Affordable Life USA has proudly provided many accountants cost comparisons related to their own personal life insurance coverage for over 25 years. Many accountants begin their evaluation process by analyzing the cost and benefits of AICPA life insurance currently provided to members of American Institute of CPA’s.
Since 1947, AICPA insurance programs have been available to meet the various insurance needs of members and their families. AICPA life insurance offers member's group life insurance through Prudential.
We will be reviewing the highlights of all three of the AICPA life insurance plans: Level Premium Term Life (LPT), CPA Life and Spouse Life, and Group Variable Universal Life.
We are very familiar with all three of the AICPA insurance plans. So, we can provide you with a complimentary cost comparison of each plan's life insurance rates by age.
Not to mention, this analysis will also help you determine if you can save money by purchasing an individual policy versus maintaining your group coverage.
AICPA Life Insurance
Each plan under the AICPA Insurance Trust:
Level Premium Term Life
CPA Life and Spouse Life
Group Variable Universal Life
Level Premium Term
- AICPA membership is required to establish AICPA level premium term insurance
- Level premium term allows members up to $2.5 million life insurance coverage
- AICPA level premium term locks your rates for either 10 or 20 years
- Ideal for those who have a few health issues and do not want to take an exam
- You are also able to qualify for a preferred health rating with level premium term life
- Preferred health rating requires you to go through the underwriting process with Prudential
- 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
- Premium refund is available
CPA Life and Spouse Life
- AICPA membership is required to qualify for CPA Life and Spouse Life
- The death benefit’s can range in amount depending on your age from $10,000 - $2,500,000
- Both CPA Life insurance and Spouse Life insurance are age bracketed every 5 years, which means these AICPA life insurance rates will go up in cost every 5 years
- CPA Life also offers various health categories which you can qualify at: preferred, select, and standard rates
- Most people can qualify for coverage
- Your spouse is priced separately and can not have any more coverage than you
- The maximum age of eligibility to begin this plan is 74
- The coverage decreases by 50% at age 75
- Coverage ends at the age of 8o yeas old
- A premium refund is available
AICPA Insurance Trust Refund
The AICPA Insurance Trust is currently administered by AON.
The AICPA Insurance Trust always sends out it's annual premium refunds in February. So, both term plans under the AICPA life insurance umbrella offer accountants an annual cash refund each year in mid February.
The AICPA refund available is between 10-40% and is calculated based on your age bracket and underwriting class. As you get older your premiums will get more expensive and the refund available decreases.
From the beginning, Prudential has always paid a non-guaranteed cash refund to it's policyholders.
However, the refund is not guaranteed and fluctuates based on what Prudential doesn't use for claims or overhead.
Prudential is simply overestimating the cost for coverage to give itself a buffer in the event it has a higher claims for the year.
The AICPA life insurance cash refund earns no interest and is not a policy cash value, but it is simply a return of your money.
In other words, the CPA life insurance plan is overcharging you for life insurance for a year, and then giving you a refund.
While this often sounds like a great deal, accountants can evaluate the true cost with a little analysis of the AICPA benfits.
CPA Life Compared to Term Life
The AICPA life insurance rates make economic sense at younger ages, or if you have any serious health conditions.
However, as accountants get older the AICPA life insurance rates by age 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 term coverage outside of the group.
Quick Example: Here are the CPA life insurance rates with the applicable AICPA cash refund vs the cost of term life insurance rates age 55 and older available in the individual marketplace.
CPA Life Compared to Individual Coverage
| Term 20||Preferred||$1322||$132||$132||$132|
- Male, $500,00, age 55, non smoker, preferred plus
- Term 20 is example price for $500,000, 20 year term
- AICPA life insurance refund not applied
- AICPA trust refund 2017, select, 38% age 55-59, 28% age 60-74
- AICPA trust refund 2017, standard, 20% age 55-59, 10% age 60-74
Before you make any decisions on AICPA insurance, please run cost a comparison!
Which is cheaper individual term life or AICPA life insurance?
Affordable Life USA makes finding the insurance companies that have the best rates for people simple and easy!
You can select the desired death benefit and term duration of 10, 15, or 20 years using our the life insurance premium calculator.
Press “Get Quote” to find your great term life rates:
We have now evaluated the pro's and con's of both of the AICPA term life plans. So, let's take a peek at the AICPA gvul "or " group variable universal life.
Group Variable Universal Life
- Maximum of $2,500,000 of coverage
- Coverage to age 100
- Premiums increases are on age-bracketed 5 year basis
- Life insurance coverage to age 100.
- Tax-deferred investment options, and a fixed account
- The ability to make withdrawals and loans
It is important to remember, that AICPA group variable universal life has age bracketed premiums, along with a cash value component within the policy.
The cash values within Prudential group universal life insurance can be invested in a variety of different funds. These funds will require a basic understanding of these funds which can be evaluated by reading over the prospectus available on the AICPA insurance website.
However, AICPA group variable universal life acts much like a five year term policy coupled with a forced savings element. If you are considering this policy, please read the prospectus to determine the overall cost of ownership during your lifetime.
Keep in mind, that most guaranteed universal life insurance sold in the individual marketplace provide a lifetime level guaranteed premium as well cash value accumulation. This means that the premiums will never go up in cost for the entire duration of your policy.
Since, the premiums with open market companies can be guaranteed to last for a lifetime, a cost comparison should also be conducted to determine which plan better suites your needs.
You should consider permanent policies such as universal life, variable universal life, or whole life, if you are looking for lifetime coverage, as well as cash value accumulation.
If you would like to compare AICPA life insurance rates by age with our permanent life insurance rates use universal life insurance calculator.
Press “Get Quote” to find your great rates on life insurance:
The Life Insurance Qualification Process
Wow, this sound interesting!
Should I replace my AICPA life insurance policy?
Individual term life policies are medically underwritten, so it is important check into whether you can qualify for coverage before switching coverage.
First, your general medical history is evaluated to determine which company may be best suited for your particular medical profile. Most companies also require a brief insurance examination.
Your medical information is submitted to several highly rated companies to determine which carrier would be willing to offer coverage at the most competitive rate class.
The underwriting process can take between 3-4 weeks depending on the details of your medical history.
This process allows us makes accurate product comparisons between AICPA life insurance and a policy purchased from an individual insurance company.
Top Life Insurance Companies
Since, many companies sell life insurance, it is often difficult for you to find the best life insurance rates in America.
We are confident that you can save money by purchasing an individual policy versus buying the AICPA life insurance coverage.
We have streamlined the process of shopping for life insurance and monitor a network of over 186 of best life insurance companies in the USA.
Here is a list of companies which offer affordable life insurance and the highest ratings from the Better Business Bureau, AM Best, and J.D. Power.
|COMPANY||BBB ||AM Best ||JD Power|
|Mutual of Omaha||A+||A+||766|