The AICPA life insurance benefits are accessible to members and their families who meet eligibility criteria and maintain good standing.
Multiple plans are available, so it is important to carefully assess the options and choose the most suitable plan for your needs.
Discover more about the AICPA life insurance program and how it compares to individual term coverage that can be purchased in the open marketplace.
quick link navigation
- What is AICPA life insurance?
- What is the AICPA Level Premium Term?
- What are CPA Life and spouse Life?
- How does the AICPA life insurance cash refund work?
- Is AICPA coverage more expensive than term life insurance?
- What is AICPA Group Variable Universal Life?
- Should you replace your AICPA life insurance policy?
- FAQ: AICPA Life Insurance
AICPA Life Insurance
Accountants often start their assessment by examining the advantages and disadvantages of AICPA life insurance, which is currently offered to members of the American Institute of CPAs.
Since 1947, AICPA insurance programs have been accessible to cater to the diverse insurance requirements of accountants and their families.
AICPA Life Insurance provides group life coverage for members through Prudential Life Insurance Company, a company with a strong reputation.
While these plans may be sufficient for some people, you may be wondering if there is a better option out there that could provide more coverage at a lower cost.
To help you decide whether to switch to another plan or stick with the AICPA program, let’s look key features and benefits of the two plans and compare them to those available from other providers on the market.
AICPA Life Insurance Plans
- Level Premium Term Life
- CPA Life and Spouse Life
- Group Variable Universal Life
Level Premium Term
Should accountants consider an AICPA level premium term policy? Only you can determine if it’s the right choice for your needs, but it’s important to assess this coverage to ensure it aligns with your family’s requirements.
To better understand what an AICPA level term life policy offers accountants, let’s explore its features and benefits.
AICPA Level Premium Term plan
- AICPA membership is required to buy AICPA Level Premium Term
- The level premium term allows up to $2.5 million of coverage
- AICPA level premium term locks your rates for either 10 or 20 years
- After the initial term period has ended, the rates will increase annually
- LPT has a maximum issue of 65 to apply for coverage
- Level Premium Term coverage will expire at age 95
- Standard rates for those accountants not wanting to take an exam
- You can qualify for a cheaper preferred rate with good health
- A preferred rating will require full underwriting and an exam
- A premium refund is available with AICPA level premium term
CPA Life and Spouse Life
CPA Life and Spouse Life insurance provides a convenient solution for safeguarding your family’s future.
However, it is crucial to fully comprehend the advantages and disadvantages of CPA Life before making a purchase. This will enable you to determine if this form of coverage is suitable for your needs.
The AICPA CPA Life plan
- AICPA membership is required to buy CPA Life and Spouse Life
- The death benefits vary by your age, from $10,000 – $2,500,000
- Both CPA Life insurance and Spouse Life are age bracketed
- CPA Life insurance rates will increase in cost every five years
- There are rate classifications: preferred, select, and standard
- Most people can be eligible for coverage
- Your spouse is priced separately and can not have 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 years old
- A premium refund is available with CPA Life
AICPA Insurance Trust Refund
Prudential provides life insurance coverage, while AON administers the AICPA Insurance Trust for group members.
The AICPA Insurance Trust always sends out its annual premium refunds in February.
Both group term insurance plans offer accountants an annual cash refund each year in mid-February.
The AICPA offers a refund on premiums paid for life insurance coverage, ranging from 10% to 40%, depending on your age bracket and underwriting class.
As you get older, the premiums increase while the refund available decreases. Prudential has always provided its policyholders with a non-guaranteed cash refund.
However, this refund is not guaranteed and varies based on Prudential’s expenses for paying claims and overhead.
Essentially, Prudential sets aside extra funds by overestimating the cost of coverage in case there are higher claims during the year.
The AICPA life insurance cash refund does not accrue interest or have any policy cash value; it is simply a return of your money.
In essence, the CPA Life insurance plan charges you more than necessary for one year of coverage and then refunds the excess amount.
While this may seem appealing, accountants can assess the actual cost by analyzing the benefits provided by the AICPA insurance plans.
By understanding these policies, you can make an informed decision, ensuring financial security for your loved ones in the coming years.
CPA Life Compared to Term Life
CPA Life Compared to Term LifeThe AICPA life insurance rates are financially advantageous for young adults or those with significant health conditions.
However, as accountants age, the AICPA life insurance rate becomes considerably more expensive compared to prices available in the open market.
If you are in decent health and looking for affordable life insurance over 50, buying individual term coverage outside the AICPA Prudential group coverage is always cheaper.
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Quick Example:
CPA Life Compared to Individual Coverage
Here are the CPA Life insurance rates with the applicable AICPA cash refund vs. the cost of term life insurance rates for ages 55 and older available in the individual marketplace.
The AICPA premiums increase every five years, while term coverage locks in rates for 20 years at a lower cost.
AICPA life insurance rate table
| $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 | $132 | $132 | $132 | $132 |
- Male, $500,00, age 55, non-smoker, preferred plus
- Term 20 is for $500,000 for a 20-year term
- AICPA life insurance refund not applied
- AICPA trust refund 2022, select, 38% age 55-59, 28% age 60-74
- AICPA trust refund 2022, standard, 20% age 55-59, 10% age 60-74
Hold on! Don’t make any AICPA insurance decisions just yet.
