Last updated: March 13th, 2018
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 can assist you in figuring out what the best plan is for you and your needs.
The decision to purchase life insurance will impact the future of your family. While it’s difficult to think about anything tragic happening to you, purchasing life insurance is the best way to be sure your family will have the necessary funds should something tragic occur.
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, it might be easy to get hung up on how much it will cost to purchase life insurance. But, don’t worry, there are some action steps you can take to help keep your policy premiums as low as possible.
First, 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 avenue to potential savings is to do the work to make improvements to your health before you apply. The issuance of a life insurance policy is typically contingent upon the completion of a medical exam (unless you buy a group plan or a no exam policy). The results of your medical exam are going to dictate how much your policy premium will be each month. Routine exercise and a healthy diet can not only help you lose weight and lower your cholesterol and blood pressure, but also help you save money each month on your policy premiums. So, better health for you means cheaper life insurance rates as well. It’s a win-win!
Finally, one of the most important factors in premium cost is whether or not you currently use tobacco. Quitting tobacco will drastically improve your health and save you thousands of dollars yearly.
Getting Affordable Life Insurance using an Independent Agent
There are hundreds of 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. Each life insurance company has different rates based on their medical underwriting. So, if you want to ensure that you’re getting the most affordable life insurance, you’ll need to compare dozens of other plans before you pick one. Finding the right company to serve your life insurance needs could result in days of phone calls getting quotes. So, instead of spending your valuable time on the phone, let one of our independent insurance agents provide you with variety of life insurance options from the highest rated companies. We’ll do the work and you choose the policy and rate that’s right for you and your family.
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. We will do everything we can to provide you with the absolute best coverage for your situation at a price you can afford.
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 live a healthy lifestyle, individual term life will be the better insurance policy as compared to the AICPA offered group policy.
While nobody likes thinking about their own 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, so don’t delay getting the right life insurance for you and your family. Peace of mind is priceless.
If you would like a quote, or would like to apply for coverage, please contact us by calling 888-552-6159. Or, if you prefer, you can use the quote form on this page to compare life insurance rates and to apply online.