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 ConsumerWorld.org for a heads up on this article.
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