If you have been paying AARP life insurance for years and discover a more favorable policy, start by reviewing your current contract for surrender charges, renewal clauses, and any guaranteed benefits that could be lost by canceling early.
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Check Your Existing Policy Details
Locate the original policy document or log into your AARP account to verify the face amount, premium schedule, cash‑value (if any), and any riders attached. Note the policy's age, as older policies often have lower premiums but may include non‑forfeiture guarantees that disappear upon cancellation.
Compare Alternatives Objectively
Gather quotes from at least three reputable insurers. Focus on comparable coverage amounts, term lengths, and riders. Use a spreadsheet or the table below to line up key attributes, ensuring you compare apples‑to‑apples rather than being swayed by marketing slogans.
| Attribute | Your AARP Policy | New Quote |
|---|---|---|
| Coverage Amount | Enter amount | Enter amount |
| Premium (monthly) | Enter amount | Enter amount |
| Policy Type | Whole/Term | Whole/Term |
| Surrender/Cancel Fees | Yes/No | Yes/No |
Evaluate Financial Implications
Calculate the net cost of switching: add any surrender charge from AARP, the new premium difference, and potential tax consequences of cashing out a cash‑value policy. If the new policy saves money over the long term without sacrificing needed guarantees, the switch may be justified.
Plan the Transition
Do not let a coverage gap occur. Apply for the new policy first, and once it is bound, submit a formal cancellation request to AARP. Request a written confirmation of the cancellation and keep a copy of the new policy's effective date.
Consider Professional Guidance
If the math feels complex or you have unique health considerations, consult a licensed insurance agent or a financial planner. They can verify that the new policy meets your needs and that the cancellation process complies with state regulations.