AARP Life Insurance Review
Acting as a subsidiary of the American Association of Retired Persons (AARP), AARP Financial, Inc. was founded in 2005 in order to help people reach and maintain their financial security goals during their retirement. AARP Financial, Inc. provides access to various products and services that supports its members with education and guidance with respect to financial decisions. There are many financial products sold through the AARP including mutual funds, financial counseling. One of those products is an AARP life insurance program, www.ParamountLifeInsurance.com, and underwritten through New York Life.
When considering life insurance alternatives, it is important to consider the resources left behind for families to use to support themselves. If a savings account is very full of money then individuals can use that cash support them if someone passes, then life insurance may not be necessary for consumers in this situation. Otherwise, insurance is the best financial strategy to ensure the stability of a family’s finances after you die as the benefits can outweigh the costs by hundreds of thousands of dollars.
AARP members seeking life insurance coverage have the same options as anyone seeking coverage in the regular insurance market. The main decision to be made with respect to AARP life insurance products is whether to buy term insurance or permanent insurance. Term insurance can cost less in the beginning with yearly premium increases built into the plan. Permanent insurance may have high costs at the outset, which may decrease over time.
More important is the length of time that applies to each type of policy. A term policy will remain in effect for a specified period, while permanent insurance remains in effect for the entire life of the policyholder, as long as premiums are paid regularly.
Another important difference between these two types of AARP life insurance coverage is the investment element contained in permanent life insurance policies. As a policyholder pays premium for this type of policy, a portion of the premium is invested in an account that builds a cash value over time. These funds are available to the insured for withdrawal after a certain time, and the funds will grow with interest as they remain in the account. There is no such mechanism in a term life insurance policy. In a term policy, the premiums are solely used to fund the insurance policy.
Often, the strategy in utilizing a term policy involves a plan to pay off a large outstanding debt like a mortgage, or to fund funeral expenses.
AARP life insurance products are available to members with no physical exam requirement. An application for coverage merely requires answers to a few simple health questions and there is no waiting period for coverage to take place. More information on AARP here, http://www.paramountlifeinsurance.com/life-insurance-blog/
Once enrolled, a policyholder can never be cancelled without consent as long as policy premiums remain up to date, and as long as there are no material misrepresentations on the original policy application. Additionally, individual policyholders can never be subject to a rate increase unless the increase is part of a change that applies to all policyholders in the same group.
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- Paramount Life Insurance
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