About AARP Term Life Insurance

One of the cornerstones of good financial planning and preparation for the future is life insurance. It is the best way to provide for loved ones after you have passed on. Unfortunately, as one ages, life insurance becomes more expensive. The AARP, however, has a program that allows senior citizens to buy life insurance coverage at a reasonable price.

Considerations

Life insurance is a way that you can provide for your loved one after your death. Life insurance can provide the funds needed for your beneficiaries (your partner or your children or others) to pay off bills related to mortgages, illnesses and even funeral expenses. The AARP offers insurance especially for its members through New York Life.

Term life insurance is bought for a specific amount of time: five, 10, 20 or 30 years. Premiums usually remain steady throughout the term. With AARP term life insurance, it is possible to purchase insurance that covers you until the age of 80. At that point, your coverage expires, or you can switch to permanent life insurance through an AARP program.

Benefits

AARP term life insurance is available in a variety of coverage amounts, from as low as $2,500 to as high as $50,000. You should choose your coverage amount depending on your obligations and needs. Your premium will depend on a combination of factors:

1. Your age.
2. Your health.
3. How much coverage you want.
4. The term of the insurance coverage.

With AARP term life insurance, you do not need to take a medical exam. However, you will need to answer three health questions. In order to qualify, you need to be 50 years old, and a member of AARP. (Your spouse, however, can get coverage at the age of 45 if you are a member.) You can apply for term life up to the age of 74, and coverage won't expire until you are 80.
Life insurance can provide great peace of mind, and AARP term life insurance is designed to be affordable and flexible.

Time Frame

If you are interested in AARP term life insurance, it is important to sign up as early as possible. The younger you are, the lower your premium will be. For example, if you get a 20-year AARP life insurance policy when you are 60, you will pay less in premiums than you would if you wait until you are 70 and get 10-year coverage. The younger you are, the less that insurance will cost you.

Function

Remember that life insurance is designed to protect your loved ones from expenses. It is important to understand that term life insurance is not the same as long-term care insurance. Term life insurance only pays out after your death. However, it can be used to pay any outstanding bills and obligations that may be left when you pass.

Expert Insight

Most financial planners agree that life insurance is a vital part of good personal finances and estate planning. It is important to see that your loved ones are provided for, and that your partner is covered so that you will be provided for should he or she pass before you do. While it may not be pleasant to contemplate your own death, it is important to prepare your family's finances for the future.