If you are someone who values comprehensive financial planning, then you might have already considered purchasing final expense insurance. This type of policy can help cover the costs associated with your funeral and other end-of-life expenses. One option that you may want to explore is AARP final expense insurance.
What is AARP?
Before we dive into the specifics of their final expense insurance policies, let’s first discuss what AARP is. The American Association of Retired Persons (AARP) is a nonprofit organization that aims to improve the quality of life for those aged 50 and above. They offer a variety of benefits and services for their members, including health care information and resources, social activities, and travel discounts.
In addition to these offerings, AARP also provides insurance products such as life insurance, home insurance, and auto insurance. One option within their life insurance lineup is final expense coverage.
Understanding Final Expense Insurance
As mentioned before, final expense insurance is a type of policy that helps cover the costs associated with end-of-life expenses. This includes things like funeral costs, burial fees, and medical bills incurred in the last months or years of life.
While standard life insurance policies typically have higher death benefits intended to provide long-term financial security for loved ones left behind after a person’s passing, final expense policies are often much smaller in comparison. They may only have coverage up to $25,000 or $50,000 dollars.
Because one of the primary purposes of these policies is to minimize stress on surviving family members who are already coping with emotional grief after losing a loved one. Final expense policies pay out quickly (usually within days), which makes them ideal for covering immediate costs.
Some providers even allow beneficiaries to use part of this money toward nonfuneral expenses (such as paying off debts or covering living expenses). Again though; it mostly depends on the specific policy.
AARP Final Expense Insurance
AARP offers final expense insurance policies designed for members aged 50 to 80. As with any type of insurance policy, there are a few details to keep in mind when considering AARP’s final expense coverage.
Eligibility
To be eligible for an AARP final expense insurance policy, you must be between the ages of 50 and 80 years old. However, if you apply before age 75 and have no underlying health conditions or history of smoking, you may not need to take a medical exam.
Coverage Amounts
AARP’s final expense policies offer coverage amounts between $2,500 and $25,000 dollars. While this may seem small compared to a standard life insurance policy, it should be enough to cover most funeral expenses.
Premiums
The cost of premiums for an AARP final expense policy varies depending on factors such as age, gender, health status, coverage amount selected, among other things. However; according to their website—monthly payments start at around $13 dollars per month. There are options for people who want permanent protection too which may also change the monthly premium requirements.
Benefits
One primary benefit of choosing AARP as your final expense provider is that they provide death benefits paid directly to beneficiaries without going through probate court. This means that your loved ones can receive the funds quickly and easily without any unnecessary delays or legal complications (assuming all information is accurate and nothing needs verification).
Other Considerations
While AARP offers some excellent options for those seeking this type of insurance coverage there are a few things worth pondering before purchasing any plan:
- Do You Need It?: If you already have adequate savings resources set aside specifically meant for end-of-life costs then maybe this kind of policy isn’t necessary.
- Shop Around For Better Rates: Although it’s great that AARP offers good rates starting at around $13 per month, it may still be wise to shop around for other providers before making a final decision.
- Consider Other Coverage: Depending on your specific circumstances, it might make more sense to look into other types of insurance coverage (such as long-term care insurance or critical illness coverage).
Conclusion
All in all; AARP offers some intriguing options for those interested in this kind of policy—and they have earned a reputation for providing quality products and services geared toward their target demographic.
However, as with any financial decision, it’s essential to weigh the pros and cons carefully. Make sure you fully understand the details of any policies you’re considering so that you can make an informed choice.
FAQs
What is AARP final expense insurance?
AARP final expense insurance is a type of permanent whole life insurance that helps cover the cost of funeral expenses and other end-of-life expenses.
Who is eligible for AARP final expense insurance?
AARP final expense insurance is available to AARP members between the ages of 50 and 80, as well as their spouses and dependents.
How much coverage does AARP final expense insurance provide?
AARP final expense insurance policies typically provide coverage amounts ranging from $2,500 to $25,000.
What are the benefits of having AARP final expense insurance?
The benefits of having AARP final expense insurance include peace of mind knowing that your end-of-life expenses will be covered and that you won’t leave a financial burden on your loved ones.
Can you choose your own funeral home with AARP final expense insurance?
Yes, with AARP final expense insurance, you can choose any funeral home or cremation provider that you prefer.
Is there a waiting period for coverage to begin with AARP final expense insurance?
Yes, there is typically a two-year waiting period before full coverage begins with an AARP final expense insurance policy. However, accidental death benefits may be available immediately.
What happens if I cancel my AARP final expense insurance policy?
If you cancel your policy, you may receive a refund of premiums paid depending on the terms of the policy contract. However, it’s important to consider the long-term costs and benefits before cancelling any life insurance policy.
Do I have to take a medical exam to get approved for AARP final expense insurance?
No, there are no medical exams required for approval with most policies. However, you may need to answer some health-related questions on the application.
How much does AARP final expense insurance cost?
The cost of AARP final expense insurance varies depending on factors such as age, health status, and coverage amount. It’s important to get a personalized quote to determine the cost for your specific situation.
Can I use my AARP final expense insurance coverage for non-funeral expenses?
No, the coverage is specifically designed for funeral costs and other end-of-life expenses. It cannot be used for other types of expenses or debts.