Most CPAs blindly assume that the American Institute of CPAs (AICPA) has their best interests at heart. Members trust that the life insurance coverage provided by the association is the best offer available in the marketplace. In reality, the plan offered through the AICPA is a group plan provided by Prudential, and is significantly more expensive than open market pricing.
Purchasing life insurance for anyone, whether you are an accountant, a realtor seeking life insurance or just an individual looking to protect your loved ones, it can be a hard decision to make on which company to choose and which policy. We are here to help you make the best decision for your needs.
Life insurance is one of the most important purchase that you’ll ever make for the unknown future of your family. You never know what’s going to happen. You don’t want to think about anything tragic happening to you. Life insurance is the best way to ensure that your family members will have the money that they need, even if something tragic were to happen to you.
When you’re shopping for life insurance, there are several key factors that you’ll need to consider to buy the best plan to protect your loved ones. One of those decisions is where to get your coverage from.
Group Coverage and the AICPA
Basic economics touts the power of bulk purchasing. The AICPA provides a large volume of customers for Prudential, and so it seems reasonable to assume that a discount might be offered to members. Unfortunately, this is not the case, and individual policies are often more affordable than the group policy coverage provided by AICPA.
Examine Individual Coverage Options
If you are over the age of 50 looking for life insurance and are in good health, you can qualify for a more affordable term life insurance policy by purchasing an individual policy, though if you are not in the best health and you feel that you need to look into a no medical exam life insurance policy, we can help you with that! A level term individual term policy will ensure that your rate does not increase annually. Contrast this with regular rate increases on the group policy offered by the AICPA and the choice is clear. If you participate in Prudential’s group policy, you can look forward to a rate increase every five years. Avoid the increase with your own level term individual policy.
Everyone likes cash back, but your life insurance policy should not be viewed as a savings vehicle. Life insurance is to take care of your family in the event of your untimely debt. This policy should be in place as a supplement to investment vehicles, not instead of. Selecting the AICPA life insurance policy simply because of the possibility of receiving a small annual refund is unwise, don’t do it.
Before purchasing your own individual life insurance policy, perform a cost benefit analysis. Be certain to include the refund and rate increases in the AICPA policy over the course of term of your individual policy. This will allow an apples to apples comparison. Numbers don’t lie, and it should become immediately clear that other companies like Colonial Penn or Banner Life offer a much better selection when it comes to level term life insurance than the group Prudential policy can provide.
Examine the Numbers
For example, a 55 year old male with a $500,000 policy for 15 years will pay $35,940 according to the most recent AICPA rate guide. The premium is $5,580 at age 55, $10,860 at age 60, and a staggering $19,500 per year from age 65 to 70. These premiums take into account the 33% annual refund, which was the last refund offered. Compare this to a 15 year individual life level term insurance policy. The same 55 year old male would expect to pay anywhere from $16,500 to $33,000 depending on your health. That’s a potential savings of almost $18,000.
Lowering your Life Insurance Rates
When you look at the quote above, you might be worried about how much you’re going to pay for your life insurance coverage. Don’t worry, there are several ways that you can lower your insurance premiums and keep more money in your pockets.
When you’re shopping for life insurance, it’s important that you find a company that’s going to view your health more favorably. If you’re overweight, then you should find a company that offers lower premiums to overweight applicants.
Another way to save money is to improve your health before you apply. Before you apply for life insurance, the company is going to require that you take a medical exam (unless you buy a group plan or a no exam policy), and the results of that exam are going to play a huge role in how much you pay every month. If you want to save money, start getting exercise and stick to a healthy diet. Both of these can help you lose weight, lower your blood pressure, and lower your cholesterol. All of these are going to translate into cheaper life insurance.
The best way to lower your rates is to cut out any tobacco that you currently use. Quitting tobacco will drastically improve your health and save you thousands of dollars every year on your insurance.
Getting Affordable Life Insurance with an Independent Agent
There are over 800 insurance companies on the market. All of them offer different products and have different rates. As you can see from the numbers above, AICPA probably isn’t going to be the best option for you, but don’t worry, there are still plenty of other choices. Because every company is different, and all of them have different rates, based on their medical underwriting. If you want to ensure that you’re getting the most affordable life insurance, you’ll need to compare dozens of plans before you pick one. You could spend days calling different companies to get quotes.
Instead of wasting hours and hours on the phone, let one of our independent insurance agents do all of that hard work for you. We work with dozens and dozens of highly rated companies across the country and we can bring all of the lowest rates directly to you.
Not only can we save you some time and money, but we can also answer any questions that you have about life insurance or the different companies. It’s our mission to ensure that you’re getting the best coverage possible.
Make an Informed Decision
Purchasing life insurance is an important financial decision, and one that should not be entered into lightly. Please take the time to compare your term life insurance options before committing to any plan. Chances are, if you are in good health, individual term life will be the better insurance policy as compared to the AICPA offered group policy.
While nobody wants to think about death, it’s an unavoidable part of life. You can’t dodge it, so you should plan for it. Not having insurance coverage is going to leave your family with a massive amount of bills and debt. That’s where your life insurance coverage comes in. In makes the process as simple as possible.
You never know when life is going to throw you a curve ball, which means that you shouldn’t wait another day to get the life insurance protection that your family deserves.
If you would like a quote, or would like to apply for coverage, please call us at 888-552-6159. If you would prefer, use our quote form on this page to compare life insurance rates and to apply online.