The items below identify some of the pros and cons of the AICPA life insurance plan when compared to ordinary level term life coverage.
The AICPA Life Insurance Plan:
- The AICPA insurance program offers members an easy way to get term life insurance. In most cases there are no medical exams and if you are in great health, a preferred health (lower) rate is offered.
- The AICPA term plan is a 5-year step rate plan with the cost increasing incrementally every five years. I.E. 30-34, 35-39, 40-44, 45-49, etc.
- Actual rates are subject to increase in any plan year.
- For a small additional cost, the AICPA plan offers riders for Accidental Death and Dismemberment, Waiver of Premium for Disability and Dependent Child Coverage. An Accelerated Benefit Rider is also offered at no additional cost.
- The AICPA plan puts a limitation on coverage depending on you membership level and age.
- Coverage is overpriced for everyone beyond age 45, especially if the coverage will be needed beyond 5 years.
Level Term life Insurance:
- In nearly every case, in order to obtain term life insurance, you must prove your health by passing a routine physical exam and lab work. The insurance company will evaluate your medical history as well as the results of your exam to determine your actual rate for life insurance.
- Term life insurance can be purchased in various level periods including: Annual Renewable Term, 5-year level term, 10-year level term, 15-year level term, 20-year level term, 30-year level term and even level term insurance to age 100.
- Rates are guaranteed to remain fixed during the entire level term period. Obviously, after the initial level period, rates will increase significantly.
- Most term life insurance companies offer various riders such as Waiver of Disability (Premium) and Accidental Death. Dependent child riders are not available with some level term plans. As with the AICPA Life Insurance plan, most term providers offer an Accelerated Benefit Rider at no additional cost.
- While most life companies do have a maximum limit on coverage, it is not an arbitrary fixed limit but rather a multiple of income and or net worth that in many cases will far exceed the AICPA plan limits. See the article, financially underwriting term life insurance.
- Cheap term life insurance, at preferred rates, will be dramatically lower than AICPA coverage costs and offer longer guaranteed level periods.
The items above highlight just a few of the major points in which you’ll need to consider when comparing level term life insurance versus association group life insurance coverage offered to CPAs through the AICPA life insurance program. For a custom quote click here or for questions or concerns, you can call MEG Financial today at 877-583-3955, or you can submit this short form.