Written by Anthony Martin Fact Checked by Jeff Root & David Duford
Anthony Martin
Anthony Martin is a nationally licensed insurance expert with over ten years of experience and has personally served over 10,000 clients with their life insurance needs. He frequently authors entrepreneurial and life insurance content for Forbes, Inc.com, Newsweek, Kiplinger, and Entreprenuer.com. Anthony has been consulted as an expert life insurance source for dozens of high-profile websites such as Forbes, Bankrate, Reuters, Fox Business, CNBC, Investopedia, Insurance.com, Yahoo Finance, and many more.
Jeff Root
Jeff Root is a nationally licensed life insurance expert with over 15 years of experience. He has personally helped over 3000 clients with their life insurance needs. Jeff is a best-selling Amazon author and the managing partner of a highly successful insurance brokerage that manages over 2,500 licensed insurance agents across the USA. He has been a featured life insurance source for prestigious websites such as Forbes, Bloomberg, MarketWatch, Nerdwallet, and many more.
David Duford
David Duford is a nationally licensed insurance expert with over ten years of experience. He has personally helped more than 1500 clients buy life insurance. David has been featured as an expert source for highly authoritative publications such as A.M. Best and Insurancenewsnet. He also runs one of the largest Youtube channels to help aspiring insurance agents serve their clients better.
Fact Checked
This article has been thoroughly reviewed by the author and third-party life insurance experts to ensure it adheres to our quality standards for accurate and honest advice.
Learn more about our editorial standards.
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As a licensed insurance agency, Choice Mutual is committed to integrity in our editorial standards and transparency in how we receive compensation from our insurance partners.
Editorial Disclosure
Our mission is to provide credible content written and fact-checked by verifiable experts to educate consumers like yourself. All content is regularly updated and reviewed to ensure the highest degree of accuracy. We do earn a commission from the sale of insurance products seen on this website. That said, our evaluations, commentary, opinions, and recommendations are not influenced by monetary gain. We always suggest what’s best for each customer rather than what makes us the most money.
Learn more about our editorial standards.
Compensation Disclosure
As an independent insurance agency, Choice Mutual gets paid a commission from our insurance partners every time we sell a policy. Without us, the insurance companies would not have a customer. Your policy does not cost more because we helped you, and our advisory services cost you nothing. The exact amount we get paid for each sale varies depending on the applicant’s age, health, and the specific product applied for. We never recommend products based on which one pays us the most. We suggest products based on the needs and desires of the applicant. It’s also worth noting that we pay our sales agents a salary rather than on a commission-only basis. Choice Mutual does not earn money via selling sales leads or data to third parties, referring users to other websites, displaying ads on our website, or other means.
Learn more about how we make money and other FAQs.
Licensing Disclosure
Choice Mutual is a licensed insurance agency authorized to sell insurance in all 50 U.S. states, including D.C. You can verify our license and lines of authority on our licenses page.
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Overall Score
Choice Mutual’s ratings are determined by a review formula that weights the following four factors to determine a score between 0 and 5:
| Factor | Score Value |
| Price of Coverage | 40% |
| No-Waiting-Period CoverageNo Waiting Period | 20% |
| Financial Strength | 20% |
| NAIC Complaint Index | 20% |
| Overall Maximum | 100% |
Our ratings are tested with scoring model 1.1, a review formula that ensures consistency and accuracy in our assessments.
3.25 out of 5
Rating methodology
3.0
Price of Coverage
Price of Coverage
40% of overall score
Using this quote calculator, we compare the price of the insurer’s coverage to competitors with equivalent products. The score they receive is based on how close their price is to those three least expensive providers:
- 50-5% more expensive
- 46-10% more expensive
- 311-20% more expensive
- 221-30% more expensive
- 1≥ 40% more expensive
Download price audit
2.0
No-Waiting-Period CoverageNo Waiting Period
No-Waiting-Period Coverage
20% of overall score
This scoring factor assesses whether an insurer offers coverage with no waiting period and, if so, how difficult it is to qualify for it. If an insurer does not provide coverage with no waiting period, it gets an automatic 1. A score from 2 to 5 indicates that immediate coverage is possible, and the higher the rating, the easier it is for the average applicant to qualify for it.
