AICPA Life Insurance – Plan Benefits and Cost Comparisons

Affordable Life USA has proudly provided many accountants cost comparisons related to their own personal life insurance coverage for over 25 years.. Most CPA’s often like to start their evaluation process by analyzing the cost and benefits of AICPA life insurance currently provided to members of American Institute of CPA’s.

The AICPA is a well respected organization which 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

AICPA Level Premium TermLevel Premium Term

  • AICPA membership is required to establish AICPA Level Premium term insurance
  • Level Premium Term is offered allows members up to $2.5 million life insurance coverage
  • The 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 insurance also offers various health categories which you can qualify at Preferred, Select, or 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
  • Premium refund  is available

AICPA Insurance Trust Refund

AICPA Insurance Trust Refund

Both plans also offers CPA’s an annual cash refund each year in mid February. 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 Cash Refund earns no interest and is not a policy cash value, but is simply a return of your money.

While this often sounds like a great deal, accountants can evaluate the true cost with a little analysis.

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.

We have an example, comparing the CPA Life insurance rates by age with the applicable AICPA cash refund to life insurance rates available in the individual marketplace.

CPA Life Compared to Individual Coverage

 CPA life insurance rates by age vs 20 Year Term

         $500,000  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 $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 refund for select, 38% age 55-59, 28% age 60-74 (2015)
  • AICPA refund for standard, 20% age 55-59, 10% age 60-74 (2015)

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.

In other words, the AICPA life insurance rates are higher (even with the refund) compared to individual term life insurance for seniors.

If you would like to compare AICPA term life insurance rates by age with individual term insurance coverage, use Instant Life Insurance Quotes. Easily select the desired death benefit and term duration of 10, 15, or 20 years using our the life insurance premium calculator.

Group Variable Universal Life

So, we have looked at both  Level Premium Term Life (LPT) and CPA Life, and now will take a peek at Group Variable Universal  Life.

Group Variable Universal Life

  • Maximum of $2,500,000 of coverage
  • Coverage to age 100
  • Premiums increase 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

Group variable universal life has age bracketed premiums, along with a cash value component within the policy. The policies cash values can be invested in a variety of funds which can be evaluated by reading over the prospectus available on AICPA website.

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.

While, 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.

Universal life, variable universal life, or whole life should be considered if you are looking for lifetime coverage, as well as cash value accumulation.

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.

If you would like to compare AICPA life insurance rates by age with our permanent life insurance rates use Instant Life Insurance Quotes. Please select the coverage to age 90, 100, or age 120 on the life insurance premium calculator.

Wow, this sound interesting!

permanent life insurance

Should I replace my AICPA  life insurance policy?

These 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.

This process allows us makes accurate product comparisons between AICPA life insurance and a policy purchased from an individual insurance company.The underwriting process can take between 3-4 weeks depending on the details of your medical history.

If you have questions, please call our office at 1-877-249-1358.

Eric Van Haaften, LUTCF is the president of Affordable Life USA. We are a nationally licensed life insurance agency focused on finding our clients custom planning solutions at excellent prices. 1-877-249-1358. eric@affordablelifeusa.com