How
Does the AICPA Term Life Insurance Plan Compare to Low
Cost Level Term Life Insurance?
The items below identify some of the pros and cons of the
AICPA life insurance plan when compared to ordinary level
term life coverage.
The AICPA Life Insurance Plan:
- The AICPA insurance program offers members an easy way
to get term life insurance. In most cases there are no
medical exams and if you are in great health, a preferred
health (lower) rate is offered.
- The AICPA term plan is
a 5-year step rate plan with the cost increasing incrementally
every five years. I.E. 30-34, 35-39, 40-44, 45-49, etc.
- Actual
rates are subject to increase in any plan year.
- For a small
additional cost, the AICPA plan offers riders for Accidental
Death and Dismemberment, Waiver
of Premium for Disability and Dependent
Child Coverage. An Accelerated
Benefit Rider is also offered at no additional cost.
- The AICPA plan puts
a limitation on coverage depending on you membership level
and age.
- Coverage is overpriced for everyone beyond age
45, especially if the coverage will be needed beyond 5
years.
Level Term life Insurance:
- In nearly every case, in order to obtain term life insurance,
you must prove your health by passing a routine
physical exam and lab work. The insurance company will evaluate
your medical history as well as the results of your exam
to determine your actual rate
for life insurance.
- Term life
insurance can be purchased in various level periods including:
Annual Renewable Term, 5-year
level term, 10-year
level term, 15-year
level term, 20-year
level term, 30-year
level term and even level
term insurance to age 100.
- Rates are
guaranteed to remain fixed during the entire level term
period. Obviously, after the initial level period, rates
will increase significantly.
- Most term life insurance companies
offer various riders such as Waiver
of Disability (Premium) and Accidental
Death. Dependent child riders are not available
with some level term plans. As with the AICPA Life Insurance
plan, most term providers offer an Accelerated
Benefit Rider at no
additional cost.
- While most life companies do have a maximum
limit on coverage, it is not an arbitrary fixed limit but
rather a multiple of income and or net worth that in many
cases will far exceed the AICPA plan limits. See the article,
financially underwriting term
life insurance.
- Cheap term
life insurance, at preferred
rates, will be dramatically
lower than AICPA coverage costs and offer longer guaranteed
level periods.
The items above highlight just a few of the major points
in which you'll need to consider when comparing level term
life insurance versus association group life insurance coverage
offered to CPAs through the AICPA life insurance program.
For a custom quote click here or for questions or concerns,
you can call MEG Financial today
at 877-583-3955, or you
can submit this short form.
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