BBS is right. You purchased a term policy which matures at 80. You need to purchase a whole life policy which will never mature even if you live to be 101 as long as you pay the premium. Another option is to contract with a funeral home for a prepaid whole life policy.
In our state (Maine) you can set up a funeral trust at a funeral home, which is held at a bank. You aren't obligated to use that funeral home, and your representative can request the funds be used at a different place after you pass away. The disadvantage is that you have to have the money up front to set up the trust. The funeral trust is not counted as an asset if the person has to apply for Medicaid.
Writer doesn't mention who is selling the policy, but here is an explanation of the AARP 50+ term life insurance:
"...it is a term life insurance policy... your coverage ends at 80 and you are no longer protected. You don’t get any money back, and you don’t have the option to take out a new term policy. At 80, your only option would be to get a whole life policy with them or another company. While getting life insurance after 80 is definitely possible, it will be significantly more expensive because of your age." Also mentioned is that the rates increase every 5 years.
Depending on how old you are when you buy $10,000 worth of this coverage, you'd be better off putting the monthly premium amount in a savings account, which will add up to $10,000 over time. I'm surprised AARP would endorse a policy like this.
No, I don't think so. Depends on the language. If the policy itself is gone at 80 that seems odd indeed. Many many people live longer than 80 years these days. Call and ask for the details by phone on the policy this week. Remember, if you cannot read and understand it now, it will represent a problem in the future. What about interviewing some for prepaid funeral, making certain it is a reputable and long standing establishment?
"...it is a term life insurance policy... your coverage ends at 80 and you are no longer protected. You don’t get any money back, and you don’t have the option to take out a new term policy.
At 80, your only option would be to get a whole life policy with them or another company. While getting life insurance after 80 is definitely possible, it will be significantly more expensive because of your age." Also mentioned is that the rates increase every 5 years.
Depending on how old you are when you buy $10,000 worth of this coverage, you'd be better off putting the monthly premium amount in a savings account, which will add up to $10,000 over time. I'm surprised AARP would endorse a policy like this.
https://choicemutual.com/aarp-burial-insurance-review/#term