AARP vs Low Cost Term Life Insurance

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AARP is a well know name in the senior community. But did you know buying low cost term insurance can save you thousands of dollars over AARP coverage? Check out the complete blog

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Transcription of video:

Hi this is Terry Robbins with LifeNet Insurance Solutions and today we are going to talk about AARP life insurance vs. low cost term insurance.

AARP insurance is a simplified issue product. You go online and fill out their form. It has a few medical questions on it, and if these medical re answered to their satisfaction so that you do not have certain medical conditions, you can get insurance at their company with no other underwriting, no tests, nothing, you’re done. So it’s very easy and very convenient. You will, however, pay for the privilege of not having a blood and urine test, and someone come to your home and do an exam.

One of the products we have is called; we call low cost term insurance. And what we do is we look for the lowest cost carrier to fit your needs. So what I’ve done today is compared the AARP price, excuse me, the AARP price with the low cost term insurance price. Now, for low cost term insurance you’ll fill out an application, an agent will help you do that. You’ll take an exam and have blood and urine drawn. They’ll do full underwriting, possibly getting medical records and asking you other questions.

Here’s the difference:

Number 1. The AARP policy has a price that you start with. The price goes up every 5 years. So you will get an increase all along the way. If you choose the AARP policy the policy ends when you are 80. When you turn 80 it’s over. You can convert it to a permanent policy before that. On the low cost policy, depending on your age, it can go for 10, 20 30 years. If you get one at age 60, 65 it can go to 90, 95.

So here’s some difference in pricing.

If you’re 45, we’re looking at $100,000 of insurance for 20 years with a standard rating. AARP will cost you $40.00 a month. Low cost- $24.50.

Take a guess how much you would save over a 20 year period, spending a half an hour to do an exam and blood and urine? Can you believe it’s over five thousand five hundred dollars ($5500.00)? Well it is!

If you’re 50, AARP will start at $60.00 a month, low cost term insurance $37.00. We’re still in that fifty five hundred dollar ($5500.00) range for those 20 years.

If you’re older, let’s say you’re 65, and you’re going to get a 15 year policy because with AARP that’s as long as it can go, you’re looking at $108.00 a month to start, low cost term insurance $88.00. The difference in 10 years would be twenty four hundred dollars ($2400.00), in 15, thirty six hundred dollars ($3600.00).

So as you can see, taking that half an hour, and spending a little time with an agent to get to the right company can save you thousands a thousands of dollars. Are you that afraid of taking a blood test? Probably not! Not for five grand ($5000.00)!

This is Terry Robbins with LifeNet Insurance. Hope I’ve given you something to think about today. Thanks for listening. Hope to see you soon. Bye bye.

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