Before committing to an AICPA policy, compare rates from several carriers and carefully evaluate each option’s pros and cons.
Luckily, we’re here to help! Our search engine lets you compare our term life insurance plans with AICPA insurance coverage in minutes.
By giving you the flexibility to choose coverage over any period from 10 to 40 years, your life insurance quote allows you to customize a term policy that is right for you.
Smart accountants know that getting the best coverage means locking in premiums at an affordable price, and that’s where we come in.
We offer unbeatable value and free comparisons so you can make sure your policy is working hard for you now and well into the future.
We are not a call center like Big Lou and AIG Direct, and we will not bother you with endless phone calls.
Compare AICPA Life Insurance Quotes
- Select Duration
- Select Amount
- Press Get Quote
Group Variable Universal Life
Group Variable Universal LifeIf you’ve been exploring the AICPA website for life insurance options, you might have encountered a type of policy called Group Variable Universal Life (GVUL).
While these policies can offer certain benefits to specific individuals, they often come with substantial fees and may not always be the most suitable choice.
We will delve into what GVUL policies entail and help determine if they align with your needs.
AICPA Group variable universal life
- Maximum of $2,500,000 of coverage
- Coverage to age 100
- Premium increases are on an 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 the AICPA group variable universal life has age-bracketed premiums and a cash value component within the policy.
The cash values within Prudential Group universal life insurance can be invested in various funds.
These separate accounts will require a basic understanding of these investments and reading the prospectus on the AICPA insurance website.
However, the AICPA group variable universal life acts much like a five-year term policy coupled with a forced savings element.
Accountants looking to buy permanent coverage should consider either IUL or whole-life insurance coverage.
Both universal and whole life insurance offer premiums that can be guaranteed for a lifetime and cash value accumulation.
Replacing AICPA Life Insurance
Replacing AICPA Life Insurance The convenience of purchasing coverage might explain why many accountants opt for expensive term insurance through one of the AICPA programs.
Some individuals may perceive the application process as complex or believe they must be incredibly healthy to qualify for insurance coverage.
However, our agency can approve coverage for many individuals with different medical conditions within a few weeks.
Wow, this sounds intriguing!
Should I replace my AICPA life insurance policy?
Are you considering replacing your existing AICPA life insurance policy? There are a few things to consider when making this important decision.
Before making any decisions, it’s crucial to determine if you meet the requirements for individual term life coverage as an alternative to your current AICPA policy.
Certain insurance companies may require a brief medical examination, while others offer no-exam life insurance options.
Depending on your age and desired coverage amount, the insurer may request medical information from your doctor (APS).
We can quickly send your medical records to multiple insurance companies to find you the most competitive life insurance rates available in the United States.
In just a few weeks, we will compare AICPA life insurance with policies purchased directly from individual insurers.
We are confident that purchasing an individual policy will save you money compared to getting coverage through AICPA life insurance.
Unlike salespeople or call center agents at Select Quote, Term Finder, and Accuquote, we do not use high-pressure tactics.
Here is a brief list of reputable companies that offer affordable life insurance and have received top ratings from the Better Business Bureau, AM Best, and J.D. Power
| COMPANY | BBB | AM Best | JD Power |
|---|---|---|---|
| AIG | A+ | A | 718 |
| AXA Equitable | A+ | A+ | 752 |
| Banner Life | A+ | A+ | N/A |
| Brighthouse | A+ | A+ | N/A |
| Guardian Life | A+ | A++ | 760 |
| John Hancock | A+ | A+ | 739 |
| Lincoln Financial | A+ | A+ | 744 |
| Mass Mutual | A+ | A++ | 780 |
| Metlife | B- | A+ | 780 |
| Mutual of Omaha | A+ | A+ | 766 |
| Nationwide | A+ | A+ | 806 |
| Pacific Life | A+ | A+ | N/A |
| Principal Financial | A+ | A+ | 774 |
| Protective | A+ | A+ | 742 |
| Prudential | A | A+ | 770 |
| SBLI | A+ | A+ | N/A |
| Transamerica | A+ | A+ | 720 |
FAQ: AICPA Life Insurance
FAQ: AICPA Life InsuranceWhat insurance company provides AICPA life insurance? Prudential underwrites AICPA Life Insurance. Prudential is a reputable company with strong financial stability in the market.
How much does AICPA membership cost? Membership fees are $340 per year and must be renewed annually. Different types of memberships are also available based on your status, such as affiliate and retired memberships.
Does AICPA offer whole life or universal insurance? AICPA does not provide whole or universal life insurance options to its members. If you are looking for these policies, you must find a different life insurance company.
What is the age limit for AICPA life insurance? The age limit for AICPA life insurance is 80 years old. However, coverage may end earlier if you no longer remain a member of the American Institute of Certified Public Accountants.
Related AICPA Life Insurance Programs
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Eric Van Haaften, LUTCF
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