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.
The American Institute of Certified Public Accountants (AICPA) was founded in 1887 and has close to 500,000 members.
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:
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.
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:
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
$1,000,000 – 20 year term preferred rate – 40-year-old female
Group life insurance policies don’t compete with an individual policy on price, benefits, conversion, or control of the policy.
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:
A paramedical exam may be required, especially if you apply for the preferred rates.
It doesn’t even come close to what is available in the individual term life insurance market.
CPA Level Term
Individual Term 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:
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.
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
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:
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:
The “Preferred” rate always requires a paramedical exam, while the “Standard” and “Select” rate classes are eligible for accelerated underwriting and no exam.
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.
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.
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.
We take our responsibility seriously and will do whatever we can to make sure you end up with the best life insurance company based on your unique life insurance needs and situation.