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AARP Burial Insurance For Seniors: An Honest Review For 2022

Rikin Shah | Licensed Life & Health Insurance Agent

The 60-Second Summary
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Trust is extremely important in life insurance and AARP is one of the most trusted brands in the U.S. Moreover, they have two solid options for burial insurance; while slightly over-priced, their customer service is fantastic.

AARP Pros

AARP Cons

AARP Burial Insurance Reviews (3rd-Party)

Full Review Below.

AARP Final Expense Insurance

Founded in 1958 by a high school principal, AARP has grown to become one of the most trusted brands in the U.S.

While AARP is not a life insurance carrier itself, it has partnered with New York Life Insurance Company to sell life insurance products to seniors.

Company 101
TypeLife Insurance Agency
Websitehttps://www.nylaarp.com/life-insurance/
EmailNA
Phone(800) 288-9858
AddressP.O. Box 30712
Tampa, FL 33630
BBB RatingA-
A.M. Best RatingA++ (Superior)

Many life insurance companies sell burial insurance policies, including AAA Life, Mutual of Omaha, Globe Life, and many more.

However, few brands have the consumer loyalty and trust that AARP does.  And in selling something as personal as final expense insurance, this trust has allowed AARP to compete successfully in a crowded market.

Who Is New York Life?

Founded in 1845, New York Life Insurance Company is one of America’s largest mutual life insurance companies.  New York Life has 26 million active policyholders and $1.8 trillion in life insurance coverage in force.

New York Life is one of the few companies to earn A.M. Best’s very highest financial strength rating, an A++ (Superior).

What Is Burial Life Insurance?

Burial insurance (also known as final expense insurance or funeral insurance) is simply a whole life insurance policy with a payout sized to meet the typical cost of a person’s final expenses.

Burial Expenses Have Gone Through The Roof

The average cost of a funeral in the US is over $10,000, according to the National Funeral Directors Association.

The unaffordability of the traditional American funeral is the main reason 56% of Americans are cremated these days.

How easily will your loved ones be able to spare $10K for your funeral costs?

Not very many people could.  So it’s no surprise that Americans’ top reason for buying life insurance is to pay for their final expenses.

Burial Insurance: AARP

AARP funeral insurance comes in two varieties:

  • Guaranteed issue whole life insurance
  • Simplified issue whole life insurance

AARP Guaranteed Acceptance Life Insurance

AARP Guaranteed Issue Whole Life Insurance is a permanent life insurance policy available to AARP members aged 50 or over.

This product has guaranteed approval, no health questions asked, and an array of benefits, including the following policy riders:

  • Accidental death benefits rider: Pays your beneficiary 200% if you die as the result of an accident
  • Accelerated benefits rider: Pays out a portion of your death benefit early if you are diagnosed with a terminal illness
  • Waiver of premium rider: Waives your requirement to pay monthly premiums (in case you become disabled and cannot earn an income to support premium payments)
aarp logo
Guaranteed Issue Whole Life

AARP guaranteed issue life insurance policies have a two-year waiting period.

If you die of natural causes during this period, AARP will refund all premiums paid to date, with interest (at a 7-10% rate).

However, if you die from an accidental cause, your beneficiary always receives the full death benefit, even within the first two years of the policy.

AARP Whole Life Insurance Policies

AARP’s Permanent Life Insurance product is a simplified issue whole life insurance policy available to AARP members ages 50 and over.

With this product, there is no medical exam.  However, you will have to answer several health questions.  Your answers to these will determine whether or not you are approved.

aarp logo
Whole Life Insurance

AARP Funeral Expense Insurance: 3rd-Party Ratings

One of the best ways to size up a company is to look at its third-party ratings.

Financial Strength Ratings

The preeminent ratings company in the insurance industry is A.M. Best.

A.M. Best ratings measure an insurance company’s claims-paying ability.

New York Life, the carrier that issues AARP’s life insurance policies, currently holds a rare A++ (Superior) rating.

This is A.M. Best’s highest possible financial strength rating among its 19 separate rating categories (A++ to D).

Better Business Bureau (BBB) Ratings

The Better Business Bureau (BBB) is an organization that has been rating a company’s business practices since 1912.

The BBB provides tools for consumers to research companies and find reputable organizations they can trust.

While A.M. Best ratings are based on a life insurer’s financial performance, BBB ratings are based on the complaints filed against a company and provide an indication of customer service quality.

New York Life holds an A- rating from the BBB, while AARP carries an A+ rating.

Funeral Insurance AARP: FAQs

AARP burial insurance is permanent life insurance, available to AARP members between 50 and 80 years of age.  Policy death benefits range from $2.5K to $50K and your beneficiary can use your life insurance policy’s payout for any purpose whatsoever, including funeral expenses, cremation costs, or even unpaid medical bills.

Absolutely not. AARP burial insurance is permanent life insurance (whole life insurance), which means that your coverage never ends as long as you pay your premiums.  However, coverage under AARP’s term life insurance product DOES end at 80.  AARP guarantees its term life policyholders the option to exchange their coverage for permanent life insurance when they reach age 80. While your premiums may change, you will not have to take a medical exam or answer any health questions.

Absolutely. New York Life is a highly reputable life insurance carrier that has been issuing policies and successfully paying claims since 1841! That’s a track record of over 175 years. On top of this, A.M. Best, a company that rates insurance carriers’ ability to pay claims, gives New York Life its top rating, a rare A++ (Superior).

Conclusion & Key Takeaways

AARP is one of the best brands selling funeral insurance policies.

AARP’s track record of customer satisfaction is unmatched among American membership organizations, on par with AAA.  While your monthly premium payments may be slightly higher with AARP than with other funeral insurance companies, you can’t go wrong with AARP burial insurance.

We hope you enjoyed this AARP burial insurance review.  If you have any additional questions, don’t hesitate to leave a comment here or send us an email at hello@getsure.org.

Warm Regards,
The GetSure Team

  1. Better Business Bureau. 

    (n.d.). 

    New York Life Insurance Company. 

  2. AARP. 

    (n.d.). 

    AARP Guaranteed Life Insurance From New York Life. 

  3. AARP. 

    (n.d.). 

    AARP Permanent Life Insurance From New York Life. 

  4. AARP. 

    (n.d.). 

    AARP Term Life Insurance From New York Life. 

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