Complain about a product or service

AARP Life Insurance

AARP Insurance • • Auto • Homeowners • Life

Georgia of Houston (12/2/04):
AARP refuses my right to cancel my soon to be ex-husband's two policies upon divorce. A waiver must be signed saying that he no longer wants the insurance coverage and ONLY THEN will AARP stop drafting my checking account. The two policies are being drafted from my bank account. One policy is supplemental health insurance and the second policy is for life insurance.

I know my ex-husband will not waive either insurance just to make me continue to pay. But if I am divorced, must I continue these payments? He is on disability and so am I, so we are both covered by Medicare.

I cannot afford the coverage on someone else.

Georgia should discuss this with her divorce attorney.

Lori of Ambler PA (4/17/04):
I bought a term life insurance policy for $25,000 in direct response to an advertisement mailed to me by AARP, the organizataion to which I belong. This insurance policy became effective only 2 years ago on 4-2-02 when I was age 58. On March 3, 2004, the "AARP Life Insurance Program, New York Life" sent me notice of a rate increase: from $97.50 to $148.50 per quarter (3 months) -- a greater than 50% increase!

The customer service representative who took my phone call to confirm this was not an error (obviously from an outsourced call center in India) did not do any research to confirm the accuracy of the amount, responding "yes" in a mere second each of the two times I asked.

I have used a form on the Internet web site of the Pennsylvania Insurance Commission to ask them if this exorbitant rate increase is within the law in Pennsylvania. Within two days I received a phone call from a Commission representative, asking me questions then recommending that I fill out a Commission complaint form he would send to me, which I have done and mailed on April 13, 2004.

Answering the Commission's question as to how this problem should be solved, I said that it seems to me that there should be some requirement for insurance companies to reveal -- in advance of the purchase -- 1) the maximum rate increase to expect and 2) notification as to when the first increase would take place.

I feel that I have been taken advantage of in the worst way. After all, how many people would buy a $25,000 term life insurance policy, knowing that the cost could increase by more than 50% in less than two years?

Charles writes:
AARP and New York Life are offering life insurance but the kicker is they are offering it to "senior citizens" and then inquiring whether you consulted a doctor or had treatment for heart trouble, stroke, cancer, seizures, loss of memory, emphsyema, alcohol use, diabetes, kidney disease or failure, etc.

My concern is how in the world can any senior citizen over 55 or even 50 years old really say "No" to these questions? If a senior is in such perfect health condition, then they don't need life insurance. It also is ridiculous to even ask if you "ever consulted" with a doctor on these health conditons.

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