Life insurance is a key portion to any complete and comprehensive personal financial statement. While many individuals who work as CPAs may already have life insurance protection via an employee benefit plan, this coverage may not always be enough. By being a member of the American Institute of CPAs, or AICPA, individuals – as well as their spouses – can be eligible to purchase additional life insurance coverage, often at a reduced monthly premium life insurance rate.
Life Insurance Coverage Offered via the AICPA
There are several different life insurance options that are available for members of the AICPA. Because of that, an individual (and their spouse, if applicable) may be better able to custom tailor the coverage to their specific needs. In addition, because the plans that are available through the AICPA provide a wide range of coverage, as well as various optional riders.
The life insurance coverage options that are available through the AICPA include the following:
CPA Life & Spouse Life
The CPA (Certified Public Accountant) Life and Spouse Life Insurance coverage is offered via The Prudential Life Insurance Company. These plans are available to AICPA members, as well as a State Society of CPAs or other qualifying organizations, as well as to the members’ spouses.
This plan can work as a good supplement to what may already be provided by an individual’s employer, and / or as a supplement to other life insurance coverage that may have been obtained via the AICPA.
This option offers a level term life insurance policy, with a multiple coverage amount of up to $2.5 million. Even if a member of the AICPA changes jobs, as long as he or she is still an AICPA member (or the spouse of a member), coverage can be obtained.
Just as with other types of life insurance proceeds, the benefits that are paid out to a beneficiary of these plans are received free of income tax. This means that 100 percent of the stated death benefit from the plan may be used for paying off debt, paying final expenses, or for any other purpose that a beneficiary requires.
There are also some additional features that come with the CPA Life & Spouse Life plan. For example, this plan offers a yearly cash refund, which can help with making the life insurance coverage very competitively priced. And, although these refunds are not guaranteed, the participants in this particular plan have been receiving refunds ever since the plan was initially offered.
An insured who is covered by the CPA Life Plan may also opt to add an optional dependent child coverage rider for only $6 per year. This means that all of an individual’s dependent children can be covered with $10,000 of term life insurance. The coverage for this plan can begin as soon as a child’s birth, and there is no evidence of insurability that is required.
Dependent children will remain covered as long as they are not married and are under the age of 25. However, if a child is incapacitated, he or she may retain the insurance coverage, even past age 25. Step children and legally adopted children who depend on the insured member for support may also be covered with this insurance.
Other riders that may also be added to the CPA Life plan include the following:
- Accelerated Death Benefit Option Feature for Terminal Illness – The accelerated death benefit option can be added for no additional charge. With this benefit, if the insured becomes terminally ill while he or she is covered with this life insurance plan, they will be able to obtain a portion of their life insurance benefit in one lump sum. (In doing so, their death benefit will be reduced by this same amount). This option allows the insured to receive either 75 percent of their life insurance benefit or $1 million – whichever is less.
- Optional Accidental Death and Dismemberment (AD&D) Coverage – The AD&D coverage will allow the ability to double the insured’s life insurance benefit if they die by accident, suffer the loss of one hand and one foot, one hand and sight in one eye, or one foot and sight in one eye, and / or suffer the loss of both hands, both feet, and sight in both eyes. Proceeds for the loss of life are paid to the life insurance policy’s beneficiary. Proceeds for the dismemberment are paid to the insured.
- Optional Disability Waiver – If an insured becomes totally disabled, he or she may continue this life insurance plan with no additional contributions. It is important to note that the optional disability waiver is not available under the spouse life insurance plan.
In addition, this life insurance is portable. Therefore, even if an insured changes jobs or retires, the life insurance will remain in force, provided that the insured is still a member of the AICPA organization.
Level Premium Term & Spouse Level Premium Term
The level premium term life insurance plan also offers multiple coverage amounts of up to $2.5 million. With this plan, insureds may choose either a 10 or a 20-year level period. The time period that is available will be dependent on the individual’s (and their spouse’s) age at the time of application. After the 10 or 20 year, time period has elapsed, the insurance may remain in force, but it will have annually increasing rates to age 95. This particular life insurance plan is only available to AICPA members up to age 65. This life insurance plan is also offered through The Prudential Insurance Company of America.
Group Variable Universal Life
The group variable universal life insurance coverage will also allow multiple coverage up to $2.5 million. This coverage will last until the insured’s age 100. Because it is considered to be permanent life insurance, these plans also have the ability to build up tax-deferred cash value.
Because the cash value can grow tax-deferred, there are no taxes due each year as the account accumulates – unless or until the insured decides to withdraw it. This plan also has tax-deferred investment options, including a fixed account that is guaranteed not to go below 4 percent. With this insurance option, the premium rates will start out low, and then increase as the insured ages.
How to Obtain the Best Premium Quotes on Life Insurance Coverage
Oftentimes, it can be helpful to compare life insurance premiums before the purchase of a plan. Even as a member of a company or a group, the reduced premium rate may not always be the lowest cost option.
We work with many top life insurance carriers in the marketplace, and we can help you with obtaining this information. We can do so for you quickly and conveniently, all from your home computer. In order to proceed, just simply fill out the form on this page.
We are also available to answer any questions that you may have. Please feel free to contact us via phone at 864-332-4209. We understand that when buying life insurance, it is important to ensure that all of your potential needs are met. Before you purchase life insurance coverage, be sure that you are getting the best option for you, your loved ones, and for your premium. So, contact us today – we’re here to help.