AARP Life Insurance

[Krono]

I have a prospect interested in term insurance. She is considering buying from us or AARP (NYL) insurance.

Looks like AARP offers a max of 50k. I tried to run a quick quote on the AARP site, but online quoting was not available for TX....so I tried Arkansas...and got a rate, that increases every 5 year age band. No mention of what those increases would be.

Anyone have any other competitive info on their plans?

 

[Newby]

I have a prospect interested in term insurance. She is considering buying from us or AARP (NYL) insurance.

Looks like AARP offers a max of 50k. I tried to run a quick quote on the AARP site, but online quoting was not available for TX....so I tried Arkansas...and got a rate, that increases every 5 year age band. No mention of what those increases would be.

Anyone have any other competitive info on their plans?

AARP is not competative unless they are very poor health. Premiums will increase drastically. Just punch in the older ages and see what it shows.

Unless they just like the AARP organization (very misled if they do in my opinion) you can easily show that AARP is not looking out for them.

And if they really want to see the level of service they will get, have them call the local New York Life office and request an agent to come over to give them some policy service help. Ain't gonna happen! OK then have someone from AARP come help them (they earned the commission didn't they?) Ain't gonna happen either.

Even AARP's whole-life product says they reserve the right to increase premiums in the future.

 

[Krono]

Thanks n/t

...

 

[Newby]

I have a prospect interested in term insurance. She is considering buying from us or AARP (NYL) insurance.

Looks like AARP offers a max of 50k. I tried to run a quick quote on the AARP site, but online quoting was not available for TX....so I tried Arkansas...and got a rate, that increases every 5 year age band. No mention of what those increases would be.

Anyone have any other competitive info on their plans?

Here are the monthly rates for AARP Term with $50,000 coverage:
age 45-49 F $28.67 M $41.08
Age 50-54 F $36.29 M $51.04
Age 55-59 F $55.92 M $74.58
Age 60-64 F $86.21 M 108.25
Age 65-69 F $120.88 M $143.96
Age 70-74 F183.13 M $207.25

These are the current rates charged but they reserve the right to increase them in the future once you start your plan (if they raise the whole age class.) Your premium will increase as your age reaches each 5-year band.

Compare that to a regular Mortgage Term policy (also no medical exac and similar health questions) where a 55-year old (male or female) could have a monthly payment of $72.52 (20-year level) and would have the same premium through the life if the policy. Or $82.37 for 30-year.

Or if they qualify for more strict underwriting, they can cut these payment by more than half if they will take a med exam with numerous term life companies.

But the worst thing is: in my experience working with seniors for the last 12-years...most of them who buy this policy are not looking for temporary life insurance at all. They want permanent. They feel screwed 10-years into it when they figure out the policy is going to end on them and they have no coverage at all.

You have to question, what temporary need is there for insurance of less than $50,000? Most people buying small policies are wanting it for final expenses, not replacement of income.

 

[honestagent]

Here are the monthly rates for AARP Term with $50,000 coverage:
age 45-49 F $28.67 M $41.08
Age 50-54 F $36.29 M $51.04
Age 55-59 F $55.92 M $74.58
Age 60-64 F $86.21 M 108.25
Age 65-69 F $120.88 M $143.96
Age 70-74 F183.13 M $207.25

These are the current rates charged but they reserve the right to increase them in the future once you start your plan (if they raise the whole age class.) Your premium will increase as your age reaches each 5-year band.

Compare that to a regular Mortgage Term policy (also no medical exac and similar health questions) where a 55-year old (male or female) could have a monthly payment of $72.52 (20-year level) and would have the same premium through the life if the policy. Or $82.37 for 30-year.

Or if they qualify for more strict underwriting, they can cut these payment by more than half if they will take a med exam with numerous term life companies.

But the worst thing is: in my experience working with seniors for the last 12-years...most of them who buy this policy are not looking for temporary life insurance at all. They want permanent. They feel screwed 10-years into it when they figure out the policy is going to end on them and they have no coverage at all.

You have to question, what temporary need is there for insurance of less than $50,000? Most people buying small policies are wanting it for final expenses, not replacement of income.

Nice depiction here to drive a wedge with some real #s and hitting the agent bit home. Good stuff.