No Medical Life Insurance

AARP Life Insurance and Medicare Insurance: An Overview
 by: Evan Davis

The American Association of Retired Persons (AARP) boasts a membership of over thirty five million people aged fifty years and older. The massive non-profit organization is recognized as a political advocacy powerhouse whose influence seems to grow along with the “graying” of America. AARP, however, does not limit itself exclusively to legislative lobbying for its membership demographic; it also (in conjunction with established companies) provides insurance opportunities to its members. Two of these products include AARP life insurance and AARP Medicare health insurance.

*AARP Life Insurance

For well over ten years, AARP has been offering whole and term life insurance policies to its members in association with the New York Life. The AARP life insurance program offers plans featuring premiums touted as “affordable” that are specifically designed for people age fifty and older. Coverage amounts vary, with policies being available with benefits ranging from only a few thousands of dollars to fifty thousand dollars.

AARP life insurance is available to any AARP member between the ages of fifty and eighty. Spouses of AARP members may also receive coverage, so long as they are forty-five years of age or older. AARP life insurance does not require a medical exam. According to AARP, approval is based on answers to “three simple health questions.” Policies can be applied for via mail and the program touts the ease of application and approval as two of its strengths.

*AARP Medicare Insurance

AARP offers a health insurance policy designed to supplement the coverage provided by Medicare. This “Medicare Supplement Insurance” is offered in association with United HealthCare Insurance Company. Premised on the notion that Medicare generally covers slightly more than half of an individual’s health care expenses, AARP’s Medicare health insurance plan seeks to provide a means by which to cover costs such as co-insurance, deductibles and prescription medications.

AARP’s Medicare health insurance program allows members to continue utilization of their own physicians and is promoted with a focus on its ease of use, as well as its coverage. For instance, AARP members using this supplementary insurance plans are not required to fill out claim forms and the coverage is valid across the U.S., making it available for use when traveling and in other similar circumstances. According to AARP, rates for this insurance product are not increased based on age alone. Individuals are not to be “singled out” for rate increases, either. Rate changes are applied to all members of a matching class insured under the plan and residing in the same state.

AARP is one of America’s largest organizations and is one of its most politically powerful. In addition to using its membership to wield political clout, AARP has also used its massive membership as a group for insurance purposes. Teaming up with established providers like New York Life and United HealthCare, AARP offers its members insurance packages ranging from AARP life insurance to AARP Medicare supplementary health insurance.

About The Author

Evan C Davis works in Medicare customer service and is the webmaster and owner of Easy Insurance Finder. Find out about AARP life insurance at http://www.easy-insurance-finder.com/AARP.html and online life insurance quotes at http://www.easy-insurance-finder.com.

Chennai, April 11 (IANS) The Insurance Regulatory and Development Authority (IRDA) has asked 14 life insurers to defy the ban imposed by the Securities and Exchange Board of India (SEBI) on selling unit linked insurance policies (ULIP).

The IRDA, contending that the ban would bring the life insurance sector to a standstill, Saturday night directed the 14 insurance companies mentioned in Friday's SEBI order to 'continue to carry out insurance business as usual, including offering, marketing and servicing ULIPs in accordance with the Insurance Act, 1938, Rules, Regulations and Guidelines issued by it.'

Meanwhile, the life insurers — Aegon Religare, Aviva, Bajaj Allianz, Bharti AXA, Birla Sun, HDFC Standard, ICICI Prudential, ING Vyasa, Kotak Mahindra, Max New York, Metlife India, Reliance Life Insurance, SBI Life Insurance and TATA AIG — are expected to approach the court Monday to get a stay on the operation of SEBI's ban order.

According to IRDA, 7.03 crore ULIPs involving a total premium of Rs.90,645 crore were in force in 2008-09.

A total of 16.7 lakh policies were sold with a total premium of Rs.44,611 crore between April 1, 2009 and Feb 28, 2010. The 14 insurance companies had an equity capital of Rs.16,281 crore as on March 31, 2009, it said.

The insurance regulator observed in a statement that the SEBI order would cause the stoppage of all renewals of insurance policies already invested in by the public.

It may result in the forced premature surrender of insurance policies, causing substantial loss to the policy holder and to the insurers, destabilising the market and upsetting financial stability, IRDA added.

ULIP constitutes nearly 90 percent of the sales for many private life insurers. The industry average will be around 85 percent.

With this the turf war between the two financial sector regulatory bodies has intensified.

'The ULIPs launched by these entities were prima facie found to be akin to the mutual fund schemes and were launched without obtaining registration from the SEBI. ULIPs are a combination product and the investment component need to be registered with and regulated by SEBI,' said Prashant Saran, whole-time member of SEBI, in the order.

IRDA said in a statement: 'Policy holders of the Unit Linked Insurance Products (ULIPs) offered by different insurance companies are assured that these policies are safe and secure and the matters arising out of the recent orders of the SEBI will be addressed expeditiously in the appropriate forum in accordance with law.'

The ban has come into force with immediate effect. The SEBI had issued showcause notices to all these companies in January.

Indo Asian News Service