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Common Questions About Permanent Life Insurance

Will I need a medical exam for this coverage?
No, you don’t have to see a doctor or take any medical tests. Your acceptance is based on your answers to three simple health questions and other details you may be asked to provide.
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Does this coverage have a waiting period?
No, there is no waiting period once your coverage is approved.1
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Why are rates for AARP Permanent Life insurance initially higher than rates for AARP Level Benefit Term Life insurance?
Premiums for permanent life insurance are almost always initially higher than term life insurance at the same age for several reasons. As the name implies, permanent life insurance can last for your entire lifetime and your rates can’t be raised just because you get older. Term life coverage rates generally increase as you age, and coverage may not be offered beyond a certain age. Another difference is that permanent life coverage can build up cash value over time while term life does not.
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How much life insurance should I have?
There’s no one “right” answer. Everyone’s different – how much insurance you choose depends on who – and what – you want to provide for. Adding up the cost of things you want this coverage to provide for is a good starting point. These might include things like funeral costs, any bills you may leave behind, or living expenses during a period of transition.
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I already have life insurance, should I consider getting more?
Maybe. If you’re not sure you have enough to take care of the people you care about, or if insurance that seemed like plenty in the past is looking less adequate today, AARP Permanent Life insurance could be a smart choice to obtain more coverage.
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How much does coverage cost?
The rate chart on the AARP Permanent Life insurance page shows the affordable current monthly rates. Your premiums are based on your age when you apply, and will not increase simply because you grow older. In fact, you can never be singled out for a rate increase. For complete details, see rate chart.
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Can my rates be raised just because I get older?
No. Your rates are determined by your age when you apply. Once you’re insured, you can’t be singled out for a rate increase; your rates may change only if they are changed for all others in the same class of insured under this group policy.
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Does coverage end at a certain age?
No. AARP Permanent Life insurance allows you to keep coverage for your lifetime, as long as you pay your premiums and did not make material misrepresentations about your health on your application. At age 95, your coverage is considered “paid up”, and will remain in effect for the rest of your life without any further premium payments.
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Are there any circumstances under which payments can be waived?

Premiums will be waived after 180 consecutive days of a certain qualified nursing home confinement ordered by your doctor. No matter how long your stay lasts, your coverage will continue in full with no further premium payments from you.

The nursing home must be primarily engaged in providing skilled nursing care under the supervision of a licensed physician. Nursing home does not include a home or facility used primarily for rest; for the care of drug addicts or alcoholics; for the care and treatment of mental diseases or disorders; or for custodial care.
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Does this coverage include a “accelerated death benefit”?2

Yes. If you’re diagnosed with a terminal illness and given a life expectancy of 24 months or less, you may access half of your benefit amount. It will be paid directly to you, to use in any way you choose. (Not available in Massachusetts or Washington)

Please note that receipt of “living benefit” (accelerated death benefit) insurance proceeds may affect your eligibility for public assistance programs. Proceeds may be taxable. You may wish to consult your financial adviser and/or attorney to determine how this may affect your personal situation. Premiums will be lower when the benefit amount decreases by one-half.

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Will this coverage build up cash value over time?
Yes. In addition to lifelong insurance coverage, a portion of your premium payments goes towards cash value that grows tax-deferred over time. Once you accumulate enough cash value, you can take a loan against your coverage. If you pass away before the loan is paid back, the loan amount and any interest due will be deducted from the death benefit. (Loans accrue interest and decrease the death benefit and cash value by the amount of outstanding loan and interest.)
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What isn't covered?
If death results from suicide in the first two years, benefits will not be paid. (In Washington, Missouri and North Dakota specific state rules apply)3
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How is my privacy protected?
Please click here to view a copy of our privacy notice.
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Is this the only life insurance program endorsed by AARP?
Yes. The AARP Life Insurance Program from New York Life Insurance Company is the only life insurance program endorsed by AARP, and the life insurance products offered through this program are available exclusively to AARP members.
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What if I apply…and change my mind later?
There’s no risk with this AARP-endorsed coverage. A 30-day free look guarantees your satisfaction. You’ll receive a Certificate of Insurance when coverage is approved. If you decide this coverage isn’t for you, for any reason, you can return it within 30 days and receive a refund of any premium paid.
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How do I get started?
Just request a free AARP Permanent Life insurance information kit. It includes an application and complete information about how to apply.
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1 Florida residents during the first two years, New York Life reserves the right to cancel your insurance if your Enrollment Form contains material misrepresentations about your medical history.

2 Texas residents Death Benefits will be reduced if a “Living Benefit” (accelerated death benefit) is paid. The acceleration of life insurance benefits offered under this certificate is intended to qualify for favorable tax treatment under the IRC of 1986. If these benefits qualify for favorable tax treatment, the benefits are excludable from your income and not subject to taxation. You are advised to consult with a qualified tax advisor about circumstances under which you could receive acceleration of life insurance benefits excludable from income under federal law. Receipt of acceleration of life insurance benefits could also affect your and your family's eligibility for public assistance programs (Medicaid, AFDC, SSI, or drug assistance). You are advised to consult with a qualified tax advisor and with social service agencies to determine how receipt of these benefits will affect your eligibility for public assistance. Premiums will be lower when the benefit amount decreases by one-half.

3 Missouri and North Dakota residents: The suicide exclusion applies only for one year.