Many accountants pay dues to access AICPA life insurance programs that provide members and their families with access to group life insurance coverage.
Our informative guide explains the program’s benefits and drawbacks and how it compares to individual term life insurance available on the open market.
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What is AICPA Life Insurance
What is AICPA Life InsuranceThe American Institute of Certified Public Accountants (AICPA) is the national organization for CPAs in the U.S., representing over 428,000 members.
AICPA life insurance is a collection of group life insurance plans offered exclusively to its members, their spouses, and eligible dependents.
The program is managed by the AICPA Insurance Trust, with policies issued by Prudential, a reputable company known for its financial stability.
Prudential’s group coverage offers flexible underwriting that’s generally easier to qualify for than fully underwritten individual coverage.
Members frequently compare AICPA life insurance options with individual term life insurance to determine which offers the best long-term value.
We will provide insights into AICPA life insurance programs by highlighting the key features and benefits of each group plan for accountants.
CPA Life and Spouse Life
CPA Life and Spouse Life insurance are the core group term life insurance plans designed for members and their spouses.AICPA life insurance offers an affordable option for younger accountants and flexible underwriting for individuals with pre-existing health conditions.
Prudential’s group coverage offers a simplified qualification process, enabling members to protect their families with ease.
These plans use a five‑year age‑banded pricing model, meaning premiums increase at ages 30, 35, 40, 45, 50, and beyond. This structure keeps coverage affordable for younger members but results in much higher costs as policyholders age.
As a result, many healthy accountants in their later years often find that traditional term life insurance offers better pricing and more predictable long‑term value.
CPA Life and Spouse Life also participate in the AICPA’s annual cash refund program, which can help offset rising premiums.
CPA Life Vs Term Life Insurance
Here are the CPA life insurance rates compared to standard term life insurance rates for a $500,000 policy for a male aged 55.
It’s important to note that the AICPA premiums increase every five years, whereas individual term life insurance locks in your rate for 20 years at a lower cost.
Even with the AICPA refund, which ranges from 10% to 40% depending on age and underwriting class, most members ultimately pay way more over time.
| Class | 55-59 | 60-64 | 55-69 | 70-74 | |
| CPA Life | Select | $140 | $270 | $485 | $970 |
| CPA Life | Standard | $270 | $480 | $845 | $1,510 |
| Term 20 | Preferred | $132 | $132 | $132 | $132 |
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Highlights of AICPA CPA Life
- AICPA membership is required to purchase CPA Life or Spouse Life
- Death benefits range from $10,000 to $2,500,000, depending on your age
- Premiums are based on five-year age brackets and increase as you enter each new age band.
- Three rate classes are available: Preferred, Select, and Standard
- Most members can qualify for coverage with minimal underwriting
- Spouse Life is priced separately and cannot exceed the member’s coverage amount
- Maximum entry age for new coverage is 74
- Benefits are reduced by 50% at age 75
- Coverage ends at age 80
- Eligible for the AICPA annual premium refund
AICPA Level Premium Term
AICPA Level Premium Term (LPT) is designed for CPAs who want predictable, long‑term pricing without the steep five‑year rate increases found in the CPA Life plan.
Level Premium Term locks in your premium for 10 or 20 years, providing stability during key financial periods such as raising children, paying off a mortgage, or planning for retirement.
LPT is a strong choice for healthy accountants who want lower preferred rates and are willing to complete a medical exam.
Those with minor health issues can still secure longer‑term coverage at standard rates, which are higher but available without an exam.
It’s good to know that Level Premium Term is also eligible for the annual cash refund, which can help reduce your effective premium.
However, an individual term policy lets you lock in your premiums for 10 to 40 years, and healthy CPAs often qualify for rates that are still cheaper than AICPA options—even after factoring in the annual refund.
Plus, older accountants can obtain new open market term coverage up to age 80, whereas LPT stops accepting new applicants at age 65.
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Highlights of AICPA Level Premium Term
- AICPA membership is required to purchase LPT
- Offers up to $2.5 million in coverage
- Locks in your premium for 10 or 20 years
- Rates increase annually after the initial term ends
- The maximum issue age is 65
- Coverage can continue until age 95
- Standard rates available with no medical exam
- Preferred rates are available with full underwriting and an exam
- Eligible for the AICPA annual premium refund
Group Variable Universal Life
Group Variable Universal LifeGroup Variable Universal Life (GVUL) is a permanent life insurance option that offers lifelong coverage and a cash value component that can be invested in variable subaccounts.
