About AARP Whole Life insurance

Video Transcript

"This is John Pinelli, financial representative. Today we're going to be talking about permanent insurance through the AARP. The AARP offers permanent life insurance through their website, aarp.org, and they offer permanent life insurance in three different forms. The forms that they offer are whole life, which does cover your whole life, as does all permanent insurance. The benefits of whole life would be that the insurance amount of coverage often increases year to year, so you're obtaining more and more and more coverage without having to submit anymore medical information, or go through any medical exams. The nice part about whole life also is that it does build a cash value, which can be taken out at any time, would cause the policy to surrender or forfeit, but you still have that cash savings aspect, and you're not just kind of throwing your premiums away. So that's a nice aspect about the whole life. They offer universal life as well which offers a fixed death benefit, but that benefit can be adjusted as can the premiums from time to time. So it offers that that amount of flexibility within the policy that allows you to change both the premiums and the amount of coverage that you want to obtain fairly easily, and then also they offer variable life insurance. Now with variable life insurance, it's similar to whole life but instead of putting that that savings aside, they take that and they invest it in stocks, bonds, mutual funds, ex-etcetera, trying to generate you a higher rate of return. Now, traditionally, in the past, these variable life insurance policies have been very highly sought after because of their great returns but in recent years, not so much due to our economic downturn, and the downturn of the stock market and many other financials. Lastly, they do offer a combination of universal-variable life, which is basically combining the universal life flexible premiums and flexible coverage with the variable which would tie closely to stock market and returns based on that. So this has been John Pinelli, financial representative talking to you today about whole life, permanent life, variable life, and universal life from the AARP."