AICPA Life Insurance

As an accountant, I’m sure you’re aware of the AICPA life insurance programs that are offered.

But how do you know if those products are any good?

This guide will help you compare AICPA life products to the individual marketplace.

What Is AICPA Life Insurance?

The American Institute of Certified Public Accountants (AICPA) was founded in 1887 and has close to 500,000 members.

The AICPA Member Programs offer group life products issued by Prudential in partnership with AON.

CPA Level Premium Term Life

CPA Life

Like most group life insurance policies, you (or a spouse) must be a member to get AICPA life insurance.

A third product, Group Variable Universal Life has been discontinued.

And while the AICPA website says this:

“AICPA Member Insurance Programs is a trusted advocate for CPAs, providing exclusive access to superior risk solutions that safeguard their livelihoods and protect their lifestyles.”

AICPA Member Insurance Programs

Our goal here is to tell you about AICPA products and how they compare to individual life products.

We think you should trust but verify their claim of “superior” regarding life insurance.

CPA Level Premium Term Life

The CPA Level Premium Term Life product offers you a choice of a 10-year or 20-year level premium group life product.

CPA Level Premium Term Life and Spouse Level Premium Term Life Highlights:

• Ages 18-65 for 10 years, 18-55 for a 20-year term
• Coverage amounts to $2,500,000 (the maximum available depends on age)
  • Under age 55 = $2.5 million
  • Age 55-64 = $2 million
  • Age 65-69 = $1.5 million
  • Age 70 or older = $750,000
• Level term lengths of 10 or 20 years
• Three rate classes
  • Preferred rates – exam is required
  • Select rates
  • Standard rates
• Optional AD&D Coverage
• Accelerated Benefit Option
• Optional Dependent Child Coverage
• Coverage requires continued membership

CPA Level Premium Term Life Rates

Here’s a link to the AICPA Level Premium Term Life Insurance Rate Table as of 6-18-2022.

AICPA Level Premium Term comparisons to the individual term life insurance market:

$500,000 – 10 year term preferred rate – 40-year-old male

• AICPA – $324 (If you factor in the non-guaranteed annual cash refund, rate is $292)
• Lincoln National – $252 at the preferred rate, $210 at the best rate class.

$1,000,000 – 20 year term preferred rate – 40-year-old female

• AICPA – $720 (If you factor in the non-guaranteed annual cash refund, rate is $648)
• Banner Life – $614 at the preferred rate, $511 at the best rate class.

Group life insurance policies don’t compete with an individual policy on price, benefits, conversion, or control of the policy.

CPA Level Premium Term Life Underwriting

For the CPA Level Premium Term Life product, Standard, Select, and Preferred underwriting rate classes are available.

You’ll be asked an initial set of five eligibility questions no matter what rate class you apply for:

1. Has your mother or father died prior to age 60 as a result of heart disease, stroke or cancer (does not include stepparent(s) or adoptive parents)?
2. In the last three years, has your driver’s license been revoked or suspended for, or have you been convicted of driving under the influence of alcohol or drugs?
3. Within the last 12 months have you used tobacco or nicotine in any form?
4. Have you, in the last three years, flown in an aircraft, glider or balloon in which you operated or had duties aboard, or do you anticipate flying in an aircraft, glider or balloon in which you will have duties aboard? Or, are you participating in ultra light flying, ballooning, parachuting, mountaineering, rodeo riding, any type of motorized racing, hang gliding, parasailing or bungee jumping?
5. In the past five years have you received treatment, counseling or participated in a rehabilitation program for drug or alcohol abuse?

A paramedical exam may be required, especially if you apply for the preferred rates.

How Does CPA Level Premium Term Life Compare?

It doesn’t even come close to what is available in the individual term life insurance market.

For example:

CPA Life

The CPA Life plan and the identical Spouse Life plan are the most popular group life policies purchased by members, with approximately 124,000 members insured with these plans.

CPA Life Highlights:

• Available for ages 18-74
• Coverage can last up to age 80
• Coverage amounts to $2.5 million, depending on your age.
• Rates increase in 5-year age bands starting at age 30
• Three underwriting rate classes:
  • Standard rates for ages 18 up to age 45
  • Select rates for ages 45-74
  • Preferred rates for ages 50-74
• Select and Preferred rates require evidence of good health every 20 years.
• Accelerated Death Benefit Option for Terminal Illnesses – Included
• Accidental Death and Dismemberment (AD&D) Coverage – Optional
• Disability Waiver – Optional
• Dependent Child Coverage – Optional

CPA Life Rates

You will also find the CPA Life Insurance Rate Table – Monthly Gross Costs and Annual Refund Information here:

Rates increase in 5-year age bands starting at age 30.

To help manage your cost, you may apply for reduced Select rates at age 45 and even lower Preferred rates at age 50.

CPA Life Underwriting

The CPA Life product offers “CPA Life Express” underwriting. If you meet the criteria it’s possible to obtain coverage in minutes!

CPA Life Express Underwriting Criteria

• Ages 18-39
• Up to $1,000,000
• No medical exam required
• Must be actively at work at least 17.5 hours per week.

After answering some basic questions, underwriting will check the Medical Information Bureau and issue its decision to you.

If you don’t meet the express underwriting criteria, here’s how it works for everyone else.

CPA Life Underwriting

Insureds aged 18-74 may apply for up to $2,500,000 of coverage.

The maximum coverage amount available is based on your age:

• $2,500,000 – Ages 18-54
• $2,000,000 – Ages 55-64
• $1,500,000 – Ages 65-69
• $750,000 – Ages 70-74

A member’s Life Insurance reduces at age 75 to 50% of the previous amount or $500,000, whichever is less.

The CPA Life plan offers three underwriting rate classes:

• Standard – available to insureds under age 45.
• Select – available to insureds age 45-74.
• Preferred – available to insureds age 50-74.

The “Preferred” rate always requires a paramedical exam, while the “Standard” and “Select” rate classes are eligible for accelerated underwriting and no exam.

Annual Cash Refund

One of the unique features offered by the CPA Life and CPA Level Premium Term Life products is the Annual Cash Refund.

The money that is not used by the group life insurance plan for expenses, claims, and other charges are refunded by Prudential back to the participants through the AICPA Insurance Trust.

The amount you may receive is based on your age, payment basis, rate class, and type of product purchased.

While the Annual Cash Refund is not guaranteed and may vary from year to year, a refund has been issued every year of the Plan.

Should You Get AICPA Life Insurance?

First off, the most important thing for you to do if you need life insurance is to get a life insurance policy.

It’s simple enough, but many people overlook getting enough coverage.

While the CPA Level Premium Term Life policies seem expensive compared to products available in the individual market, the CPA Life policy can be inexpensive, especially at some younger ages.

The best advice we can give you is to get a comparison of the AICPA life insurance products to what we have to offer.

Conclusion

Life insurance is important to have in order to protect your family, business, or estate.

You won’t know which life insurance policy will be best until you obtain quotes using your unique circumstances.

There is never any pressure or obligation with our service. We’ll give you the information you need to make an informed decision about your life insurance.

Please take a few minutes to submit your quote request. Thank you.