AICPA life insurance is a group coverage program offered exclusively to members of the AICPA and State Societies of CPAs through Prudential. While it offers convenient, no-exam approval for many applicants, the age-bracketed rates increase every five years and then annually starting at age 50. For healthy CPAs, an individual term life policy with level premiums often provides better long-term value.
If you’re a CPA or accountant, you’ve probably seen the AICPA life insurance program promoted alongside your membership benefits. It looks like a solid deal on the surface. Group rates, a trusted carrier, and a simple application process.
But is AICPA life insurance really the best option for you and your family? That depends on several key factors, including your age, health, and the duration of coverage you need.
In this review, we’ll break down what the AICPA insurance program offers, how it compares to individual term life insurance, and who it’s best suited for.
What Is AICPA Life Insurance?
AICPA Member Insurance Programs have been available to certified public accountants since 1947. The program is administered by Aon and underwritten by The Prudential Insurance Company of America.
To qualify for any AICPA life insurance plan, you must be a current member of the AICPA, a State Society of CPAs, or both. Spouse coverage is also available through the program.
The program offers several types of coverage, including group term life, level premium term, disability, and long-term care insurance. For this review, we’re focused on the life insurance options.
AICPA Life Insurance Plans
The AICPA offers several life insurance products for members. Each one works a little differently, so it’s worth understanding the details before you decide.
CPA Life and Spouse Life
CPA Life is the most popular plan in the AICPA program. It provides group term life insurance with coverage amounts that depend on your membership type. Members who belong to both the AICPA and a State Society can apply for up to $2.5 million. AICPA-only members can apply for up to $2 million, and State Society-only members can apply for up to $500,000. Coverage continues until age 80 as long as you maintain your membership.
One of the biggest selling points is the simplified application process. Most applicants who apply for Select rates don’t need a medical exam, and many receive instant online approval. A brief medical exam is required for Preferred rates for applicants age 45 and older.
For younger members ages 18 to 39, the CPA Life Express option offers an even faster process. You can apply with just one medical question and could be instantly approved for up to $1 million in coverage.
The plan uses three rate classes: Preferred, Select, and Standard. Your rates are based on your age as of October 1st each year. Starting at age 30, rates increase in five-year intervals. At age 50, rates begin increasing annually. The AICPA also offers an annual cash refund on premiums paid, typically ranging from 10% to 40%. This refund is not guaranteed and varies based on Prudential’s claims experience and expenses for that year.
Spouse Life coverage follows the same general structure and is available to spouses of eligible members.
CPA Level Premium Term Life
For members who want rate stability, the AICPA also offers a Level Premium Term (LPT) option. This plan locks your rate for either 10 or 20 years.
Both the 10-year and 20-year terms are available to members ages 18 to 55. Members ages 56 to 65 are only eligible for the 10-year term. After the initial term period ends, rates increase annually.
This option is closer to what you’d find in the individual life insurance market. The key difference is that it’s still a group policy tied to your membership.
Pros and Cons of AICPA Life Insurance
| Pros | Cons |
|---|---|
| No medical exam for most Select rate applicants | CPA Life rates increase every 5 years, then annually at age 50 |
| Coverage up to $2.5 million (with dual membership) | Coverage tied to AICPA or State Society membership |
| Annual cash refund on premiums (not guaranteed) | Annual cash refund varies each year and is not guaranteed |
| Backed by Prudential, a financially strong carrier | Limited rider options compared to individual policies |
| Coverage continues to age 80 | No final expense or whole life options available |
| Simple online application with quick approval | Coverage is reduced at age 75 |
AICPA Group Coverage vs. Individual Term Life Insurance
This is where the decision gets interesting. AICPA life insurance is a group policy, and group policies work differently than individual term life insurance.
With the standard CPA Life plan, your premiums increase every time you enter a new age bracket. That starts at five-year intervals beginning at age 30, then shifts to annual increases at age 50. Even with the annual cash refund factored in, the total cost over 10 to 20 years can add up quickly.
An individual level term life insurance policy works differently. You lock in one rate for the entire term, whether that’s 10, 15, 20, or even 30 years. Your premium stays the same from the first payment to the last. For healthy applicants, individual term life rates are often lower than the AICPA group rates over the same period.
Individual policies also tend to offer more flexibility. You can choose from a wider range of carriers, add living benefit riders, and your coverage isn’t tied to any membership or employer. If you leave the AICPA or your State Society, your individual policy stays with you.
The AICPA does offer their Level Premium Term option, which locks rates for 10 or 20 years. That’s a better comparison to individual term life. But even here, individual policies from top-rated carriers often provide more competitive pricing for applicants in good health.
Who Should Consider AICPA Life Insurance?
AICPA life insurance can be a good fit in certain situations. If you have health conditions that make it difficult to qualify for individual coverage, the group plan’s simplified underwriting can be a real advantage. You may get approved without a medical exam when an individual policy would require one. You can also explore no medical exam life insurance options outside of the AICPA program.
It’s also convenient. If you’re already a member and want basic coverage without shopping around, the application process is fast and straightforward. The CPA Life Express option for members under 40 is especially quick.
That said, if you’re in good health and want the best value for your money, individual term life insurance is usually the better choice. You’ll get level premiums, more carrier options, and a policy that isn’t dependent on maintaining a professional membership.
The best approach is to compare both options side by side. Get a quote for individual term life coverage and compare it to the AICPA rates for your age and coverage amount. The numbers will tell you which option makes the most sense for your situation.
Frequently Asked Questions
Do I have to be a CPA to get AICPA life insurance?
You need to be a current member of the AICPA or a State Society of CPAs. Your maximum coverage amount depends on which memberships you hold. Members of both the AICPA and a State Society are eligible for the highest coverage amounts.
Does AICPA life insurance require a medical exam?
Not always. Most applicants who apply for Select rates can get approved without a medical exam. The CPA Life Express option for ages 18 to 39 requires only one medical question. Preferred rates for applicants age 45 and older do require a brief medical exam.
What happens to my AICPA life insurance if I cancel my membership?
Your coverage ends if you’re no longer an AICPA or State Society member. This is one of the key differences between group and individual coverage. An individual term policy stays in force regardless of any professional memberships.
Is the AICPA annual cash refund guaranteed?
No. The annual cash refund varies each year based on Prudential’s claims experience and operating expenses. It has historically ranged from 10% to 40% of premiums paid, but it’s not guaranteed.
Can I have both AICPA life insurance and an individual policy?
Yes. Many CPAs use AICPA coverage as a supplement to their individual term life insurance. There’s no rule against holding both, and it can be a smart way to layer your coverage.
How much coverage can I get through AICPA?
CPA Life offers up to $2.5 million for members who belong to both the AICPA and a State Society. AICPA-only members can get up to $2 million, and State Society-only members can get up to $500,000. These maximums decrease as you get older.
Key Takeaways
- AICPA life insurance is a group program underwritten by Prudential, available to AICPA and State Society of CPA members and their spouses.
- The CPA Life plan offers up to $2.5 million in coverage (with dual membership) and no medical exam for most applicants at Select rates.
- CPA Life premiums increase every five years starting at age 30, then annually at age 50. The annual cash refund is not guaranteed.
- Individual term life insurance typically offers level premiums, more flexibility, and better long-term value for healthy applicants.
- Compare AICPA group rates to individual term life quotes before making a decision.
Ready to see how individual term life insurance compares to your AICPA coverage? Use the quote tool on this page to get a free, no-obligation comparison from top-rated carriers, or call us at 800-712-8519.
