Common Questions About Guaranteed Acceptance Life Insurance
Can I be turned down?
No — this coverage is available to all AARP members ages 50 to 80 and their spouses or partners ages 45 to 80.1 As long as you are within program coverage limits, you cannot be turned down* for AARP Guaranteed Acceptance Life Insurance from New York Life Insurance Company. (Not available in New Jersey or Washington)Back to Top »
Is there a medical exam or health questions?
No, there is no medical exam, medical testing or health questions.Back to Top »
Does this coverage have a waiting period?
Yes. Because acceptance is guaranteed,* there is a two-year limited benefit period. Full benefits will be paid for accidental death from day one. However, in the first two years, death from natural causes will pay a limited benefit of 125% of premiums paid.2Back to Top »
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.Back to Top »
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 Guaranteed Acceptance Life insurance could be a smart choice to obtain more coverage.Back to Top »
- How much does coverage cost?
Why are rates for AARP Guaranteed Acceptance Life insurance higher than rates for AARP Level Benefit Term Life insurance?
Initially, rates for permanent life insurance are almost always more expensive 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 are guaranteed. Term life coverage rates 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 usually does not. Because AARP Guaranteed Acceptance Life provides guaranteed acceptance* without medical underwriting, the premium includes an extra mortality risk charge. Medically underwritten products are also available.Back to Top »
Can my rates go up just because I get older or my health declines?
No. Your rate is determined by your age when you apply and is guaranteed to never increase.Back to Top »
Will this coverage build up cash value over time?
Yes. In addition to lifelong insurance coverage, a portion of your premium payments goes toward 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 the outstanding loan and interest.Back to Top »
Does coverage end at a certain age?
No. AARP Guaranteed Acceptance Life insurance allows you to keep coverage for your lifetime, as long as you pay your premiums. 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.Back to Top »
Does this coverage include a “accelerated death benefit”?3
Yes. If you’re diagnosed with a terminal illness and given a life expectancy of 12 months (24 months in Texas and Illinois) 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.Back to Top »
What isn't covered?
If death results from suicide in the first two years,4 benefits will not be paid.Back to Top »
- How is my privacy protected?
Is this coverage part of 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.Back to Top »
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.Back to Top »
How do I get started?
Just request an AARP Guaranteed Acceptance Life free information kit. It includes an Enrollment Form and complete information about how to enroll.Back to Top »
1 New York residents: This coverage is available to all AARP members and their spouses or partners ages 50 to 75.
2 Missouri residents: Age at issue is 76 or over, a minimum benefit of 50% of the amount in force is paid, if death occurs during the first two years.
Pennsylvania residents: unless the minimum death benefit payable is greater during the first two years. The description of the minimum death benefit payable to the beneficiary is as follows: (a) for issue age 45 minimum benefits are paid as follows: for death during the first year, 15% of the amount in force and for death during the second year, 40% of the amount in force; (b) for issue ages 46 through 55 minimum benefits are paid as follows: for death during the first year, 10% of the amount in force and for death during the second year, 30% of the greater in force; (c) for issue age 56 or over, for death during the first year, a minimum benefit of 120% of premiums due and payable through the first year is paid and for death during the second year, the greater of 15% of the amount in force or 130% of premiums due and payable through the first and second years is paid.
Minnesota residents: the minimum benefit payable is 400% of premiums due and payable through the first year, if death occurs during the first 2 years.
3 Texas residents: Death Benefits will be reduced if a “Living 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.
4 Missouri and North Dakota residents: The suicide exclusion applies only for one year.
* If you're already insured with the Program, the full coverage amount may not be available.
Florida residents: The licensed agent in Florida is Jason Montgomery.