- 5Most applicants qualify
- 4Fairly easy qualification
- 3Somewhat difficult qualification
- 2Very difficult qualification
- 1No-waiting-period coverage unavailable
5.0
Financial Strength
Financial Strength
20% of overall score
Our financial strength scores are based on A.M. Best’s Financial Strength Ratings (FSR), which measure an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores they receive are based on the following scale:
- 5Superior (A+ or A++)
- 4Excellent (A- to A)
- 3Fair/Good (B- to B++)
- 2Weak/Marginal (C- to C++)
- 1Poor (D or Not Rated)
5.0
NAIC Complaint Index
NAIC Complaint Index
20% of overall score
The NAIC (National Association of Insurance Commissioners) complaint index measures how frequently an insurer obtains consumer complaints relative to a median score across all insurers. Our scoring model is based on an insurer’s NAIC complaint index for the most recently available year and for ‘Individual Life’ products:
- 50.0 - 1.0 (avg or below avg complaints)
- 41.01 - 1.5 (slightly above avg complaints)
- 31.51 - 2.0 (up to 2x avg complaints)
- 22.01 - 3.0 (up to 3x avg complaints)
- 1≥ 3.01 (more than 3x avg complaints)
Rating methodology
Most AARP final expense insurance plans expire at age 80, and the premiums increase every five years. AARP has permanent coverage but is costly compared to other insurance providers, and it typically has a two-year waiting period. For most seniors, other companies can offer lower prices and immediate coverage.
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Pros
- You can see quotes and buy online.
- No medical exam is required to qualify.
- Policies are underwritten by New York Life, which has the best financial ratings possible.
Cons
- It is very hard to qualify for no waiting period coverage
- Rates are higher than most of their competitors
- There are no options for seniors over 80.
AM Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The scores range from A++ to D-.
Moody’s Investors Service rates the creditworthiness of companies. The Moody’s Rating Scale has 21 possible scores ranging from “Aaa” (highest mark) down to “C” (lowest mark).
S&P Global Inc. issues credit ratings on a scale from “AAA” (highest rating) to “D” (lowest rating).
Customer Review Ratings
Consumer Protection Organization Scores
The Complaint Index compares a company’s performance to other companies in the market. The National Complaint Index is always 1.00. That means a company with a complaint index of 2.00 is twice as high as expected in the market. Reported scores are for the most recently available year and for “Individual Life” products.
A+
Not Accredited
The BBB rating is based on information BBB is able to obtain about the business, including complaints received from the public. BBB seeks and uses information directly from businesses and from public data sources. BBB assigns ratings from A+ (highest) to F (lowest). If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints.
Policy Type
Whole Life
New Applicant Age Range
50-80
Death Benefit Options
$5,000-$50,000
States Where Available
All
Builds Cash Value
Yes
Has Health Questions
Yes
2-Year Waiting Period
No
Medical Exam Required
No
Age When Policy Expires
Never
Prices Increase
Never
Terminall Illness Rider
No
Policy Type
Whole Life
New Applicant Age Range
50-80
Death Benefit Options
$5,000-$25,000
States Where Available
All
Builds Cash Value
Yes
Has Health Questions
No
2-Year Waiting Period
Yes
Medical Exam Required
No
Age When Policy Expires
Never
Prices Increase
Never
Policy Type
Term Life
New Applicant Age Range
50-74
Death Benefit Options
$10,000-$150,000
States Where Available
All
Builds Cash Value
No
Has Health Questions
Yes
2-Year Waiting Period
No
Medical Exam Required
No
Age When Policy Expires
80
Prices Increase
Every 5 years
AARP is a senior advocacy group that regularly lobbies government officials regarding senior-related issues. It is not an insurance company; instead, it partners with insurance companies to market various insurance lines to its members. New York Life is the sole provider of life insurance products to AARP members.
Founding Year
1841
Official Website
www.newyorklife.com
Headquarters
51 Madison Ave New York, NY 10010
Phone Number
800-225-5695
How Does AARP Final Expense Insurance Work?
AARP offers three types of policies for final expense needs- Term life, permanent whole life, and guaranteed acceptance whole life. All plans don’t require a medical exam, and they all pay out a tax-free cash benefit to your loved ones, which they can spend on anything (not just funeral expenses).
