According to statistics from the 2010 United States Census, the population of Americans aged 45 to 64 grew 31.5 percent from the years of 2000 to 2010. With a growing retiree population, the concerns about the costs of living after retirement are of increasing importance. The American Association of Retired Persons (AARP) was founded as a non-profit membership organization with the purpose of improving the quality of life for people over age fifty. One of the major concerns of retirees is finding affordable insurance. With this in mind, AARP Insurance offers a wide range of insurance coverage to its members.
What AARP Offers its Members in Insurance Products
AARP Insurance offers its member a wide range of insurance productsintended as an affordable option to retirees compared to other plans in the general insurance marketplace. The wide range of coverage available includes:
- Health Insurance – Health insurance coverage is provided to members through Aetna. Options include individual health insurance, long-term care insurance, supplemental health insurance (including dental, vision, hearing, and cancer coverage), hospital indemnity plans (a plan that pays the insured a fixed cash benefit for covered hospital stays), and care giving benefits for members who are caring for a spouse who requires in-home care-giving services such as a professional home-health nurse.
Life Insurance -The AARP life insurance program offers products through New York Life Insurance Company. The policies are designed to cover costs related to everyday living expenses, loans or other debts still owed after a member’s death, and medical or funeral bills. Protections offered include permanent life insurance, guaranteed acceptance life insurance, level benefit term life insurance, and extra protection term life insurance. Some of the programs offer coverage to members up to age 80 and others offer lifetime benefits. For life insurance, members are not required to undergo a physical exam.- Auto Insurance -The AARP auto insurance program provides coverage offered through the Hartford. The main features of the automobile coverage program include accident forgiveness, new car replacement, recover care (an option allowing a member to receive benefits for the cost of home services required as the result of an automobile accident), 12-month rate protection (insurance rates are locked in for a 12-month period as opposed to the 6-months of most automobile policies), 24/7 claims services, deductible reductions for keeping a clean driving record, and lifetime renewability. Several discounts are available to members, including multiple car discounts, a policy bundling discount for insuring both home and auto, and a defensive driver discount offered to members who complete a defensive driving course.
- Home Insurance -The homeowners’ insurance program offers coverage through the Hartford. Some of the main features of the program are a 100% replacement coverage option for contents and structures, deductible forgiveness for qualifying losses of $22,500 or more, 24/7 claims service, and lifetime renewability. Members have the option of customizing their coverage to meet their unique home insurance needs.
- Long-Term Care Insurance -Long-term care insurance is offered by Genworth Financial. It is designed to cover things that regular health insurance does not cover when a member requires long-term care because of disease or injury. The coverage offers benefits for adult day health care facilities, assisted living, nursing home care, home health nurses and other personal care assistants who help with such things as cooking, cleaning, or running errands.
- Other Insurance -Other insurance policies include insurance for motorcycles, mobile homes, antiques, boats, personal watercraft, ATVs, golf carts, snowmobiles, and other recreational vehicles. These policies are offered through several leading insurance providers.
- Lifetime Income Options -New York Life provides lifetime income coverage for AARP members. Options include immediate annuities and the lifetime income program. With the immediate annuities option, members pay a one-time premium and receive monthly lifetime payment benefits. The lifetime income program offers fixed annuity payments into a guaranteed amount monthly income stream. Single or joint plans are available. The plan is designed for people who are about to retire. Payments begin a month after the annuity certificate is issued.
- Property & Casualty Insurance for Puerto Rico and the U.S. Virgin Islands -Property & Casualty insurance is available to members living in Puerto Rico and the U.S. Virgin Islands through Real Legacy Insurance. Members can purchase a policy for liability, property, and automobiles.
The Pros and Cons
The advantages of AARP insurance are many. It is a one-stop shopping experience for U.S. Citizens over the age of fifty. The carriers included in the program are highly rated and financially stable. Discounts are offered for purchasing multiple policy lines through AARP. There are a few drawbacks to the program, including membership fees and waiting periods for payment of benefits (full benefits for the Guaranteed Acceptance Program are not paid unless the policy has been in force for two years). Even though there is no medical exam required for life insurance, coverage may be limited based on existing health conditions. Additionally, for some life insurance policies, coverage is only provided until a member or eligible spouse reaches age eighty.
