AARP Long Term Care Insurance: 2020 Update
AARP has been an advocate of Long Term Care Insurance and has some excellent coverage on the topic on their site. If you're looking for AARP's LTC insurance rates, however, read on...
Since 2016, AARP has partnered with New York Life to offer LTC policies to its members. But it may be wise to compare the AARP/NY offering against some of the other insurers in the market.
While most services are indeed cheaper with an AARP discount, insurance products are more complex and based on your age, health, state, and even marital status. There are also more robust policies from other A+ and A++ rated insurers in some cases.
Save Money by Comparing Long Term Care Rate Plans
Like virtually any insurance plan, the key is to compare plans from various carriers, and we built the CompareLongTermCare.org comparison market just for that purpose.
By viewing competing premiums from the major A+ rated "blue chip" insurance companies side-by-side, you are quickly able to find the nexus of value and company strength. By that we mean it may be worth paying a bit more if you are able to buy coverage from a financially-superior insurance plan.
Significant Differences in Coverage
The AARP Long Term Care Insurance plan may not stack up to other options on the private market.
Home Care: New York Life's policies often limit Home Care (where you're most likely to actually use your coverage) to 80%. That can add up to thousands of dollars a year in lost benefits versus competitive offerings from MassMutual or Mutual of Omaha, for example. (Both offer a 100% home care option - meaning you can tap your full daily benefit for home care without limitation).
Policy Benefit Period: In an example quote we ran for a 55 year old in Florida, NY Life limited the policy benefit period to just 3 years, barely at the averages for claim length. MassMutual offers 6 years in the same state, and at a lower total premium as of January 2020!
While the AARP plan may be a good fit, we must reiterate that comparing your options with an independent broker makes sense.
History of the AARP Long Term Care Insurance Options
In years past, the AARP Long Term Care Insurance plan was one of the premium LTC policies on the market. AARP-endorsed plans always had competitive rates and have traditionally included extra bells and whistles. AARP endorses top-quality companies in all of its products, ranging from travel to insurance to cell phone plans.
In late 2013, AARP's marketing agreement with Genworth Long Term Care ceased to exist, leaving AARP members with the freedom to not select from just one carrier, but from many plans on the competitive market.
Prior to all that, AARP endorsed MetLife LTC plans, then moved to Genworth after a few years, and now works with New York Life. B
Sample AARP Long Term Care Insurance Premiums From The Past
We ran some historical rates of past AARP LTC policy forms. Here are sample premiums for a $5,000/mo benefit, 5 years, with no automatic inflation protection, for a 60-year old single male:
|AARP Flex Choice||AARP Group Plan By Genworth||AARP My Future My Plan 2011|
|5 Years||5 Years||5 Years|
|Guaranteed Purchase Option||Purchase Option Inflation||Future Purchase Option|
|$1,944.60/year premium||$2,434.08/year premium||$2,876.70/year premium|
|No other riders included||No other riders included||Included 0-day Home Care & 10y Survivorship.|
*All of these polices have been withdrawn, the table is for historical comparisons.
As you can see, over the years and in subsequent generations of policies, the cost for coverage changed quite a bit for similar coverage. This same coverage on a modern policy (2014) would start at around $2,596/year (less than the 2011 AARP rates).
Request a quote from us and we'll shop all of your options - including past AARP affiliated companies' rates.