- 4,875
Premium increase does NOT happen when your age ends with a 0 or a 5. Premium increase occurs each 5 years from date of issue. (63 yr. old male's next increase is when he's 68, then 73, etc. if policy is issued when he was 63).
AARP Whole Life
- Thread starter Tony
- Start date
-
- Tags
- whole life
Premium increase does NOT happen when your age ends with a 0 or a 5. Premium increase occurs each 5 years from date of issue. (63 yr. old male's next increase is when he's 68, then 73, etc. if policy is issued when he was 63).
- 19,673
It increases in 5 year bands. Age 54, 59, 64, 69, 74, 79. If a person buys it at age 68, it increases the next year.
Their permanent insurance is not whole life. It's a uL. They do not claim it to be a whole life at their website or in the policy. Some clown that answers the phone at AARP may very well call it whole life, it's not.
Read the damn policy!! Or, go to their website and enter the info to get a quote.
- 17,078
If we as fairly knowledgable life insurance agents have this much difficulty understanding AARPs product offerings...just think how much their average purchaser understands it.
I'll bet no one has ever bought that policy that understood it and reviewed their other options.
I'll bet no one has ever bought that policy that understood it and reviewed their other options.
- 19,673
You're right, they don't. That's why I know what the policy says. In every single one I've reviewed with people, they had no clue as to what they had bought. Many didn't know that the premiums went up in five year bands on the term. And the ones did know, did not know that the policy ended at age 80.
I have yet to have a person with AARP's "permanent" coverage to know that the premiums are not guaranteed. It's all on page one of the policy. It is not on page one of the advertisement.
I've als found many people that did not know they had a graded policy. But, that's with a lot of others. I met with a lady this past week that had 3 MoO whole life policies. Didn't have a clue that they were graded. No reason for the lady to be in a graded policy. I replaced all 3 with an RNA immediate benefit. She had never read her policies and the MoO advertisement mentions it in small print on the back that it's graded.
If someone can't find their AARP policy, I just go the website and put in their birthday for a quote. On the "permanent" quote, it clearly says right under the quote that the premiums are "not guaranteed". That's generally as far as I have to go.
Since I won't sell a term or a UL for final expenses, I either write them up right then with a whole life policy or I tell them to keep what they have if they don't care about the premium rising. I don't even make an effort to fix stupid.
- Thread starter
- #15
If the premiums go up substantially at age 80 it would be justifiable. Find out what the "current" premium increase at age 80 is. If it's more than $182/month, you already know that if it goes up at 85 again that he is better off with another company unless he dies before age 80. I didn't read back to see if this was a graded policy or if the ones you're quoting above are graded, but that would factor in as well.
- 19,673
The one he is quoting is not graded. The premiums on it do not automatically go up at age 80 or 85. AARP just simply says that the premiums are "not guaranteed"
It's a complete unknown as to when they will increase and to what amount.
- 148
I'd sell the heck out of it if agents were allowed to sell AARP. It's never had a price increase, and even if it did, I doubt it would be higher after the increase than the competition list above.
Just got off the phone with a guy (73) and AARP permanent (whatever that is - UL or WL?) ran 20+ cheaper/month than foresters. Even with increases, it's probably cheaper.
Is there anything that will compete with the product? Forsters is $82 and change and AARP is $61 or something.
Is there anything that will compete with the product? Forsters is $82 and change and AARP is $61 or something.
- 15,041
If it is too good to be true....
