FAQs

Learn more about life insurance products, managing your coverage and account, filing claims, and find answers to other common questions.

About AARP Term Rider Protect Plus

This term rider is additional life insurance coverage that attaches to your existing life insurance contract to provide added protection until it ends, at age 80.

The rider is an option that can help close any gaps you may have between your current coverage amount and the amount that your loved ones may need. Costs like medical or funeral expenses increase steadily over time, and as our lives change, our financial situation often does as well. The rider is an easy and reliable way to help your loved ones get a benefit amount that can reduce the worry out of those changes.

One way is to determine if you have enough coverage is to consider the expenses you want your life insurance to cover for your beneficiaries. You can find more information about costs that may affect your beneficiaries here.

If you find your coverage isn’t enough to help cover the expenses they might have, then applying for a rider could be a smart way to strengthen your protection.

You can apply for any amount between $2,500 and as much as your current coverage, until you reach a total coverage of $150,000. For example, if you currently have $15,000 of protection, you can apply for up to $15,000 in rider coverage. If you have $100,000 of current coverage, you can apply for a rider up to $50,000.

The additional coverage can last until age 80. You just need to make sure you make payments when due, your Enrollment Form contains no material misrepresentations about your medical history, and you keep your existing coverage in place.

That’s not a problem. You can choose to exchange your rider for permanent life protection, and then it can last for life. Your rate will be determined by your age when you exchange.

Yes. Many customers find their protection needs increase at different times, and you can add as many riders as you need (with a limit of $150,000 in total coverage) to help your coverage stay up to date.

It’s easy. No medical exam is needed - your acceptance is based on your health information and other information you provide or give us permission to obtain. You can even log in or create your account and apply online right now.

Yes, there are two important ones:

There’s the Accelerated Benefit, or Living Benefit. This lets you use up to half of your coverage amount if you’re diagnosed with a terminal illness and given either 12 months or 2 years (or less) to live. Your current contract determines which time period is accurate for you.1

The rider also includes the Waiver of Premium for Nursing Home Stays. This means for certain qualified, doctor-ordered nursing home confinements, your premiums will be waived after 180 consecutive days.2

Exchanging Your Term Coverage

It’s the feature included in your term life insurance that lets you switch your coverage from term to permanent life insurance, guaranteed - with no health questions or medical exams.

We regularly remind customers about their option to exchange for three important reasons:

1) To make sure you can easily exchange if there is a time best for you. The rate you pay for permanent life insurance is based on your age when you switch and then never goes up … so the earlier you exchange, the lower your monthly rate will always be. While the rate for permanent life insurance is higher than the term rate, it will never increase — it’s locked in for life. Some customers find that easier to budget than waiting until later.

2) So you never have to go uninsured. When your term coverage expires at age 80, and you choose not exchange it, other life insurance can be difficult or may be impossible to secure. Switching to permanent life insurance that can last as long as you live helps ensure you can always provide a level of protection for your loved ones.

3) So it’s easy to understand and simple to do. The exchange option is one of the most popular features of term coverage, so we want to make sure you are aware of this benefit and if you choose you can use it on any premium due date.

It’s completely your choice. The Guaranteed Exchange Option is a built-in feature of your term insurance; it’s there for you to use when you want, or not at all.

Certificate age is calculated based on your contract anniversary, as opposed to your actual age. Here’s an example: say your life insurance started on January 15th and you were 55 years old…then your 56th birthday was in February. Your certificate age would remain 55 until your next year’s contract anniversary, the following January 15th.

Cash value grows gradually over time, as you make payments on your coverage. The benefit to having cash value is that you can choose to borrow against it if you need to, even to pay the premiums on your contract, if you choose.3

When you exchange term coverage for AARP Permanent Life insurance, there is a certain point when no further payments are due. This is called “paid up”. The exact time coverage becomes “paid up” depends upon your age, gender, and smoker status, but the latest it would be is by certificate age 95.

There are a couple of reasons that permanent life premiums are generally more than term life premiums. First, the premium rate is guaranteed for life - so whatever age you are when you switch to permanent life, that’s the rate you’ll pay for as long as you’re insured. It also builds cash value, and payments stop by age 95. The cost of permanent life insurance is calculated to account for those factors.

Yes, in fact, that’s a popular option for customers who want the benefits and locked in rate for permanent life insurance now, but also keep some protection with lower initial premiums, which term coverage offers. All you’ll need to do is call (800) 249-7047 and ask to make a partial exchange.

It’s easy. Log in to your account now and go to “Exchanging Term Coverage” - or you can mail in the Exchange Form you received.
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1 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.

Texas residents: Death Benefits will be reduced if a “Living Benefit” (accelerated death 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.

2 The nursing home must be primarily engaged in providing skilled nursing care under the supervision of a licensed physician. Nursing home does not include a home or facility used primarily for rest; for the care of drug addicts or alcoholics; for the care and treatment of mental diseases or disorders; or for custodial care.

3 Loans accrue interest and decrease the death benefit and cash value by the amount of the outstanding loan and interest.

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