AARP Burial Insurance Review

Written by Jeff Root

One of the most popular programs that AARP currently has to offer is the burial insurance that can be accessed by its members.

With a decent burial insurance policy, the cost of a funeral, burial, and other end of life expenses can be adequately planned for in advance.

Whether you are purchasing a burial insurance policy for yourself or for your parents, these policies can effectively reduce the financial burden experienced by your family following a death.

What Does Burial Insurance Cover? 

Considering that the cost of burial or cremation is something that will inevitably be endured by someone, there are naturally many different burial insurance providers that you currently have to choose from.

The burial insurance plan that will make the most sense for you and your family will depend on your specific financial situation, as well as the end of life expenses you are currently expecting to pay.

Burial insurance covers the following expenses:

  • Urn, cremation
  • Funeral services
  • Body preparation, embalming
  • Gravestone
  • Other expenses
The average funeral costs in America range from $7,000 – $12,000. While it is something you may not want to think about, it is inevitable, and it can leave a large financial burden on your family in the event of your death, if not planned for.

Before committing to a specific burial insurance company, it is important to do your research and compare all of the different options you have available.

Working with an independent agent or website can make it significantly easier to make a final decision. This article will briefly explore the details of AARP’s Burial Insurance Plan, answer some of the most common questions about burial insurance, and discuss how to find the best burial insurance policy for you.

AARP Life Insurance Review

AARP (American Association of Retired Persons) is currently one of the largest interest groups in the entire world. The company is a 501(c) nonprofit organization that is currently headquartered in Washington DC. For the past 60 years (since 1958), the organization has worked diligently to fulfill its mission of “empowering people to choose how they live as they age.”

AARP is highly regarded financially, being rated very highly by the following financial rating agencies:

Company Financial Rating
Standard & Poor’s A++
A.M. Best A+
Moody’s Aa2
Fitch AAA

Currently, AARP claims to have more than 38 million members. As an organization that is primarily committed to advocating and providing services for the elderly, the fact that they are involved in late in life financial planning should come as no surprise.

In fact, every year, countless Americans turn towards AARP for help with things such as retirement planning, purchasing life insurance, and planning for long-term expenses.

Being a member of AARP can provide you with a significant amount of financial benefits. For example, many AARP members qualify for financial discounts or lower premiums that are generally not available to the ordinary public.

AARP has a specific burial insurance program that seeks to use the benefits of having a large group—38 million and counting—in order to offer discounts on end of life expenses. Before we dive into AARP’s Burial Insurance offerings, let’s first answer one key question:

What is Burial Insurance?

“Life insurance” is a term that is used to describe a relatively wide range of financial assets. Burial insurance is a specific type of life insurance which, as the name likely implies, is typically designed to be used for the cost of a burial following the death of a loved one.

The cost of a burial is a relatively loose term; things such as the casket, funeral, plot of land, cremation process, and relevant merchandise can all be covered by a burial insurance policy.

One of the reasons why many people prefer burial insurance to larger life insurance policies is that burial insurance almost never requires you to take a medical exam.

This means that even if you are unhealthy and anticipate that you might pass away in the near future, you can still qualify for a burial insurance policy. However, many of these policies have a minimum amount of time (often two years) before they will be paid out entirely. This is called a graded death benefit.

Burial insurance should be purchased by whoever it is that is expected to pay for the cost of a funeral and burial. If you would like to pay for your own burial, then you can purchase a burial insurance policy on yourself.

If you will be responsible for paying for your parent’s funeral, then you can purchase a burial insurance policy on them. In exchange for a small monthly premium, the “death benefit” portion of the policy will be paid to a predetermined beneficiary.

Burial Insurance

Because AARP’s burial insurance policies are designed to appeal to a very wide range of families, these policies can be easily adjusted in accordance with your specific needs. In fact, one of the reasons that AARP Burial Insurance is so popular is its ability to be easily customized.

Currently, AARP burial insurance policies are available for anywhere between $2,500 and $100,000. If you are anticipating needing more than $100,000 to cover your end of life expenses, then you may want to consider purchasing an ordinary whole life insurance policy rather than a burial insurance policy.

Naturally, the AARP burial insurance policies that are able to offer the highest death benefits will also be the policies with the highest monthly premiums.

AARP Burial Insurance Plans Will Fall Into One of 3 Given Categories:

Level Benefit Term Life

A level benefit policy means that the death benefit is paid out in full immediately upon the death of the insured.

AARP offers up to $100,000 in coverage on this policy.

Simplified Issue Whole Life

Simplified issue whole life insurance is issued to people with no medical exam and only asks a few health-related questions in the application process.

AARP offers their simplified issue whole life policy up to $50,000 in coverage.

