LIFE INSURANCE MIS - INFORMATION

[mq4475]

I Have been paying on my insurance acquired through AARP for the last 14 years. Handled ultimately by N.Y. Life. I retired July 2021 and in July 2022 I was notified that my rate would increase by $41.00 per month for the next 5 years. It would increase again in another 5 years. Let's remember that retired means fixed income. The notification letter states that you can change to a permanent plan which will prevent further rate increases. I expected that to mean my rate would be the same. Nope. I called NY Life and was hit with the bait and switch information. In order to have a fixed rate I would have to pay over $300 / month! That would be a 300% increase in monthly payments! Being irate and appalled I requested to cash the policy out and go somewhere else. Low and behold the policy I have been paying into, recommended by AARP,  is one that does not gain portfolio value. Read: NO CASH OUT VALUE! In order to benefit from this insurance I have to die and in the mean time keep paying higher rates every 5 yrs while on a fixed income. I am angry beyond belief that a group, whose sole function is to protect seniors, would perpetrate this falsehood for NY Life's growth. Thanks for nothing AARP!

[TigDave]

I have a plan like that, it is called Term? not positive that is what you have, but everything you say, is like my term. you know? i get hammered with offers to expand it to a whole life but i do not want whole life, i wanted term and i am happy with term. wife just passed and they paid fast too. I cannot log into my personal page now, have to change benfincery as my wife is not cashing anything now. spent an hour with customer service that could not do anything. just keep trying my end. it is their end, i deleted cookies. tried on 2 different browsers and on laptop and brand new tablet too. good luck

[jmj2005]

You are putting the blame on the wrong people.  You should look into a mirror in order to see whom to blame.  You bought a "term" policy 14 years ago and if you had taken the time to read what you were getting you would understand that your premium was going to increase over time.  They give simple explanations of what you can get via their program.  I had no problem at all understanding the difference between what they meant by "term" vs. "whole life".  The significant difference in monthly and annual premiums should have given you a hint.  

[GailL1]

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@mq4475 wrote:

 I am angry beyond belief that a group, whose sole function is to protect seniors, would perpetrate this falsehood for NY Life's growth. Thanks for nothing AARP!

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Who said AARP's sole function is to protect seniors?  Their mission states:  AARP’s mission is to empower people to choose how they live as they age.

I am sorry that you are upset over something that you thought you had that turned out to be something else.  If that is not the case, find your policy, read it and then take action.  

AARP Services, Inc. is the [profit-making] business arm of the organization that that puts together these branded with AARP name benefits for membership.

What type of policy do you have?    Have you read your policy?

There are many many different types and all the particulars should be documented in your policy. 

Currently they offer: 

1. Level Benefit Term
2. Permanent Life
3. Guaranteed Acceptance Life

14 years ago, they may have offered other types too - I don't know.

The disclosure is at the bottom of the page:

https://www.nylaarp.com/Life-Insurance/Get-a-Quote?cid=4L2C7G 

AARP does not recommend any insurance product - read the disclosure - they only receive royalties for the use of the AARP (R) name.  I doubt that you purchased it thru AARP either.

From the  AARP LIFE INSURANCE PROGRAM FROM NEW YORK LIFE benefit page:

AARP commercial member benefits are provided by third parties, not by AARP or its affiliates. Providers pay a royalty fee to AARP for the use of its intellectual property. These fees are used for the general purposes of AARP. Some provider offers are subject to change and may have restrictions.

The AARP Life Insurance Program is underwritten by New York Life Insurance Company, New York, NY 10010. AARP membership is required for Program eligibility. Specific products, features and/or gifts not available in all states or countries. New York Life pays royalty fees to AARP for the use of its intellectual property. These fees are used for the general purposes of AARP. AARP and its affiliates are not insurers. The life information material includes details on costs, eligibility, renewability, limitations and exclusions.

State Availability

Not all products are available in all states.

[JohnW150496]

FBI on Insurance Fraud

https://www.fbi.gov/stats-services/publications/insurance-fraud


be safe out there!