout, it is not ideal for covering end-of-life expenses.
The death benefit isn't paid if the policyholder lives past 80.
The increasing premium especially stings because other companies offer policies with monthly premiums for half the price.
Simplified Issue AARP Whole Life Insurance
Simplified issue AARP whole life insurance provides $5,000 to $50,000 in death benefits.
It’s available to members in all 50 states between the ages of 50 and 80.
The policy terms never change, unlike term insurance, so premiums remain flat as long as you hold the policy.
AARP guarantees the death benefit from the day you take out coverage.
It does require a health survey to identify potential health complications and includes the same disqualifications as whole life insurance.
Prices start at $13 per month for women and $17 for men.
AARP Guaranteed Life Insurance
AARP guaranteed life insurance offers $2,500 to $50,000 in death benefits for members ages 50 to 80.
It is available in all states, except Washington and New Jersey.
The premiums and death benefits never decrease as long as you maintain monthly payments.
However, AAR guaranteed life insurance has a glaring caveat: a two-year waiting period.
Policyholders can’t receive a death benefit for a non-accidental death within the first two years of coverage. Prices start at $20 for women per month and $23 for men.
INSURANCE WHERE YOU LIVE
Life insurance by state.
" data-uw-styling-context="true">AARP Burial Insurance Availability
All three AARP burial insurance policies are available nationwide, with some minor restrictions for guaranteed life coverage.
Applicants need to be at least 50 years old, unless they are a spouse, in which case they can apply at age 45.
Term policies last up to 30 years, while whole life insurance only ends upon death.
Claims Process and Guarantee
It's worth noting that AARP doesn't sell insurance policies. New York Life supplies the policies, and AARP offers them to members.
When you need to submit a claim, you have to go through a joint website, www.nylaarp.com.
Start your claim by calling New York Life at (800) 695-5165 or downloading a claims packet.
The packet includes eight pages of information to process the death benefit and answers to frequently asked questions.
Make sure you have the deceased's contract number, date of death, and cause of death before starting.
Taking Action
Burial insurance rates through AARP may not be the cheapest, but they are accessible. You can getup to $25,000 without the hassle of medical questionnaires.
The policy covers essential post-life expenses, including funerals, ceremonies, and other related costs.
If you need burial insurance there is no need to wait around, click here to get some quotes from AARP via New York Life and get covered.
In This article