If you are a chartered accountant, you have probably considered joining the American Institute of CPAs, otherwise known as AICPA. One added benefit you may not have considered at first glance is the fact that members of the AICPA can actually buy life insurance through the organization. Sounds, great—and it is for many, but is it going to be great for you? This article is designed to help you figure out whether buying a life insurance policy from AICPA makes sense for you.
What is AICPA?
More than 480,000 members strong, AICPA is a worldwide organization for chartered accountants. They offer one-stop shopping for their members’ insurance needs.
One of the greatest benefits of AICPA insurance is that they offer many options for businesses and individuals. Individuals can choose to buy almost any kind of insurance through AICPA, including but not limited to: long-term disability, long-term care, auto, homeowners, catastrophe medical, and of course, our favorite, life insurance.
AICPA life insurance policies
AICPA has 3 life insurance products that they offer CPA Life and Spouse, Level Premium Term & Spouse Level Premium Term, and Group Variable Universal life. They also have a few rider options available on some of their policies.
AICPA CPA Life and Spouse Life Plans
This is a life insurance plan issued by Prudential (Prudential Insurance Company of America). This is a plan offered to not only members of AICPA but also State Society members or other eligible organizations. You are able to get coverage of up to $2.5M.
Coverage lasts until 80 years old, even if you leave or retire as long as you retain membership. You also have the ability to apply for additional coverage at any time.
AICPA Level Premium Term & Spouse Level Premium Term
Level term life insurance provides coverage for the period of time you choose. It allows you to lock in a certain monthly cost that you will pay from now until your policy ends. The period of coverage can be for 10 or 20 years, but not that ages 56-65 are only eligible for 10 year term. This plan is only available to AICPA members and their spouses 65 and under. Coverage amounts are available up to $2.5 million. The policy lasts until the term ends. AICPA life insurance rates remain fixed for the term length.
AICPA Group Variable Universal Life
A variable universal life policy can provide you with life insurance protection and accmulate a cash value. If you are a member and interested in a group variable univeral life policy speak directly with AICPA for details.
AICPA life insurance riders
As mentioned previously they have a few rider options such as depdent child coverage, accelerated death benefit rider, accidental death & dismemberment (AD&D), convenience coverage, and a disability waiver option.
Dependent child coverage
This rider is only available on some plans, but you are able to insurance all your eligible children with $10K in coverage. They are covered until he/she is unmarried and under the age of 25.
Accelerated death benefit
This rider is in place if you become terminally ill while covered. It allows you to take a portion of the death benefit if you are diagnosed. There is no additional cost for this rider.
Accidental death & dismemberment (AD&D)
This rider allows you to collect additional benefits if you die by an accident, suffer the loss of both hands, both feet, or sight in both eyes. Or if you suffer the loss of one hand and one foot, one hand and sight in one eye or one foot and sight in one eye. Note that this are the specific requirements for AICPA and the specific requirements to collect on AD&D can vary by company.
This allows you to keep your coverage if you change jobs or retire, as long as you maintain your membership at AICPA or another qualifying organization.
This is available on some policies and can allow you to continue coverage and not pay your premiums if you become totally disabled before the age of 60.
Bottomline: AICPA is a great choice for chartered accountants
It makes sense to buy a life insurance policy through a group you know and trust; if you are a chartered accountant, then that group is probably AICPA. There’s no doubt that they offer some pretty top notch life insurance options, and their spousal coverage is a major winning point. Many AICPA members think that buying insurance via the organization is one of its best functions. The sheer infrastructure of AICPA makes purchasing life insurance really smooth.
It’s also quite handy that they offer a lot of different insurance options—some people prefer to buy multiple types of insurance (i.e. car, house, life) from the same company. It can help you stay organized and cut down on things to remember.
If you’re not already a member of AICPA, then you’ll first have to join the organization to reap the benefits of getting life insurance.
Other than that, there aren’t all that many cons of AICPA life insurance. The only major drawbacks of using AICPA to purchase a policy is that you are going to be choosing this over all the other options out there—some of which may actually give you better coverage. Further, AICPA is limited in the different types of life insurance policies offered.
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