Guaranteed acceptance
The guaranteed acceptance option is a whole life policy with no health questions. You’re guaranteed approval regardless of any pre-existing conditions. Because there are no health questions, there’s a two-year waiting period before you’re insured for natural causes of death. Any non-accidental death during the first two years will only result in a refund of your premiums.
Permanent whole life
This whole life policy is permanent life insurance with a fixed premium. To qualify, you must complete a health questionnaire. If you’re approved, there is no waiting period. There’s also an option (for an additional cost) to buy this policy with “living benefits” that would allow you to access up to 50% of the death benefit if you develop a chronic illness for at least 90 days.
Term life
Term life insurance is the most common type of policy AARP promotes. The price increases every five years and completely terminates on your 80th birthday. When you turn 80, the policy ends, and you don’t get your money back. To qualify, you must answer questions about your health history.
How Much Does AARP Final Expense Insurance Cost?
The cost of an AARP burial insurance policy could be as low as $12 per month or as high as $500. AARP life insurance rates depend on factors such as age, gender, coverage amount, state of residence, and health.
Below are some rate tables with sample burial insurance quotes for every AARP life insurance policy.
Guaranteed acceptance
| Age & Gender | $10,000 | $25,000 |
|---|---|---|
| Female age 50 | $45 | $110 |
| Male age 50 | $59 | $88 |
| Female age 55 | $52 | $129 |
| Male age 55 | $69 | $169 |
| Female age 60 | $60 | $147 |
| Male age 60 | $80 | $199 |
| Female age 65 | $72 | $177 |
| Male age 65 | $91 | $225 |
| Female age 70 | $87 | $215 |
| Male age 70 | $108 | $268 |
| Female age 75 | $100 | $248 |
| Male age 75 | $123 | $306 |
| Female age 80 | $112 | $278 |
| Male age 80 | $145 | $360 |
| Source for monthly prices: Choice Mutual quote calculator. Data retrieved on 07/01/2024. | ||
Whole life
| Age & Gender | $10,000 | $25,000 |
|---|---|---|
| Female age 50 | $24 | $55 |
| Male age 50 | $33 | $77 |
| Female age 55 | $30 | $68 |
| Male age 55 | $42 | $99 |
| Female age 60 | $36 | $83 |
| Male age 60 | $50 | $118 |
| Female age 65 | $47 | $109 |
| Male age 65 | $62 | $150 |
| Female age 70 | $62 | $148 |
| Male age 70 | $81 | $196 |
| Female age 75 | $79 | $193 |
| Male age 75 | $100 | $246 |
| Female age 80 | $92 | $225 |
| Male age 80 | $122 | $301 |
| Source for monthly prices: Choice Mutual quote calculator. Data retrieved on 07/01/2024. | ||
Term life
| Age Bracket & Gender | $10,000 | $25,000 |
|---|---|---|
| Female 50-54 | $11 | $18 |
| Male 50-54 | $14 | $26 |
| Female 55-59 | $13 | $22 |
| Male 55-59 | $18 | $36 |
| Female 60-64 | $17 | $32 |
| Male 60-64 | $24 | $50 |
| Female 65-69 | $21 | $44 |
| Male 65-69 | $31 | $67 |
| Female 70-74 | $33 | $74 |
| Male 70-74 | $42 | $95 |
| The monthly price increases every time you enter a new age bracket. Source for monthly prices: Choice Mutual quote calculator. Data retrieved on 07/26/2024. | ||
Should You Buy AARP’s Final Expense Life Insurance?
For most people (not all), AARP burial insurance is not a smart buy.
Yes, the prices seem reasonable, and New York Life Insurance underwrites the insurance. However, there are substantial reasons to opt for other providers if you need a final expense policy.
- Higher prices than most companies—AARP funeral insurance is often much more expensive than most other final expense insurance providers.
- Difficulty in qualifying for immediate coverage- AARP does have life insurance with no waiting period. However, you have to qualify for it by answering questions about your prior health issues, and therein lies the problem. Based on feedback from real customers who applied with them, AARP appears to deny most applicants with pre-existing conditions. They’ll usually counter by offering a policy with a two-year waiting period and a much higher premium.
