- AARP was initially founded in 1947 as the National Retired Teachers Association by Dr. Ethel Percy Andrus as a means for poorly paid teachers to acquire insurance. This group expanded to become the American Association of Retired Persons (AARP) in 1958. AARP functions as a nonpartisan advocacy group for members who, contrary to popular belief, do not have to be retired in order to join. In addition to lobbying various state and federal governments, AARP also offers benefits and discounts to its members, such as several types of insurance.
- AARP works with three primary insurance carriers; New York Life Insurance Company (New York Life), Hartford Financial Services Group (The Hartford), and Foremost Insurance Group (Foremost). Depending upon the type of insurance opted for, members will be dealing with any one, or even all of these companies. It is this diversity that allows AARP to offer custom discounts to its members. New York Life, which has been offering insurance since 1845, handles all life insurance and lifetime income insurance offered through the AARP. Automotive, homeowners, and Recreational Vehicle (RV) insurances are provided in partnership with The Hartford group, a nearly 200-year-old company with a stable reputation. Foremost, which handles motorcycle and mobile home insurance, is the "youngest" company, but has been in operation selling insurance since 1957.
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Life insurance can either be "whole" life or "term." Whole life insurance is a policy that remains in effect the entire length of the policyholder's lifetime as long as premiums are paid. Whole life slowly accumulates cash value over time and can be borrowed against after a certain point determined in the policy. Term life insurance is a set amount of coverage for a predetermined period of time during which a specified amount of insurance is paid out if the policyholder dies. Unlike whole life, term life has no value accumulation and can not be considered collateral.
Lifetime income insurance utilizes part of the money put aside for retirement to pay premiums of an insurance policy that begins paying out when the policyholder retires. These annuity payments are meant to augment the retirement accounts of retirees to protect against inflation and unforeseen expenses which can be a hazard for those living on fixed incomes. These policies are administered by New York Life. -
Automotive insurance is a set of policies that are meant to protect the driver while they are operating a vehicle, and in some states, a minimum amount of coverage is required by law in order to operate a motor vehicle legally. Liability insurance is usually the minimum requirement for operating a vehicle in most states. Liability protects another person if the policyholder is cited as at fault for an accident. Comprehensive and Collision (C&C) is a policy that protects the vehicle and the policyholder if not at fault or subject to an act of nature, vandalism, or car theft. Other insurance policies are also available for a number of other possible incidents which may befall the policyholder or the vehicle. Recreational vehicles and motorcycles utilize a different kind of policy.
Homeowners insurance protects the policyholder and his home in ways that are similar to automobile insurance. In the event an act of nature, fire, or other causes damage the policyholder's home, the insurance pays for repair or replacement. There are a variety of optional coverages, such as flood insurance, which are not covered by a blanket homeowners insurance policy and must be investigated and requested by the policyholder.
RV insurance is also similar to automobile insurance with the exception that it covers RVs, boats, off-road vehicles, classic cars, and other vehicles that are not regularly driven during the course of a policy-holder's day. Like automotive and homeowner's insurance, there are additional protections available upon request. These policies are administered by The Hartford. -
Motorcycle insurance is similar to automobile insurance in the types of policies offered and the types of coverage offered by each. Motorcycles, however, have different rates and risk models and therefore require different policies from those offered for automobiles through AARP.
Mobile home insurance is likewise similar to homeowners insurance, but due to the nature of mobile homes, requires different policies. This is due in part to the different types of damage which may occur to a mobile home which usually do not occur to conventional houses, such as collapse of the structure from the weight of snow or ice. Both of these policies are administered by Foremost Insurance Group.
Comments
MI-Sandi said
on 1/2/2009 Thanks, I am an AARP member, but was not aware of their history!