Formerly called “American Association of Retired Persons,” now shortened to “AARP,” is a renowned name in the realm of life insurance and burial expense services. AARP is not a life insurance company but a 175-year-old interest group offering fully underwritten life insurance via registered agents such as AARP Life Insurance.
There are two types of permanent life insurance available to seniors through the AARP Life Insurance Program, but the most common is the mailed-to-you AARP Level Benefit Term Life. Despite its popularity and various life insurance policies, people have their doubts about the organization. With AARP’s exorbitant rates in comparison to the competition, many people are learning the hard way that it’s not the best option if they’re on a budget.
Let’s explore further to see if AARP’s burial insurance plan is a good fit for you.
AARP’s Level Benefit Term Life Coverage
People between the ages of 50 and 74 are the best candidates for term life insurance. This insurance policy does not involve a medical exam, but you will have to disclose some aspects of your medical history to be eligible.
A term life insurance policy can provide you with up to $100,000 in protection. The AARP’s Term Life Insurance is a great choice if you’re shopping for affordable monthly payments. However, note that Term Life insurance does not offer the security of fixed rates, and monthly payments will grow every 5 years.
Moreover, the average person normally outlives term life insurance coverage, so buying this type of policy as burial insurance in Houston is a massive risk. Once you outlive a term life insurance policy, the death benefit will no longer be there to cover final expenses like cremation or burial. This is why most Houston life insurance companies don’t recommend term life coverage for funeral planning or end-of-life expense management.
Note: A policyholder can change their term insurance to whole life as long as they do it before their 80th birthday. The coverage will be less and the premiums much higher than they would if the individual had started out with a whole life policy.
AARP’s No Medical Exam Whole Life Insurance
Burial insurance from AARP is a permanent life insurance policy open to members aged 50 to 80. There are only three health-related questions on the application that you must answer to be eligible for coverage.
This form of whole life insurance is a simple and effective approach to supporting your loved ones with unexpected medical bills and final expenses. Moreover, the cash value can be used to pay for late life insurance premiums or emergency expenses.
The premiums for permanent life insurance, especially those that don’t cover medical expenses, are always more expensive. Hence, we won’t suggest the simplified issue whole life insurance offered by the AARP and New York Life unless you already have a health problem that would make it impossible for you to clear the medical exam. But if you’re a senior with a chronic but manageable illness like diabetes, their whole life insurance policy may be a good choice.
AARP’s Guaranteed Issue Life Insurance
The guaranteed insurance policy has the same lifetime coverage and maximum benefit of $20,000 as permanent life insurance, but there is a 2-year waiting period. Plus, there’s no need for a medical exam, and your rates will never go up. There are no mandatory health exams, but a premium is added for the increased mortality risk.
This plan is open to everyone, but there’s a catch: if you pass away within the first year, you won’t receive any payouts. When compared to the other two plans, it delivers the most value for money. Still, there are other businesses that offer the same products at a lower price.
How to Get the Best Burial Insurance Coverage in Houston, TX
AARP’s funeral insurance isn’t the best option if you’re looking for a policy to cover your final expenses, especially if you have a history of health problems. Independent firms like Franklin Life and Annuity are where the best burial insurance policies are sold.
Your best bet is to consult an independent life insurance agency in Houston, like Franklin Life and Annuity. Our team will do price comparisons and work with the most reliable life insurance companies in your area to get you comprehensive yet affordable coverage.
Call us at (281) 688-8166 if you or an aging loved one are in need of funeral and burial expense insurance. We work exclusively with the top life insurance companies in Houston, Texas, and our services cover everything from life insurance to funeral planning.