- It’s group life insurance– No single AARP member has their own policy. Everyone is merely buying into a group plan. The main red flag is that New York Life can change the group policy whenever they want. They can change the cost or the terms and conditions of the coverage. Conversely, everything is locked in if you buy an individual policy.
If you need insurance for your funeral expenses, many other providers, such as Mutual of Omaha, Aetna, Alfac, and many others, offer lower prices (and no waiting period) than AARP’s funeral insurance. That is especially true if you’ve experienced prior health issues.
The best senior burial insurance is typically available only through independent insurance agencies such as Choice Mutual rather than being sold directly by the insurer.
Independent insurance agents (aka “brokers”) compare policies from multiple burial insurance companies for their clients to find the best deal possible.
Dealing directly with insurers like New York Life, Colonial Penn, or TruStage always leads to higher prices (and frequently a waiting period).
In short, find a good independent broker. Then, tell them what you’re looking for so they can find you the best policy.
Frequently Asked Questions
AARP membership does include a benefit that covers funeral expenses. However, AARP does sell burial life insurance meant to cover cremation and burial costs. According to the National Funeral Directors Association, the average cost of a funeral is $8,300. A final expense policy from AARP can offset funeral and other final expenses.
Only the AARP guaranteed acceptance whole life insurance policy has a waiting period. If you die during the first two years, your loved ones will only receive 110% of the premiums you’ve paid.
All AARP life policies can be used as cremation insurance. AARP life insurance policies pay out a tax-free cash benefit to your beneficiaries, which can be used to pay for cremation or other final expenses.
AARP offers members access to exclusive insurance policies, product discounts, and other benefits, but they do not assist with funerals. They don’t help pay for a funeral or with preplanning. At best, AARP can sell you final expense insurance, which can be used to pay for cremation costs or burial expenses.
Article Sources
Choice Mutual often cites third-party websites to provide context and verification for specific claims made in our work. We only link to authoritative websites that provide accurate information. You can learn more about our editorial standards, which guide our mission of delivering factual and impartial content.
- AARP. https://www.aarp.org/about-aarp/company/what-guides-us/
- guaranteed acceptance option. https://www.nylaarp.com/life-insurance/guaranteed-life
- whole life policy. https://www.nylaarp.com/life-insurance/permanent
- living benefits. https://www.nylaarp.com/life-insurance/permanent-living-benefits
- Term life insurance. https://www.nylaarp.com/life-insurance/term/protection
- National Funeral Directors Association. https://nfda.org/news/media-center/nfda-news-releases/id/8134/2023-nfda-general-price-list-study-shows-inflation-increasing-faster-than-the-cost-of-a-funeral
- A.M. Best. https://ratings.ambest.com/CompanyProfile.aspx?ambnum=6820&AltNum=17026820
- Moody's. https://www.moodys.com/research/null-Moodys-affirms-Aaa-ratings-of-Northwestern-Mutual-and-New-York-Rating-Action--PR_1000008574#RATINGS-RATIONALE
- S&P Global. https://www.newyorklife.com/newsroom/Company-strength-ratings-affirmed-2023
- BBB. https://www.bbb.org/us/ny/new-york/profile/insurance-companies/new-york-life-insurance-company-0121-349
- Trustpilot. https://www.trustpilot.com/review/www.newyorklife.com
- Google. https://www.google.com/search?client=firefox-b-1-d&sca_esv=193f1ef4569f6575&sca_upv=1&q=New+York+Life+Insurance+Company&ludocid=11889585487692568853&lsig=AB86z5V1SwFA1nblUCqKyU6DWO4G&sa=X&ved=2ahUKEwjIj8qA3vyGAxXHATQIHSpwC4YQoAJ6BAglEAw&biw=1920&bih=878&dpr=1#lrd=0x89c258e913690e0f:0xa5004b01e08e1915,1,,,,
- Yelp. https://www.yelp.com/biz/new-york-life-insurance-company-new-york-2
- Facebook. https://www.facebook.com/newyorklife/reviews
- NAIC Complaint Index. https://content.naic.org/cis_refined_results.htm?TABLEAU=CIS_COMPLAINTS&COCODE=91596&REALM=PROD&COCODE=91596&REALM=PROD
- BBB Score & Accreditation. https://www.bbb.org/us/ny/new-york/profile/insurance-companies/new-york-life-insurance-company-0121-349
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