Although it’s not an insurance carrier, AARP offers a long list of products and services to its members, including insurance and annuities. This powerful entity was initially established in 1958 by a retired educator named Ethel Percy Andrus, and Leonard Davis, who were looking for a way to assist retirees and pre-retirees with productive aging, as well as a way to obtain health insurance.
AARP is headquartered in Washington, D.C. It also has offices in all 50 of the U.S. states. Originally referred to as the American Association of Retired Persons, AARP is a non-profit, non-partisan organization that has a mission of addressing the interests and needs of those who are seniors and middle-aged.
As of year-end 2018, AARP had approximately 38 million members from coast to coast. Due to its massive membership (who all pay yearly dues to belong to the organization), AARP does not have to rely on private donations or government grants.
There are several entities that are affiliated with AARP, such as the:
- AARP Foundation – This non-profit charity assists people who are over the age of 50 with making charitable donations, as well as with educating and mentoring school children.
- AARP Services Inc. – AARP Services is a for-profit corporation that offers research and quality control.
- Legal Counsel for the Elderly – A non-profit charity, the Legal Counsel for the Elderly provides legal assistance to seniors who reside in the Washington, D.C. area.
- AARP Financial Services Corporation – This corporation holds real estate that is owned by AARP.
- AARP Insurance Plan – The AARP Insurance Plan is an entity that holds some of AARP’s group insurance policies.
Retirement Annuities Offered through AARP
Because AARP is not an actual insurance carrier, the organization provides retirement income plans through New York Life Insurance Company. The AARP Lifetime Income Program from New York Life and Annuity Corporation offers simple annuities that can turn a portion of savings into a guaranteed income stream for life.
New York Life Insurance and Annuity Company – one of the oldest insurers in the U.S. today – is the only insurance company that is trusted by AARP to provide annuity products to its members.
One reason for this could be that New York Life is the number two provider of income annuities. In addition, this insurer has the highest possible ratings that are given by the four insurer rating agencies. These include:
- A++ (Superior) from A.M. Best (as of October 2, 2018)
- AAA (Exceptionally Strong) from Fitch (as of July 25, 2018)
- AA+ (Very Strong) from Standard & Poor’s (as of July 19, 2018)
- Aaa (Exceptional) from Moody’s Investor Services (as of January 18, 2019)
New York Life has been in business for more than 175 years. In addition to retirement annuities, it offers many other products and services, such as:
- Life insurance
- Long-term care insurance
- 529 college savings plans
- Estate planning and wealth management
This insurance carrier holds roughly $586 billion of assets under management and nearly $25 billion (according to its 2018 annual report) in reserves, so the company is well prepared to meet its commitments to its policy holders.
Plus, New York Life has also consistently paid out dividends to its qualifying policyholders in all types of economies, including before, during, and after the Great Depression, and the more recent Great Recession of 2008.
With AARP’s endorsement, New York Life offers both a deferred and an immediate annuity option so that members at any stage of their lives can protect principal, and ensure that they will have an income that can be counted on in the future.
Is a New York Life Annuity Purchased Through AARP Right for You?
But even if you consider the financial strength of New York Life, along with the endorsement of AARP, are you really getting the right annuity for your needs?
Annuities are fraught with page after page of “fine print,” which can actually make it confusing to determine exactly how the product works, and whether or not it may be the best financial tool for your objectives.
That’s where having an expert like Annuity Gator comes in.
Our mission is to provide consumers with the best possible information about annuities so you can more easily determine which annuity is right for you – or even IF an annuity will work in your portfolio.
So, if you still have questions about AARP and the annuities that are offered through the organization, give us a call at (888) 440-2468, or email us through our secure online contact form and set up a time to chat with one of our annuity experts.
The Annuity Gator
P.S If you would like to read more of our AARP annuity reviews here are some links to check out: