AARP Term Insurance May Not Always Be The Best Deal For You

There is no question that AARP is a powerful lobby group for those 50 and older. But that doesn’t mean that its branded insurance policies are the cheapest or even the right ones for you.

ConsumerAffairs wrote an interesting article analyzing AARP life insurance partnership with New York Life questioning whether the term life insurances sold really benefit seniors or AARP.

“Insurance experts will tell you there is a built-in conflict when trusted non-profits get into selling insurance, travel packages and other services,” says the article.

“The problem with affinity groups like AARP is that a lot of times the group is held in great trust and esteem and when the group is selling something, there’s a potential conflict,” said J. Robert Hunter, Director of Insurance for the Consumer Federation of America, former Texas Insurance Commissioner and former head of the national flood insurance program.

“My wife’s college sent her a low-cost group life insurance plan. I went to the website and found out that if you bought it online not using the affinity, it cost less, so there was a kickback to the college,” Hunter said. “These groups tend to be making significant money off these products.”

Thanks to for a heads up on this article.

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4 Comments on "AARP Term Insurance May Not Always Be The Best Deal For You"

  1. I had AARP for car insurance for one year. I did not put in any claims, I had no accidents and the following year they went up $100. on my insurance.

    AARP is too political and got involved with the Obama admin when it came to health care. After supporting his bill AARP came out with their own insurance that covered what seniors lost, they benefited with that involvement. They are involved with Senior Citizens Centers and pitch to the audience. I don’t believe they should be the only one that speaks and meets with seniors on tax or insurance.

    I don’t trust or support AARP for anything.

  2. Citizen’s response represeents a perfect example of someone not knowing anything blaming Obama bc they didnt do the research.

    Re your car premium, $100 probably represents 3-6% of your total bill. Prices go up. Deal with it or simply get other quote. We were with Travelers for almost 20 years. Their premium went up so I called AARP. I got a better plan for our family for almost $3,000 LESS.

    Secondly, what exactly do you think AARP is? A Union? AARP is a voluntary membership non-profit organization. It sells various products, that in most cases, will be cheaper than u can find on your own. I does this bc it is DIRT CHEAP to join and they want to keep our costs down. More importantly, they are an advocasy group for senios issues at national and state levels. If you don’t want to join, or go to their meetings, there is a simple solution: Don’t.

  3. I’m 72. AARP policy terminates at age 80. I need a $50k policy good until age 95.

  4. Jack Sullivan | February 14, 2013 at 7:34 am |

    At various times, for the past 20+ years, I have on occasion shopped for both auto and life insurance through AARP. Every quote that I received was for more than I paid without going through AARP. I have come to the conclusion that their number one priority is to make as much money as they can on the backs of their senior members.

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