Our firm has provided many accountants planning ideas and comparisons related to life insurance coverage.
Accountants often like to start the evaluation process by analyzing the cost and benefits of coverage currently provided to members of American Institute of CPA’s.
AICPA members have two different term life options to consider: Level Premium Term (LPT) and CPA Life.
You can also learn more about the plan details of the other AICPA life insurance before making any decisions.
In our review of the AICPA Level Premium Term Life we will look into two primary area:
- First, we will take a look at how AICPA level premium term life compares to the other group plan called CPA Life
- Next, we compare how AICPA level premium term life compares to individual policies you can buy in the open market
AICPA Level Premium Term vs CPA Life
A few similar benefits and a few notable differences with each term plan:
- Both group life plans are offered by Prudential for members to establish up to $2.5 million life insurance coverage.
- The Level Premium Term plan locks your rates for either 10 or 20 years, which differs from the rate increase every 5 years with the CPA Life option.
- LPT policyholders can continue the plan after the initial 10 or 20 year term has ended, but the rates will increase annually and coverage ends at age 95.
- Because of the ability to lock in your rates, the maximum age to apply for coverage is age 65, as opposed to 74 with the CPA Life option.
- You are able to qualify for a preferred health rating with Level Premium Term Life (LPT), assuming you are in excellent health and are also willing to go through the underwriting process with Prudential.
- Level Premium Term policyholders are also eligible for the annual cash refund on premiums paid.
- From the beginning, the AICPA has always paid a non-guaranteed cash refund to it's policyholders.
- The refund percentage can vary from year to year depending on the impact of the claims experience within the group.
Pro's to Owning AICPA Level Premium Term (LPT)
- Level Premium Term is ideal for those who have a few health issues
- Convenience of not having to take an exam required for a fully underwritten policy
- Prudential is a highly rated insurance company
Con's to Owning AICPA Level Premium Term (LPT)
- The cost of level premium term life is higher then individual term
- Must also be a member of AICPA
- The $2.5 million maximum amount on coverage
- The level premium term plan only allows 10 and 20 year coverage periods
- The cash refund is not guaranteed
AICPA Level Premium Term vs Term Life
AICPA Level Premium Term makes economic sense at younger ages, or if you have any serious health conditions.
However, as accountants get older the prices for life insurance are significantly more expensive than open market pricing.
If you are in decent health and over the age of 50, it is always cheaper to buy individual coverage outside of the group.
In other words, this AICPA level premium term life is overcharging you for life insurance for a year, and then giving you a refund.
We would also be happy to provide you with a complimentary cost breakdown AICPA life insurance rates by age.
You can easily make cost comparison between Level Premium Term and individual term life coverage. CPA's who are in decent health can always save money by purchasing an individual policy versus maintaining their group coverage.
Do you already know the prices you are paying for AICPA level premium term life?
Great, you can get started right away! Simply, use our life insurance premium calculator using your exact age and face amount that your need.
Since, many carrier offer life insurance, it is often hard for you to find the best life insurance rates in the USA.
We are very confident that you can save money by purchasing an individual policy versus buying the AICPA level premium term life.
We have streamlined the process of shopping for life insurance and monitor a network of many of America’s top life insurance companies.
Here is a list of companies which offer cheap life insurance and also have the highest ratings from the Better Business Bureau, AM Best, and J.D. Power.
Best Life Insurance Companies
|COMPANY||BBB ||AM Best ||JD Power|
|Mutual of Omaha||A+||A+||766|