One Reason AARP has Low Annual Dues

[mickeyd]

I fell off my chair when reading this article in a recent issue (July 2011) of Consumers Reports.

Imagine how low AARP insurance/other products would be if they were not scooping up over half a billion dollars in "hidden fees." Sure they can say "It's not AARP who is getting the kickback, it's AARP Services, a different organization". Are you still an AARP fan?

AARP Services, the for-profit arm of the nonprofit membership organization and a big player in affinity marketing, collected almost $657 million in royalty revenues from the sale of insurance and other products and services in 2009.
That means your premiums don't just pay the cost of your insurance. They also provide a subsidy to your association that averages 3 to 6 percent of premiums but can run as high as 29 percent. What do members get for that? In the 2003 study, about two-thirds were satisfied; the most common complaints were about premium increases, slow or inadequate claims settlement, and inadequate coverage.

Insurance Deals, Consumer Reports

 

[73ss454]

Just another business trying to get your money. In the last 15 years they must have spent 1000 bucks sending me membership info.. No thanks!

 

[REWahoo]

I wonder how much AARP and Hartford Insurance, who have some sort of sponsored relationship, spend spamming boards like this. Seems the mods are pulling the flush lever two or three times a month on a "new member" who signs up just to plug their producs. Odds are their Googlebots will see the references to AARP/Hartford on this thread and show up to sing their praises.

 

[mickeyd]

I wonder how much AARP and Hartford Insurance, who have some sort of sponsored relationship, spend spamming boards like this. Seems the mods are pulling the flush lever two or three times a month on a "new member" who signs up just to plug their producs. Odds are their Googlebots will see the references to AARP/Hartford on this thread and show up to sing their praises.

So how much will ya be gettin' Googlebot?

Googlebot...I love it.

 

[GregLee]

Imagine how low AARP insurance/other products would be if they were not scooping up over half a billion dollars in "hidden fees."

I don't understand this. The products would be lower without hidden fees?

In the many TV ads I see for AARP associated products, I also see disclaimers that AARP does not endorse the products. So I don't see any misrepresentation. As for the claims that AARP members get special discounts or some other preferential treatment, they're no different from other similar fluff, and anyone stupid enough to believe them deserves to be fleeced.

 

[gerntz]

AARP uses all of their memberships as a lobbying basis with government. No thanks.

 

[HawkeyeNFO]

Well, I signed up, and I'm still in my 30's! But all I wanted was their credit card. 5% cash back on all spending. Unfortunately, now I also get all of their left-leaning newsletters as well. The good part is that I have made hundreds of dollars from the card.

 

[dgoldenz]

AARP'S Medicare supplements are much more expensive than other companies in my state and I'm sure in most other states too. They also push their term-to-age-80 life insurance policies to people who are already in their 70's and most of these people think AARP is doing right by them, but don't even realize the policy terminates at 80 and think it's guaranteed forever just because it has the AARP name on it. If AARP really wanted to do what's best for their members, they would offer multiple products to get the lowest price for their consumers instead of slapping their name on a product and telling everyone it's the best. Bunch of garbage IMO....

 

[ohyes]

(Shallow) we joined AARP to get free entrance to Arkansas Traveler (minor league baseball team) games on Sunday. For that perk, we put up with all the mailings which went straight to the recycling bin.

And, then - they discontinued that sponsorship this year. I contacted AARP, but got no satisfaction. They emailed back to say they had discontinued that offer. (We already knew that).

So, boooo, hissss.

 

[youbet]

Just another business trying to get your money!

As is Consumer Reports. I wonder if anyone can name any "advocate organization" who isn't out for themselves as their number one goal and looking out for those they advocate for a distant second?

 

[73ss454]

Nope, they all suck! It's all about the buck.

 

[Nords]

Imagine how low AARP insurance/other products would be if they were not scooping up over half a billion dollars in "hidden fees."

My fault.

I paid $19.95 for the alleged & oxymoronic "online driver safety course" and was so disgusted that I didn't even want to haggle for a refund.

So all those electrons went unused and were pure profit to be recycled for the next [-]sucker[/-] student...

 

[chinaco]

It won't be long before you see a links on supermarket web sites trolling for prospects.... with a caption... what happens if you die from e. coli?? Are you prepared? Click this link to protect yourself of the ravages of e.coli! Of course a nice kick-back fee goes to the supermarket if the sale happens.

http://www.early-retirement.org/forums/f28/banks-peddling-annuities-55829.html

 

[Eagle43]

Does anyone belong to this org and if so, is it better than AARP? I heard a couple of radio ads for them but have never checked them out.

Member Discounts | AMAC, Inc.

 

[Independent]

As for the claims that AARP members get special discounts or some other preferential treatment, they're no different from other similar fluff, and anyone stupid enough to believe them deserves to be fleeced.

I think people (even smart people) need to learn about stuff like this in order to avoid being fleeced, we're not born with this knowledge. I see the Consumer Reports article and the OP as useful tools that people can use to understand the game.

 

[Delawaredave5]

Well, I signed up, and I'm still in my 30's! But all I wanted was their credit card. 5% cash back on all spending. Unfortunately, now I also get all of their left-leaning newsletters as well. The good part is that I have made hundreds of dollars from the card.

That's 5% for the first 6 months, then 1% thereafter, right?

 

[veremchuka]

Are you still an AARP fan?

I never was fan but I joined for the auto and home owners thru the Hartford's AARP program, rates were good. Then after rates rose year after year to an unacceptable level I found Amica (thanks to a co worker who also had no use for their left wing agenda) and I switched. Amica is a mutual company so you can opt for a dividend program. It costs a bit more but the dividend far exceeds the extra cost.

 

[target2019]

AARP has my vote. It's fashionable to tar and feather orgs as left-wing, but I just don't buy that.
To each his own. That is what freedom is about.

 

[HawkeyeNFO]

That's 5% for the first 6 months, then 1% thereafter, right?

Not exactly. After the first 6 month is up, I am cancelling the card, and Mrs NFO will sign up for one. After that 6 months, I'll sign up again. Once they stop giving us 5%, I'll use other credit cards. 1% cash back is not a very good amount these days.

 

[friar1610]

AARP'S Medicare supplements are much more expensive than other companies in my state and I'm sure in most other states too. They also push their term-to-age-80 life insurance policies to people who are already in their 70's and most of these people think AARP is doing right by them, but don't even realize the policy terminates at 80 and think it's guaranteed forever just because it has the AARP name on it. If AARP really wanted to do what's best for their members, they would offer multiple products to get the lowest price for their consumers instead of slapping their name on a product and telling everyone it's the best. Bunch of garbage IMO....

About 9 months before I became Medicare eligible I started getting flooded with solicitations for Medigap insurance. About half of these were from AARP. Now that my wife is within that window, it's her turn to fill the recycling bin with similar solicitations.

(For the record, I think Medigap insurance makes sense; we just don't need it because we are covered through a plan from a previous employer.)

 

[dgoldenz]

About 9 months before I became Medicare eligible I started getting flooded with solicitations for Medigap insurance. About half of these were from AARP. Now that my wife is within that window, it's her turn to fill the recycling bin with similar solicitations.

(For the record, I think Medigap insurance makes sense; we just don't need it because we are covered through a plan from a previous employer.)

I really don't care if they stamp their name on Medigap policies, but they are not doing what's best for their members by not recommending the lowest priced Medigap plan. Benefits for Plan F from company ABC are exactly the same as Plan F from company XYZ, but with different rates.

 

[devans0]

My mother dropped AARP after they endorsed G. W. Bush for president. She hated President Bush.