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Please contact AARP directly if you are a member and are looking for more information on AARP life insurance. Term Life is insurance coverage that has a set, pre-determined amount if the buyer dies during a specified time period. On the death of the person who is insured, term insurance pays the face value of the policy to the named beneficiary. All premiums paid are used to cover the cost of insurance protection.

The term may be 1, 5, 10, 20 years and even longer. The insurance coverage ends when the term of the policy expires. This is the lowest cost insurance policy to have because it is temporary insurance, meaning there is no savings account involved and it has and expiration date. A healthy 33 year old can often get a 20-year premium policy with a $200,000 face value, for between $20-$30 per month if they are a non-smoker.

Here is what term life insurance has for it's main attraction:

Temporary insurance protection
Low cost
No cash value upon expiration
You can sometimes convert permanent life insurance

Term insurance is the least expensive life insurance policy option that is available. Term insurance is selected for a certain period of time (term) such as one, five, ten or twenty years.

Term insurance is a good choice for young families with dependants and high debts (such as a mortgage) that they will be no longer be responsible for in 15 to 20 years when the policy ends. You do not need to be insured for as much if you, for instance, own your own home outright, in later there will not be a mortgage payment for your spouce to pay off. Term insurance has no cash value however - it cannot be borrowed against or cashed in, or used as a savings account like whole life. Also, the premiums will usually go up if the insurance expires and you want to renew.

That said, AARP does have a great insurance plan for seniors, as long as you can keep a good savings account with a bank or financial institutions through savings, mutual funds, stocks and bonds. AARP life insurance should be able to serve you well with it's low premiums.

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