How Much Does AARP Life Insurance Cost? Complete 2025 Pricing Guide
If you’re over 50 and exploring life insurance options, AARP’s insurance programs, underwritten by New York Life, are likely on your radar. But understanding exactly how much AARP life insurance costs can be challenging. This guide breaks down the pricing structure, policy options, and factors that influence your premium rates.
AARP Life Insurance Options and Their Costs
AARP offers several life insurance products specifically designed for older adults, each with different pricing structures:
1. AARP Level Benefit Term Life Insurance
This term policy offers fixed premiums and coverage amounts that don’t decrease over time.
Typical Monthly Premium Ranges:
- Ages 50-59: $15-$40 for $25,000 coverage, $28-$75 for $50,000, $54-$145 for $100,000
- Ages 60-69: $40-$95 for $25,000 coverage, $75-$185 for $50,000, $145-$365 for $100,000
- Ages 70-74: $95-$175 for $25,000 coverage, $185-$340 for $50,000, $300-$500+ for $100,000
Key features:
- No medical exam required (just health questions)
- Coverage available up to $100,000
- Rates increase as you enter new age brackets
- Acceptance guaranteed for AARP members
2. AARP Guaranteed Acceptance Life Insurance
This whole life policy requires no health questions or medical exams.
Typical Monthly Premium Ranges:
- Ages 50-59: $19-$25 for $5,000 coverage, $36-$48 for $10,000, $53-$70 for $15,000
- Ages 60-69: $27-$39 for $5,000 coverage, $51-$74 for $10,000, $75-$109 for $15,000
- Ages 70-80: $44-$85 for $5,000 coverage, $85-$166 for $10,000, $124-$245 for $15,000
Key features:
- Coverage maxes out at $25,000
- Limited benefit period of 2 years (if death occurs in the first two years, beneficiaries receive paid premiums plus 30%)
- Premiums never increase
- Builds modest cash value over time
3. AARP Permanent Life Insurance
This whole life policy offers lifelong coverage with higher benefit amounts than the guaranteed acceptance option.
Typical Monthly Premium Ranges:
- Ages 50-59: $32-$65 for $10,000 coverage, $60-$125 for $20,000, $146-$300 for $50,000
- Ages 60-69: $72-$120 for $10,000 coverage, $140-$235 for $20,000, $340-$575 for $50,000
- Ages 70-80: $130-$210 for $10,000 coverage, $255-$415 for $20,000, $625-$1,000+ for $50,000
Key features:
- Coverage available up to $50,000
- Simplified underwriting (health questions but no medical exam)
- Premiums remain level for life
- Builds cash value you can borrow against
Factors That Affect AARP Life Insurance Costs
Several key elements determine your specific AARP life insurance premium:
1. Age
The single biggest factor affecting cost. The older you are when you apply, the higher your premiums will be. AARP insurance uses 5-year age bands, so rates increase as you enter each new age bracket.
2. Gender
Women typically pay 10-20% less than men for the same coverage due to longer average lifespans.
3. Coverage Amount
Larger benefit amounts naturally lead to higher premiums, though the cost per thousand dollars of coverage typically decreases as the policy size increases.
4. Tobacco Use
Smokers can expect to pay 30-50% more than non-smokers for AARP Term Life Insurance (not applicable for Guaranteed Acceptance policies).
5. State of Residence
Insurance regulations vary by state, affecting premium rates and available coverage options.
How AARP Insurance Costs Compare to Alternatives
AARP life insurance is generally more expensive than policies requiring full medical underwriting, but offers these advantages:
- Convenience: No medical exams required
- Accessibility: Easier to qualify with health issues
- Stability: Backed by New York Life, a financially strong insurer
- Member Benefits: Additional perks for AARP members
Is AARP Life Insurance Worth the Cost?
AARP life insurance typically costs more than fully underwritten policies but may provide good value if you:
- Have health conditions that make traditional coverage difficult to obtain
- Need modest coverage amounts ($50,000 or less)
- Value the simplified application process
- Appreciate the AARP’s advocacy and trusted reputation
For those in excellent health or needing larger coverage amounts, traditional term or whole life policies from other insurers may offer better value.
Conclusion
AARP life insurance costs vary widely based on age, gender, coverage amount, and policy type, with monthly premiums ranging from approximately $15 to $1,000+. While not the least expensive option on the market, these policies offer accessibility, convenience, and peace of mind for many older adults seeking life insurance protection.