About AARP Life Insurance and Mortgage Refinancing

Life insurance and mortgage-related issues can be some of the most stressful facing retirees. The AARP can help you solve these problems, save you money and provide you the peace of mind that will enable you to enjoy your retirement.

Significance

Joining the American Association of Retired Persons (AARP) provides many benefits to members, one of the most significant being access to excellent low cost life insurance and mortgage refinancing. AARP differs from most other major insurance companies in that it is organized around the principle of providing the best service possible to Americans over the age of retirement since it was founded in 1958. AARP Services was created in 1999 to provide benefits to members and is expected to grow considerably in the near future.

Function

You can choose between two life insurance policy types from AARP: term and permanent. AARP members aged 50 to 80 and their spouses 45 to 80 are eligible for either policy through New York Life. Term insurance only provides you coverage for a certain period of time before it expires. This is a good choice for if you have a preexisting health condition or are already over 65. It's less expensive, and even if you live past the term's expiration point, you can always get a renewal. You can get one without taking a medical exam if you're willing to pay higher rates.

Function

The AARP permanent life insurance plan provides coverage for as long as you're still alive and continue to make payments on time.This is a good choice if you don't mind the additional cost, are not sure of how long you can be expected to live and don't want to deal with the hassle and stress associated with term life insurance.
No matter which policy you elect to follow, you have control over how much you pay and what the policy will be worth after your death. Life insurance is an important part of planning for retirement. In investment terms, it is a hedge against the risk of early death.

Significance

In this era of financial uncertainty, it's important to keep your retirement plans flexible. With volatility plaguing the stock market, what seemed like a sure bet in a retirement fund can turn to a catastrophic and tragic loss in a matter of days. As long as you pay attention to your options and plan effectively you will be able to manage just fine. AARP Finance provides advice and other services for low rates, provided that you're a member of the organization.
Mortgage refinancing can be enormously helpful when the unexpected happens. One such mortgage technique that retired people in particular are often in a good position to use is called a reverse mortgage.

Expert Insight

A reverse mortgage is a loan on the value of your home that you can get from the bank so long as you don't move and are over 62 years old. This makes it an excellent choice for retired people who have already chosen the house that they are going to live in for the rest of their life, and have already paid off the original mortgage. If you need cash and own your home, it's an excellent way to accomplish that. Your debt will increase while your home equity decreases. This can be a particularly crafty move if you expect your home value to decline in the future.

Identification

Other standard forms of refinancing can help you greatly if mortgage payments are putting the squeeze on your savings. If you have an adjustable rate mortgage and find that the increases and unpredictability are working havoc on your finances, it may be an intelligent decision to refinance to a fixed rate mortgage. Fixed rate mortgages are often far superior choices for people on fixed incomes, like the majority of retirees. One of the most important aspects of retirement planning is to make your expenses as predictable as possible. Refinancing can do that for you.

Resources

• AARP Life Insurance