Question About Life Insurance.

[Suzanne R.]

I know this is normally a site to lend support and vent our feelings, but I have been consumed with concern about another issue in which I would like to obtain knowledge. Does anyone know if AARP is reputable for their benefits specifically their life insurance policy. I don't want to start paying premiums and then have my 2 adult sons find out later that they don't/won't pay for the remainder of my funeral expenses. I don't even know how it works. Is there another life insurance that anyone has or knows about that's better? I need to get this straightned out before anything should happen to me and I wouldn't be able to be buried next to my husband when my time comes. I want to have one less thing to worry about right now. I don't want any more stress in my life than need be. And I know you all understand how it is going through this grief. I want to express to everyone here also how I still remember you all in my prayers. Peace to you all.

God bless,

Suzanne

[mlg]

Suzanne

I don't know of anyone who has had to collect from the life insurance but I do know some that use their home and auto insurance and have not had trouble. I know that they use to use the Hartford Ins. and that was a reputable agency as far as I know.

[JamesI]

Suzanne:

My brother and I took out an extra life insurance policy through AARP for my mother in 1999 and she passed away on March 20, 2009. It was AARP, but, New York Life Insurance handled it. They paid it out with no problem in less than 30 days. Just know that they offer different policies. The policy we had for my mother was for $5000, but changed to $2500 at age 85. My mother passed away at age 87. You may also check out SBLI USA.com... I am not sure if they may offer sbli in all states. You may also consider Hartford Insurance as Mary Linda suggested. We use Hartford for our homeowners ins and they are a reliable company. I am sorry for your loss and wish you and your family well.

take care,

James

[Kat2005]

Suzanne,

I don't know anyone that has AARP life insurance. My mom has AARP as her supplemental insurance with Medicare. She hasn't had any problems with them.

Kat

[ipswitch]

It depends on what kind and how elaborate one's funeral is, and how high a policy one has purchased as to whether the life insurance will pay the whole thing.

You may not need a life insurance policy. That is typical for people who would leave behind children, or spouses who haven't the income to care for themselves.

I know my Mom and Dad purchased adjacent lots in their local cemetery for "when the time came." My Dad has been buried there, and my Mom will go right next to him. That is just the cemetery lot though, not all the other expenses- the service, the cremation or embalming, transporting the body

It would have been easier for me if Jeff and I had had a chance to discuss this more. My mother-in-law had cancer of the colon which was deemed terminal by the time it was discovered. About a week or two before she passed, she had discussions with her pastor about the service she wanted.

One thing that is advertised around here a lot is pre-planning one funeral. For many folks, it make sense to them to have all the decisions made. The benefit touted is next of kin aren't trying to make the decisions, and possibly be taken advantage of, while they are grieving. (Now you've got me thinking, Suzanne, because I don't have any children to plan mine).

I just looked up pre-paid funerals, and there are pitfalls there, too. Here is one article that gives some practical advice on pre-planning. One remedy is called a Totten trust. If you wish, you may follow the link below:

http://www.usnews.com/money/retirement/articles/2008/02/15/should-you-prepay-your-own-funeral-expenses.html

I think Suzanne has asked a really good question. I wonder if the moderators would be open to creating a category for the more nuts and bolts questions of dealing with the death of a loved one. I picked an attorney out of the yellow pages, and he seems like a competent fellow. It turns out that he also is the attorney for a friend of mine. I didn't ask any of my friends for referrals because I assumed they all had legal help in the Big City where they live. One shouldn't assume.

[Suzanne R.]

Thank you all for your replies and the links. You have been very helpful.

God bless you all.

Suzanne

[MartyT]

Suzanne, dear ~ My son Chris happens to be an experienced and well respected life insurance agent in the Phoenix area. Whenever I have a question about insurance matters, he is the first person I turn to for advice, because I trust him completely. I took the liberty of sharing your question with him earlier this morning, and here is his response:

Mom,

I would advise Suzanne that buying a policy through AARP would be just fine. What she needs to know is that AARP itself does not underwrite the policy. AARP contracts with a life insurance company to offer their policies to AARP's members as a member benefit. Because AARP is seeking to provide a broad array of quality benefits to their members, it would be VERY unusual that they would contract with a disreputable carrier. I saw a comment in the reply string that mentioned New York Life - who is an EXCELLENT insurer.

As an AARP member, she might get a better value for her premium dollar as often these plans reflect a group type of rate rather than a true individual rate. They do this because the company has a very select group to whom they are offering coverage. I would recommend that she look at a small whole life policy (permanent life insurance) in the amount of $5,000 to $10,000 of benefit. I checked AARP's website and they do in fact have a program offered to members through New York Life.