This write up might surprise some people and AARP members.  AARP is portrayed as an advocacy group for seniors, which they are good at.  But in my opinion they use their “protector of senior rights” reputation to add legitimacy to whatever marginal product that gives them the biggest profit margin.  Bold statement, I know.  Hear me out.

People have the notion that any product offered by AARP has passed some type of integrity or value test.  This is not the case.  AARP was formed by an insurance agent to sell overpriced policies to seniors.  It was split up in the 1980s by the government after it was exposed on “60-Minutes”.  Now it takes bids from insurance companies on who they will endorse.  There is no value test or protection for seniors on the products they recommend.

It has worked VERY well because seniors believe AARP is a group that looks out for the interest of seniors.  Seniors act as though buying an AARP product is the moral equivalent of buying insurance down at the local, non-profit senior citizen center.

AARP pushes a New York Life (NYL) life insurance product. Look through ALL their websites, magazines, TV commercials, newsletters and mailers; New York Life is the only life insurance company they endorse.  This product is overpriced and premiums go up every 5 years and disappear at age 80.  Hardly a good policy compared to what's out there. 

How is AARP getting away with this?  I can name 15 companies that can blow New York Life’s rates out of the water, remain level and last indefinately (if structured right).  I firmly believe that there isn’t one life insurer that’s the best for everyone.  How can a senior rights advocacy group EXCLUSIVELY recommend such a comparatively inferior product?  New York Life is a great company, but there are much better options.

They do the same thing with their Medicare Supplements.  United Health Care secured AARP’s endorsement and they are all over TV.  I can’t watch CNN for 15 minutes without seeing one of their medicare supplement commercials.  I went to the agent launch conference for AARP’s Medicare Supplement program in California.  I got their rate sheet and compared it to others in the industry and AGAIN, there are much better alternatives.

The government needs to break this incestuous relationship up.  It’s a fraudulent misrepresentation and seniors are getting taken advantage of.   I'm okay with them lobbying on behalf of seniors, I'm not okay with the way they use their name to sell to seniors.

Do you really want an advocate that looks out for you?  Talk to an independent insurance agent.  They will give you UNBIASED advice and are not advocates for any specific insurance company.  They are on your side, not any one insurance company.