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AARP Burial Insurance: What You Need to Know

An honest look at AARP's life insurance options for seniors.

AARP is one of the most recognized names in senior services, so it's no surprise people ask about their life insurance. But here's the thing — AARP doesn't actually sell insurance. They license their name to New York Life, which underwrites and sells the policies.

Is AARP insurance a good deal? It depends on what you're looking for. Let's break down exactly what they offer and who it makes sense for.

📖 Quick Take

For our verdict on whether AARP is worth the cost, see our AARP Life Insurance Review.

The Three AARP Life Insurance Options

AARP offers three different policies through New York Life. They're all marketed as "burial" or "final expense" options, but they work very differently:

1. Level Benefit Term Life

Ages 50-80 • Coverage $10K-$100K

  • Premiums increase every 5 years
  • Coverage expires at age 80
  • No cash value — it's term insurance
  • No medical exam required
  • Lowest initial premiums of the three

Best for: Someone who only needs coverage for a specific period and plans to be self-insured by 80.

2. Permanent Life (with Health Questions)

Ages 50-80 • Coverage $2,500-$25K

  • Premiums locked for life
  • Coverage never expires
  • Builds cash value over time
  • No medical exam, but 3 health questions
  • Immediate full coverage (no waiting period)

Best for: Seniors in decent health who want permanent coverage with locked rates.

3. Guaranteed Acceptance Whole Life

Ages 50-80 • Coverage $2,500-$25K

  • Premiums locked for life
  • Coverage never expires
  • No health questions at all
  • 2-year waiting period for full benefits
  • Highest premiums of the three

Best for: Seniors who can't qualify for other coverage due to health conditions.

How Much Does AARP Insurance Cost?

Here's what you can expect to pay for $10,000 in coverage. These are non-smoking rates — smokers pay significantly more.

Age Term Life (Initial) Permanent Life Guaranteed Acceptance
55 $14-$18/mo $42-$52/mo $58-$68/mo
60 $18-$24/mo $52-$65/mo $72-$85/mo
65 $26-$35/mo $68-$82/mo $92-$108/mo
70 $42-$55/mo $88-$105/mo $118-$138/mo
75 $68-$88/mo $115-$140/mo $155-$180/mo

💡 Important: Term Life rates shown are initial rates. They increase every 5 years and can double or triple by age 75.

The Catch with AARP Term Life

That $14/month rate at age 55 looks great. But here's what people don't realize until it's too late:

  • At age 60, the rate jumps to $18-24
  • At age 70, you're paying $42-55
  • At age 75, it's $68-88
  • At age 80, the policy expires entirely

So if you buy at 55, you'll pay increasing premiums for 25 years... and then have nothing to show for it at 80. Meanwhile, someone who bought whole life from the start would still have their coverage locked in at the original rate.

This is why we generally recommend whole life over term for burial insurance. The whole point is to have coverage when you die — and term insurance often runs out before that happens.

Pros and Cons

✅ What's Good About AARP Insurance

  • New York Life is rock solid. A+ rated, one of the oldest insurers in America. Your policy is safe.
  • No medical exams. Even the simplified issue policy only asks 3 questions.
  • AARP membership is cheap. $16/year (or $12/year for 5-year membership).
  • Permanent options have locked rates. What you pay at 55 is what you pay at 85.
  • Brand trust. Some people just feel more comfortable with a name they know.

❌ What's Not So Great

  • Term life expires at 80. Not ideal for burial insurance.
  • Term premiums increase. That cheap rate won't stay cheap.
  • Requires AARP membership. Minor cost, but an extra step.
  • May not be the cheapest. Other carriers often beat AARP's permanent life rates by 10-20%.
  • Guaranteed acceptance has 2-year wait. Same as most, but worth noting.

Who Should Consider AARP Insurance?

AARP insurance makes sense if:

  • You're already an AARP member and value the brand
  • You can qualify for their Permanent Life (with health questions) — those rates are competitive
  • You specifically want New York Life as your carrier
  • You've been declined elsewhere and need guaranteed acceptance

You might want to look elsewhere if:

  • You're considering their Term Life — the expiration at 80 is a dealbreaker for burial coverage
  • You want to compare multiple carriers quickly
  • You're price-shopping and want the absolute lowest premium

Common Questions

Who actually underwrites AARP life insurance?

New York Life Insurance Company. AARP is a membership organization, not an insurance company. They license their name and endorsement, but New York Life handles everything from underwriting to claims.

Is there a waiting period?

Depends on the policy. Term Life and Permanent Life (with health questions) have no waiting period — you're covered from day one. Guaranteed Acceptance has a 2-year waiting period. If you pass away during those 2 years, your beneficiary receives a refund of premiums paid plus interest, not the full death benefit.

Do I have to be an AARP member?

Yes. Membership starts at $16/year, or less with multi-year discounts. You can join when you apply for insurance.

Is AARP burial insurance worth it?

Their Permanent Life option is competitive. Their Term Life is generally not a good fit for burial insurance because it expires at 80. For our full verdict, check out our AARP Review.

What happens when AARP Term Life expires at 80?

Your coverage ends. You get nothing back — it's term insurance, so there's no cash value. This is why we usually recommend whole life for final expense coverage.

Compare Your Options

AARP is just one option. Enter your zip code to see rates from state-regulated carriers in your area — you might find something that works better for your situation.

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