Life Insurance For Accountants and CPA’s

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As financial professionals, certified public accountants realize and understand the importance of owning life insurance to protect their families and businesses. Most accountants carry large amounts of life insurance and especially term life insurance. Many take advantage of coverage offered through associations such as the American Institute of Certified Public Accountants, the AICPA.

While the AICPA plan is convenient and has advantages, it’s not always as affordable as other options and has a few other drawbacks. The following information will provide a general overview of the AICPA life insurance program.

AICPA Term Life Insurance Overview

The AICPA group life insurance program is underwritten by the Prudential Insurance Company of America in Newark, New Jersey. The AICPA plan is available to all association members as well as members of other qualified organizations, such as the State Society of Certified Public Accountants. In order to secure coverage through the AICPA plan, you must reside in the U.S., Puerto Rico, the Virgin Islands, or Guam.

AICPA Term Life Insurance Policy Limits

The AICPA offers term life insurance protection up to $2,000,000 if you are under age 55 and are a member of both the AICPA and the State Society of CPAs. If you are not a member of your State Society, you are only eligible for $1,500,000 of coverage up to age 55.
Upon reaching age 55, coverage limits begin to decrease. At 55, the maximum coverage will be $1,500,000 from ages 55 to 64 and $1,000,000 from 65 to 69 and $500,000 from age 70 to 74. At age 75, your insurance amount will be reduced to 25% of existing coverage or $250,000 whichever is less. All AICPA coverage terminates at age 80.

Term Life Insurance Costs with the CPA Association Plan

The CPA term life insurance plan offered by the AICPA has two different rate classes for determining policy cost: the select class and the standard class. With either class the rates increase every five years beginning at age 30.

The select class rate class or preferred health class is available for eligible participants between the ages of 45 and 79. In order to qualify, you must prove your health by disclosing and making available your past medical history and information. The savings at the select class rates can be as much as 40% depending on your age.

In order to continue to qualify for select rates, you must submit evidence of your good health every five years to continue to receive the select class rate. If satisfactory proof is not submitted or you are unable to prove your continued good health, your policy cost will be based on the standard rate. Select rates for the current AICPA plan can be found at the AICPA website.

Standard rates require minimal proof of health. The answers to simple medical questions will determine whether or not you can qualify. The insurance costs for the standard health class are anywhere from 25% to 40% higher than select rates.

Regardless of the select or standard health class, life insurance costs under the CPA life insurance plan increase every five years beginning at age 30. Cost increases are based upon a schedule that can be found on the AICPA life insurance website.
Actual cost may be changed by the Prudential Life Insurance Company of America each plan year. However, if rates are increased, they must be increased for the entire age and class and not for a specific individual or group.

AICPA Life Insurance and Premium Refunds

The AICPA insurance plan offers a non-guaranteed cash reimbursement feature. All premiums received from AICPA life insurance plan participants and their spouses go directly to Prudential Life Insurance Company of America. Out of the total premium pool, death claims are paid and expenses and fees are deducted. At the end of each plan year, cash refunds or return of excess premiums may be paid by Prudential Life to the AICPA trust account. The trust account then reallocates refunds back to AIPCA plan participants. While this premium refund option is not guaranteed, premium reimbursements have been paid from this AICPA trust account to plan participants since 1957. For more information on how the refunds are paid, see the schedule for AIPCA insurance trust refunds.

Other AICPA Insurance Plan Options

Life Insurance policy riders are available under the AICPA plan and include accidental death and dismemberment and waiver of contributions, also known as disability waiver of premium.

Additionally, the AICPA plan offers an accelerated benefit option at no cost. The benefit allows current policyholders that have been diagnosed with a terminal illness the opportunity to receive a portion of the insurance amount (currently 75% of the death benefit up to $1,000,000) prior to death. Any proceeds received are then deducted with interest once the claim is settled.

Finally, the CPA term life insurance plan under the AICPA plan also provides for conversion privileges that allow a covered member to exchange the term life coverage for a permanent life insurance policy offered by Prudential without proof of health. While the cost to convert is usually expensive, this is a very valuable policy feature that protects insurability.
In addition to term life insurance, the AICPA insurance plan also offers spousal term life and member and spousal group variable universal life. For more information on these plans, see the AICPA website.


The AICPA life insurance plan, underwritten by Prudential Insurance Company, offers solid term life insurance coverage to its members and their spouses. However, while the plan is good, in many cases it is not always competitively priced and has some major limitations. For a custom price comparison, get a quote here or call MEG Financial today at (877) 583-3955. You can also get more information about the AICPA life insurance plan by visiting the links below.

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