Why are rates for AARP Guaranteed Acceptance Life insurance higher than rates for AARP Level Benefit Term Life insurance?
Initially, rates for permanent life insurance are almost always more expensive than term life insurance at the same age for several reasons. As the name implies, permanent life insurance can last for your entire lifetime and your rates can’t be raised just because you get older. Term life coverage rates increase as you age, and coverage may not be offered beyond a certain age. Another difference is that permanent life coverage can build up cash value over time while term life does not. Because AARP Guaranteed Acceptance Life provides guaranteed acceptance* without medical underwriting, the premium includes an extra mortality risk charge. Medically underwritten products are also available.
- Employee optional life insurance premium rates are based on coverage level, annual pay, tobacco usage status and age. Do I use my age as of enrollment?
- Can I take a loan against the cash value of my Guaranteed Acceptance life insurance policy?
- Why did the rates on my plan increase more than the lower benefit level plan(s)?