- With a membership base of 35 million, the AARP (American Association of Retired Persons) is a nonprofit organization that provides individuals ages 50 or older with discount products and services through its annual membership offerings. Policy coverage, whether it be long-term care or supplemental insurance, is offered along with personal-advocacy services that are there to assist with any policy concerns, Medicare issues or Social Security matters.
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The AARP Health option sponsors a collection of health-related products and services. The organization works in conjunction with independent insurance providers who carry the AARP trademark. Because of the large membership base, insurance providers are able to group premium rates to individuals for health-insurance coverage. Membership fees run as low as $12.50 per year. This one fee also covers spouses and partners.
Long-term-care insurance plans are administered by Genworth Financial. Their Medicare supplement plans are offered through the United Healthcare Insurance Company. Both companies pay a fee to AARP for the use of the trademark.
Additional benefits of an AARP membership include:
Automobile insurance
Homeowner's insurance
Life insurance
Travel discounts
Credit-card services through Chase
Discounted online services
Discounted phone services
AARP Magazine -
Membership bases are divided into two age groups, to best meet the needs of participants at different life stages. The age range runs from 50 to 65+ years old, with 50- to 64-year-olds in one group, and people 65+ years old in the second group. AARP Medicare supplement plans are available to the "65 and over" group. These plans cover all Medicare Part D requirements under a flat copay for all prescription costs. Medicare Part B coverage for supplies is also included in the supplement plan.
In terms of long-term-care insurance, many states set a limit as to how much can be in your savings account when drawing from long-term-care benefits. Coverage under Genworth Financial provides some protection of your savings-account holdings. In addition, participants have a choice as to who provides care services, be it a preferred facility or friends or relatives who have been chosen as caretakers. -
AARP's Medicare supplement coverage has 12 plan options to choose from, all of which follow the traditional Medigap coverage requirements. Plans run from A to L. They are designed to pick up where Medicare leaves off in terms of cost. Co-pays and coinsurance costs are covered, along with excess charges not covered by Medicare. Skilled nursing-home care is included in all plan options, except for plans A and B. Coverage for at-home recovery care is provided under plans D, G. I and J.
Long-term-care coverage under Genworth includes care needed during times of chronic illness, disability and severe cognitive impairment. Coverage varies according to the area in which you live. This plan option is available to people 50 years of age and older. -
While AARP's supplement plans are a viable option in terms of ensuring full and reliable health-care coverage, there are some issues to consider when opting for long-term-care coverage. Premium payments do tend to increase with age, and as a result, only five out of every 100 people nearing retirement still have this coverage by the time they reach 80 years old. Premiums have become unaffordable, and policies are dropped at the exact time they're needed most.
When considering long-term-care insurance, be sure to factor in affordability costs between now and when you're most likely to need it. While this type of coverage does fill a definite need, there's no sense in paying into it for years and then losing all of that money without benefiting from the service.
