Unfortunately, many CPAs don’t think twice about the life insurance they receive from the American Institute of CPAs (AICPA). Why wouldn’t they considering the AICPA is a great organization? The main reason CPAs may want to read our AICPA Life Insurance Reviews post is because the plans they’re offered can often be found at a better price.
You see, AICPA doesn’t actually sell life insurance. They offer a group plan which is provided by Prudential Life – one of the best life insurance companies available. However, this plan is usually much more expensive compared to the options you have in the open market.
AICPA Life Insurance Overview
Review Summary
Our AICPA review will hopefully save you some time (and stress) of clicking through various pages on the AICPA website. We will help you understand the AICPA options as well as options from the individual market. At the end, you'll hopefully see how the life insurance coverage through the AICPA compares to your other options.
AICPA Life Insurance Review
The AICPA has over 400,000 members. The basic business principal of “buying in large numbers” to lower costs for shoppers is a great idea and usually works. So when the AICPA funnels a large number of CPAs to Prudential, you’d think that you’d get a great deal.
Unfortunately not.
In this case, “Group Life Insurance” plans overall will cost you more compared to an “Individual Life Insurance Policy”. If you’re relatively healthy, you can be pretty confident that you’ll get a much better rate shopping around for your life insurance.
Buying Coverage from AICPA
AICPA provides their members a variety of options for not only individuals, but also businesses. When you’re an individual, you can purchase so many types of insurance from AICPA. These policies include:
- Long Term Care
- Long Term Disability
- Homeowners Insurance
- Auto Insurance
- Catastrophe Medical
- Life Insurance
AICPA Life Insurance Options
You have 3 options for life insurance coverage through the AICPA.
- CPA Life and Spouse Life Plans (AKA: CPA Term Life)
- Level Premium Term & Spouse Level Term Life Insurance
- Group Variable Universal Life
CPA Life and Spouse Life Plans
This life insurance plan is issued by the Prudential life insurance company. This life insurance policy isn’t only for AICPA members. It’s also offered to eligible organizations like the State Society members. One of the great features is that you can apply for life insurance coverage up to age 74 with this plan.
You are covered up until age 80 and the premium costs for this policy will INCREASE as you get older.
If you’re married, you spouse may also purchase this policy. The available coverage amounts go up to $2.5 million. The spouse coverage also ends at age 80 and rates increase as your spouse ages.
AICPA life insurance rates will increase with age.
Level Premium Term & Spouse Level Term Life Insurance
When you buy level term life insurance, you’re buying a policy that will give you coverage for the term period you selected when you bought your policy. If you bought a 10 or 20 year level term, you’ll pay the same monthly (or annual) premium for 10 or 20 years. You’ll pay until the policy ends the term.
What if you want to extend your coverage time? Your rates will be higher when you extend coverage and can go up to age 95. This level premium term plan will be available only to AICPA members and their spouses. Members must be 65 or younger and can purchase coverage for face amounts up to $2.5 million. Your level term policy lasts until your term ends. This policy has fixed rates for the life of the term.
AICPA Level Premium Term Rates
Want to know how much AICPA Level Term will cost you? Check out their rate calculator here.
Group Variable Universal Life
Are you looking for permanent life insurance coverage? AICPA offers their Group Variable Universal Life policy for its members. Their universal life policy provides coverage up to age 100. This is a group policy that offers you a fixed account of at least 4%. It builds cash value which allows you to use your policy for cash withdrawals and loans. Coverage goes up to $2.5 million too. Check out their Universal Life rates by clicking here.
Does AICPA have the best rates?
Will AICPA or the individual market get you the best deal? If you want to make sure you’re getting the best life insurance policy available, here’s what you need to do…
How to shop for the best policy
Most life insurance shoppers fall into 2 very distinct categories:
- The “I will research and do it myself” shopper. -or-
- The “I will use a broker to do all the work for me” shopper.
Here’s a quick tip on shopping and buying life insurance:
- Rates are the same no matter if you buy direct or from a broker.
- There are no hidden “deals” when buying direct from a company. Rates are regulated by each state.
- Use an independent agent or you won’t know which company will provide you the best offer – you won’t know their underwriting criteria or rules.
Use a Life Insurance Broker
It can be a nightmare if you’re not a life insurance broker and you’re shopping for a policy. It’s a pretty crazy process that most people aren’t aware of until they’ve waste a ton of time trying to figure out how to qualify, what options are available and ultimately what it’s going to cost them.
Two people shopping for the same type of policy may get the best price from 2 completely different companies. There are so many underwriting variables that factor in which company to buy from. Your agent will help find the right one based on things such as:
- Your health
- Tobacco use
- Height/Weight
- Family History
- Past and Current Health
- and more
Any one of these factors can change which company will offer your the best or worst rate.
Don’t worry though, Life Insurance Blog can help.
AICPA Life Insurance Reviews
We hope that you have a better understanding of the life insurance options you have with AICPA. Buying life insurance can be pretty overwhelming and complicated when you factor in all the variables that go into getting approved. In short, you’ll probably do much better if you buy a life insurance policy in the individual market and not with AICPA.
This conclusion is based on running a variety of rates and comparing them to different age groups, health class ratings and coverage amounts. We hope you take a little time and compare the rates on our website with AICPA’s. You’ll probably see considerable savings from many of the top life insurance companies available to you.
Final thoughts
Please reach out to us if you have any questions or would like a complimentary consultation. We look forward to helping you.
Thank you for reading our post, AICPA Life Insurance Reviews. Would you like to learn more about life insurance or AICPA?
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