About AARP Short Term Life Insurance
American Association of Retired Persons also known as AARP is where retired people can get long term or short term insurance. Short term insurance is an insurance that is a specific period and the payout for the insurance is for a purpose. AARP is associated with New York life Insurance Company that offers short term insurance that is affordable to retired people over the age of 50.
History
A doctor and a retired high school principal named Ethel Andrus founded the company. Ethel wanted to create an insurance company for the retired community. Plans where only given to people that are professionals but then all retired people came into the fold. The insurance is meant for policyholders to not let their debt go on to their loved ones once they were gone.
Features
People between the ages of 50 and 80 can get a life insurance policy from AARP. There is no death benefit and it is given for a specific term. You do not have to take a physical examination to qualify for these benefits. There is a certainty that when you apply you are approved and the application process is very easy. The basic information is given during the initial process like age, height, weight and if there has been any use of tobacco. The spouse can also get benefits providing that they are at least 45 years old.
Considerations
Before you apply with AARP, you need to first think about how much insurance that you need to obtain and how much should be invested. Look over the plans to see which one is the best for you. If you need any help deciding, the best thing to so would to talk with an insurance agent.
Benefits
The plans are cost effective. The benefit amount can be deducted from your bank account to be more of a convenience to you. When you reach your coverage amount, there is no more premium payments. Around 50 percent of the coverage is paid if you are diagnosed with a terminal illness.
Significance
The AARP life insurance will usually cover things like the credit card bills, mortgages and other small expenses. The premium never changes it is fixed and will stay that way the entire time you are paying. Cancellation of the policy cannot be done without the authorization of the policyholder.