Guaranteed Issue Whole Life

Guaranteed issue whole life insurance is issued without a medical exam and without any health questions. Generally speaking, this type of policy is available to any applicant and will be granted to any applicant, regardless of their health.

As a result, this type of life insurance policy is the most expensive.  AARP offers up to $25,000 in guaranteed issue whole life coverage.

Which Burial Insurance Policy is Right for Me?

Of the various choices mentioned above, variables such as your age, your life expectancy, and your current financial needs should all be considered.

While term life (or burial life) insurance policies will offer you coverage for a specific amount of time, whole life insurance policies will offer you coverage for however long you may live.

The guaranteed issue policy is particularly desirable for individuals who have had difficulty securing coverage elsewhere.

Though with AARP this policy requires two years in order to become active (otherwise they will pay out 125% of premiums paid), is guaranteed to qualify can be incredibly beneficial.

If you believe you will live longer than 2 years, but less than 10 years, then the guaranteed issue policy may be the best choice you have available.

Special Features

As an organization that prides itself in its commitment to retired citizens, there is no surprise that AARP would claim to “specialize” in providing them with the financial protection they need.

AARP’s burial insurance policy is specifically designed for individuals between the ages of 50 and 80. Though you do not need to be retired in order to access this life insurance policy, being a member of AARP is still a good idea.

One of the benefits of working with AARP to receive burial insurance is that you will also gain access to the organization’s financial services as a whole.

Combining a death benefit policy with retirement planning, social security planning, and even automobile insurance can often make the financial planning process significantly easier.

Additionally, because AARP is able to offer a dynamic range of options, customizing a plan that can effectively meet your needs is often much easier than doing so using multiple different organizations.

Choosing the Burial Insurance Plan that’s Right for You

With seemingly countless different burial insurance providers to choose from, knowing which burial insurance company is right for you can often be incredibly difficult.

After all, your choice in a burial insurance provider is an incredibly important decision and one that should certainly be taken quite seriously.

There is no single burial insurance provider that will always be the best choice for a given family. There are many different variables that will need to be accounted for.

By taking the time to ask yourself a series of a few simple questions, finding the insurance provider that can best meet your needs should be significantly easier.

  • How old are you?
  • How old do you think you will live to be?
  • Who is responsible for paying for your funeral?
  • Are you responsible for paying for anyone else’s?
  • What do you anticipate your end of life expenses to be
  • How much burial insurance coverage do you believe you will need?
  • What features, benefits, and qualifications are you looking for in a burial insurance provider?
  • What other financial assets do you currently possess?
  • How do you plan to incorporate burial insurance into your overall financial portfolio?

By asking yourself these simple—yet important—questions, you can significantly narrow down the list of possible insurance providers that are currently available.

Finding the ideal burial insurance provider requires the ability to carefully balance costs (premiums) and benefits (death benefits).

Possible Alternatives to AARP Burial Insurance

Though burial insurance from AARP is generally considered to be sufficient, you should still take the time to consider what other options are currently available. Even if you decide to still go with AARP in the end, you will at least be able to be significantly more confident in your final decision.

Here are some of the most popular burial insurance options that are currently available:

Company A.M. Financial Rating Customer Satisfaction
AIG A 4.2 / 5
Americo A 3.9 / 5
Mutual of Omaha A+ 4.1 / 5
Phoenix B 3.7 / 5
Sagicor A- 4.0 / 5
Transamerica A 4.1 / 5

These policies are generally quite similar to each other, however, there are still quite a few variables that make each of them distinct.

Looking at things such as available issuing ages, the specific type of death benefit provided, the face value of the policy, and other additional features can help you separate the policies and find the one that is best for you.

AARP Burial Insurance – Takeaway

When compared to the other companies mentioned in this article, AARP’s Burial Insurance program is certainly competitive.

The 2 year waiting period for the policy to apply is fairly standard for the industry. The $100,000 coverage limit that AARP provides is considerably above average, making it an excellent option for those who believe their end of life expenses will be quite high.

Overall, AARP can be considered a reliable provider of burial insurance. With multiple different plans and a wide range of plan sizes to choose from, you can very likely find a burial insurance policy that can work to meet your needs.

Though thinking about things such as burial insurance can sometimes be uncomfortable, it still a very important thing to do. With a quality policy, you can gain the financial security you deserve.

How to Find the Best Burial Insurance Rates

There are hundreds of burial insurance options available on the market today. At times, this can be overwhelming.

Working with an independent life insurance agent is one of the easiest ways to find the best burial insurance rates possible for your specific situation.

Our agents work with dozens of the best life insurance companies and can help you understand your burial insurance options, and identify the best burial insurance policy for you and your family.

Give us a call today, or begin comparing rates with our quoting engine for instant quotes!

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About Burial Insurance Coverage
About Burial Insurance Coverage

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