AARP’s Stealth Fees Often Sting Seniors

padthaiforlunch · 01-30-2009, 09:45 PM

Dec. 4 (Bloomberg)

Arthur Laupus joined AARP because he thought the nonprofit senior-citizen-advocacy group would make his retirement years easier. He signed up for an auto insurance policy endorsed by AARP, believing the advertising that said he would save money. He didn’t. When Laupus, 71, compared his car insurance rate with a dozen other companies, he found he was paying twice the average. Why? One reason, he learned, was because AARP was taking a cut out of his premium before sending the money to Hartford Financial Services Group, the provider of the coverage.

IndyAgentIDTMY · 02-02-2009, 09:17 AM

I have encountered many Seniors who by their "guaranteed issue" Term life of 15,000 because A) It's AARP!, and B) Its Guaranteed! It's also a vehicle to boost their membership since you have to join to be eligible for these products.

For a group that claims to be there to "protect" seniors, I can't help but feel like they benefit more from selling these plans than their members.

Newby · 02-02-2009, 03:27 PM

Originally Posted by IndyAgentIDTMY

I have encountered many Seniors who by their "guaranteed issue" Term life of 15,000 because A) It's AARP!, and B) Its Guaranteed! It's also a vehicle to boost their membership since you have to join to be eligible for these products.

For a group that claims to be there to "protect" seniors, I can't help but feel like they benefit more from selling these plans than their members.

The AARP term is not guaranteed issue. They have a whole-life which is guaranteed issue. No coverage for the first two years and just generally overpriced unless you are in seriously bad health.

Their term plan has a few health questions and has a premium that increases every 5-years. Coverage ends at age 80.

People who buy AARP insurance are not generally price shoppers and they are not fine print readers.

Charpress · 02-02-2009, 06:03 PM

AARP was created by an insurance salesman to sell insurance. Is any of this unexpected?

As long as FINRA is taking over everything, I would like to see a disclaimer on every piece of AARP literature:

"AARP was created to sell you insurance. As such, it may not have your best interests in mind. Before buying any product from AARP, you are advised to shop from other insurance provider sources."