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Accounts have a unique opportunity for life insurance that you should be aware of. As an accountant, you can be a part of the American Institute of CPAs (also known as the AICPA). One of the perks of this group is that you can purchase life insurance through them.
Life insurance is one of the best protections that you can buy for your family, but you want to get the most affordable option. You don’t want to have to pay more for coverage than you have to. If you’re looking to purchase life insurance, you want to be sure that you get a quality insurance plan from a stable company.
One of the most common questions surrounding life insurance for accounts is, “are the AICPA insurance policies the best option?” and that’s a great question that we are going to help answer for you.
The AICPA was established in 1887 and has over 400,000 members in over 140 different countries. By being a member of the group, you’ll be able to get discounts at dozens of different travel companies, hotels, professional education, and the most important, access to several different insurance products.
The program offers over a dozen different insurance plans, everything from Medicare Supplemental plans to professional liability insurance, but the one you’re concerned with is the life insurance plans that they offer. The AICPA has three different life insurance policy types that you can choose from, but how do these plans compare to other plans on the market?
The different options for personal insurance through AICPA are a term life insurance and spouse life insurance, a group variable universal life, and a level premiums term life insurance plan. Each policy has different advantages and disadvantages that you’ll have to consider if you want to purchase coverage through the association.
Because you’re a part of a specialized club, most accounts assume that the insurance coverage is going to be cheaper than other plans, but in some cases, this isn’t true. The AICPA group is one of those cases. In most cases, the plans that you purchase through the AICPA are going to be less affordable than if you bought a plan through another company without going through the association. In most cases, the premiums from the group are considerably higher. For example, for a 45-year-old male, non-smoker, your policies could be around $40 higher.
Another thing you should take note of is that you have to be a member of the AICPA to keep your insurance coverage. If you decide you no longer want to be a member of the association, you’ll have to find a new policy. Depending on your age, you could have trouble finding a new plan.
There are millions of people that think that life insurance policies are a waste of money. You continue to pay for coverage that you hope to never use, and a lot of people never see the benefits of their plan. So, why would anyone want to waste their money when they don’t see a return on investment?
Nobody wants to think about his or her own death, but it’s something that you need to do. Imagine if you were to pass away tomorrow. Your family members would be left with all of your debt and final expense. That would be responsible for paying for funeral expenses, student loans, mortgage payments, hospital bills, and so much more. Would your family have all of the resources they needed to pay off those bills? This is where a life insurance policy comes in. It can give your family the money they need to pay off your debts but not sacrifice their standard of living or leave them with a mountain of debt.
Aside from finding the perfect company to purchase your insurance plan through, the next step is deciding how much coverage your family needs. Not having enough insurance is just as bad as not having coverage at all. In fact, a vast majority of Americans that do have a life insurance policy are drastically underinsured, which can leave their families scrambling to pay for basic expenses.
There are several different factors that you need to account for when looking at your life insurance needs. As we mentioned, the first is your debt and any expected final expenses. The more debt that you hold, the more life insurance you’re going to need. You need to ensure that your coverage is sufficient enough to pay off all of your debts. Add up your mortgage, car payments, credit card bills, and anything else your family would have to pay off if you passed away.
You should also include any foreseeable future costs that your family is going to encounter. Things like college tuition fees, weddings funds, and other related costs. If you aren’t there in the future, your family is going to have a difficult time, but finances shouldn’t contribute to that.
We’ve explained that AICPA probably isn’t the best option for getting affordable life insurance, but there are some ways that you can get the cheapest insurance possible. If you want to keep more money in your pocket, there are a couple of techniques that you can use to get the best insurance rates.
When you apply for life insurance, the insurance company is going to look at several different attributes to calculate how much of a risk you are to insure. There are going to look at your gender, age, family history, overall health, tobacco usage, your job and your hobbies. There are quite a few factors that you have no control over, like your age or family history, but there are some attributes that you can improve and save money.
The first and easiest thing to change is your tobacco usage. If you smoke or use chewing tobacco, you’ll be looking at a much more expensive insurance policy. In fact, smokers can expect to pay twice as much for their plan as a non-smoker. If you want to save money on your insurance policy, you’ll want to kick that smoking habit once and for all. Are those cigarettes worth an additional thousand dollars every year?
Another way to get lower insurance premiums is by improving your health. The insurance company is going to want a general picture of your health. The better health that you’re in, the less risk you are to insure. They will measure your health by using a medical exam from a paramedic. They are going to get your basic vitals, like blood pressure, heart rate, weight, and they will also take a blood sample and a urine sample.
Most insurance applicants are in the best of shape, which puts them in a lower rating class that then translates into higher premiums. Starting a healthy diet and getting regular exercise can work wonders on your waistline and your insurance policy.
The type of policy that you choose is also going to play a huge factor in how much that you pay for coverage. There are two main categories of life insurance plans, term, and permanent coverage. There are several differences between the plans that can have drastic effects on your coverage and premiums. Term policies are only effective for a certain amount of time, or “term.” They are generally bought in 10, 20, or 30-year terms. When you purchase the plan, you’ll get a premium amount that you will pay for the whole duration of the policy. It will never increase or decrease. After that, the policy is no longer valid, and you’ll have to buy another policy.
The other type of policy is a permanent coverage plan. There are several different types of policies, like a whole life or variable plan. Each of them varies in their advantages, but they all share permanent coverage, which means that as long as you continue to make the premium payments, you’ll have life insurance. This is a nice incentive for a lot of people that don’t want to worry about reapply for coverage in the future. Because these policies provide permanent coverage, they are going to be more expensive than term plans. If you want to get the most affordable coverage, a term insurance policy is going to be the best option.
The best way to ensure that you’re getting the lowest rates available to you is to work with an independent insurance agent. Unlike traditional agents, independent agents represent dozens of different insurance companies and can bring all of the lowest quotes directly to you. Our independent agents understand the life insurance process and are experienced working with all of the companies in the insurance marketplace, so they know which companies are going to look at your application favorably.
Aside from saving you money, working with an independent agent is going to save you time. You could spend weeks calling various insurance companies and getting quotes from them, but we understand that your time is valuable. Don’t’ waste it calling companies or researching them on the Internet. Let us do all of the work for you and bring all of the best rates directly to you.
Life insurance is one of the most important purchases that you will ever make for you and your loved ones. It’s vital that you make the best decisions when making that purchase. If you’re a part of the AICPA, you’ve probably thought that their policies were the best option available, but you could be spending too much for your coverage.
Because you can’t predict the future, you don’t’ know what’s going to happen tomorrow. Every year countless people wait too long to buy a life insurance policy. Their family is devastated at the loss, and they find themselves with thousands of dollars in expenses that they don’t have the money for.
If you have any questions about life insurance for accountants or any of the various types of life insurance, please contact us today. We would be happy to answer those questions and get you the insurance coverage that you and your family deserve.