GVUL is often appealing to members seeking permanent coverage without the stricter underwriting required for many traditional universal life insurance policies.
However, GVUL uses five‑year age‑banded pricing, so your premiums rise repeatedly as you get older, and the cash value depends on market performance.
Like other AICPA plans, GVUL is eligible for annual cash refunds, which can help offset some of the cost—but not enough to counter long‑term price increases for many members.
Given these factors, we encourage accountants to compare alternatives, such as indexed universal life and whole life insurance.
These permanent polices offer an exceptional solution for accountants who desire the security of fixed premiums, lifetime coverage, and reliable cash value growth.
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Highlights of AICPA Group variable universal life
- Up to $2,500,000 of coverage
- Premiums increase every five years based on age brackets
- Coverage available to age 100
- Cash value grows through variable investment subaccounts
- Includes a fixed account option for more stable growth
- Tax‑deferred cash value accumulation
- Ability to take withdrawals and policy loans
- Eligible for the AICPA annual cash refund
- Easier underwriting than many traditional UL policies
AICPA Insurance Trust Refund
AICPA life insurance includes an annual cash refund, a unique benefit that sets it apart from most group life insurance programs.
Each year in mid‑February, the AICPA Insurance Trust may return a portion of premiums to policyholders based on the plan’s financial performance.
Refund amounts vary based on age and underwriting class, typically ranging from 10% to 40%. While a refund is not guaranteed, Prudential has consistently paid refunds for decades.
It exists because Prudential builds in a margin for higher‑than‑expected claims and returns any surplus when actual expenses come in lower.
Replacing AICPA Life Insurance
Replacing AICPA Life Insurance Many accountants choose life insurance through the American Institute of Certified Public Accountants because of its convenience, but rising premiums eventually lead them to explore individual term coverage.
We want to emphasize that AICPA coverage should be maintained by members with health conditions that often make obtaining traditional coverage with full underwriting difficult.
If you’re considering switching, the key is to determine whether you qualify for individual term insurance based on your age and health.
To qualify for life insurance, some carriers require a brief medical examination, while others provide convenient no-exam options, making the process remarkably easy.
To avoid any lapse in coverage, be sure that your new policy is fully approved and active before you decide to cancel your existing one.
From our experience working with accountants nationwide, most healthy AICPA members save money and lock in their premiums for a much longer period by choosing an individual term policy.
Our user-friendly life insurance calculator effortlessly streamlines the process of comparing your existing AICPA rates with those offered by leading insurance carriers in just a matter of minutes.
Compare AICPA Life Insurance Quotes
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FAQ: AICPA Life Insurance
FAQ: AICPA Life InsuranceDoes AICPA coverage remain active if I leave accounting? As long as you maintain your AICPA membership and continue paying premiums, your coverage stays active—even if you change careers or leave accounting entirely.
Can I own multiple AICPA life insurance policies simultaneously? Many members carry CPA Life alongside GVUL or supplemental spouse coverage, as long as they stay within the program’s coverage limits.
Does the cash refund decrease as I get older? Refund percentages often decline in older age brackets because claims increase with age. Refunds have been consistent for decades, but the amount you receive typically shrinks over time.
Does the refund apply if I cancel my policy mid‑year? If you were covered during the refund year, you may still receive a prorated refund in the following February, assuming the Trust declares one.
Are AICPA life insurance premiums tax‑deductible? Life insurance premiums are considered personal expenses unless tied to specific business purposes, which AICPA plans typically are not.
Can I convert AICPA term coverage into a permanent policy? AICPA plans do not offer traditional term‑to‑permanent conversion options, which limits long‑term flexibility compared to many individual carriers.
Can I increase my AICPA coverage without new underwriting? Certain age bands and special enrollment periods allow increases with limited underwriting, but larger increases typically require updated health information.
How much does AICPA membership cost? Membership fees are $340 per year and must be renewed annually. Different types of memberships are also available based on your status, such as affiliate and retired memberships.
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Affordable Life USA offers comprehensive life insurance solutions to families and business owners throughout the United States.
Our founder, Eric Van Haaften, developed his passion for quantitative analysis while earning his business degree from Ferris State University, which laid a strong foundation for his analytical approach to financial planning.
