AARP Final Expense

Discussion in 'Final Expense Forum' started by Winter_123, May 22, 2008.

  1. Winter_123
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    Winter_123 Well-Known Member

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    I presume that AARP is hawking some kind of FE plan. Who is the carrier, what are the rates, underwriting questions, pros and cons etc?

    I am not interested in getting appointed with them. Just want to know what seniors are seeing.

    Thanks.

    Winter
     
  2. midwestbroker
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    midwestbroker Well-Known Member

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  3. Winter_123
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    Winter_123 Well-Known Member

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    Thanks. I see the obvious issues with term and rising rates.

    However, in his post, Mr. Newby refers to being able to purchase whole life at age 80. Isn't their whole life final expense product available at younger ages. If so, what does that look like from a rates and underwriting point of view?

    Winter
     
  4. Newby
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    Newby Well-Known Member

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    The rates on their whole-life are pretty high. Like most AARP products, it is priced to be guaranteed issue and they charge everyone tobacco rates so they don't discriminate for smokers.

    For instance an age 70 male in good health non-smoker can find these rates for $10,000 coverage:
    AARP New York Life= $84.33
    Forethought= $71.71
    Oxford = $64.65
    Mutual of Omaha = $75.29
    Shenandoah = $70.58
    and hundreds of others that are priced similar

    The AARP policy is not only the highest, but it is the only one of this group where the healthy applicant would have to wait two years for their coverage to be in effect.

    This would not be any big deal except that they mislead seniors into believing they have searched for the best deal for them. If AARP was really looking out for seniors...they would be warning them against buying insurance from AARP.
     
  5. retread
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    retread Well-Known Member

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    The Final argument:
    Guaranteed issue= no health questions, waiting period for DB, save a few bucks.
    Simplified issue = a few health questions (can you fog a mirror), no waiting period for DB, still affordable.

    Worried you may not live out the waiting period for GI? ... then pick an SI.

    Both are WL, neither require medical exam, not subject to income taxes on DB, and not subject to probate and you won't outlive either. Just make sure you pay the premiums.

    Why bother with term? If you outlive it, you lose it.
     
  6. senior-advisor-indiana
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    senior-advisor-indiana Well-Known Member

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    I doubt they will qualify for SI if they do not think they are gonna live another 24 months.
     
  7. Newby
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    Newby Well-Known Member

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    Your post is confusing.

    Guaranteed issue doesn't save a few bucks. It usually costs extra.
     
  8. retread
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    retread Well-Known Member

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    AH! Just testing you....

    You are right, got them backwards.:embarrassed:
     

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