In this article, we compare the life insurance rates offered through the AICPA to other leading companies. In our recent article, AICPA life insurance review, we examine the two term products offered by the AICPA.
It can be a little confusing making sense of their two term products. These plans are referred to by different names throughout the website. We will distinguish the term products according to whether the rates are level or not. The two term life products are as follows:
- CPA Term Life – An Increasing Term Plan
- Level Premium Term (LPT)
For an explanation of these two term life options, please read through our review. There are certain eligibility requirements for both products.
To See Instant Life Insurance Quotes, Please Use the Quote Engine On This Page
It is somewhat challenging to run comparison quotes for the Increasing Term plan. The rates for the CPA term (increasing term) are based on age brackets. So, every time you hit a new age bracket (at age 30, 35, 40, 45, etc.), the rates increase.
Simplifying Things…
To simplify things, we found that it makes the most sense for you to apply for the CPA Increasing Term plan if you have a serious health condition that would make it difficult to qualify for Standard rates with most carriers. If you’re not sure about how your health affects your ability to get coverage, then call us for a consultation. We can let you know your best options.
Even though you can start at Standard rates if you are under 45, if is unlikely you will qualify for Select and Preferred rates as you get older. There is no reason to apply for the Increasing Term plan if you are under age 45 and in good health.
Again, if you’re in average to excellent health, then you will be better off with the LPL – Level Term Life plans. So, we will run some comparisons with LPL.
The rates below are accurate, but rates change frequently. For the most accurate, up-to-date rates please use our free instant quote engine. Also, please call us for a quote if you’re not sure what rate class is most appropriate.
Best Rates with Other Companies (Ohio National, Protective Life)
| Male Face Amount | $1,000,000 | |||
| 20-Year Term 35 year old – Preferred Best | $36.67 | |||
| 20-Year Term 35 year old – Preferred | $51.36 |
AICPA Level Premium Term (includes annual refund)
| Male Face Amount | $1,000,000 | |||
| 20-Year Term 35 year old – Preferred Best | $57.60 | ] | ||
| 20-Year Term 35 year old – Preferred* | $57.60 |
*AICPA LPL Term offers only one Preferred rate class
Best Rates with Other Companies (Ohio National, Protective Life)
| Male Face Amount | $1,000,000 | |||
| 10-Year Term 35 year old – Preferred Best | $20.23 | ] | ||
| 10-Year Term 35 year old – Preferred | $28.98 |
AICPA Level Premium Term (includes annual refund)
| Male Face Amount | $1,000,000 | |||
| 10-Year Term 35 year old – Preferred Best | $30.60 | ] | ||
| 10-Year Term 35 year old – Preferred* | $30.60 |
Best Rates with Other Companies (Ohio National, Protective Life)
| Female Face Amount | $1,000,000 | |||
| 20-Year Term 50 year old – Preferred Best | $113.80 | |||
| 20-Year Term 50 year old – Preferred | $139.92 |
AICPA Level Premium Term (includes annual refund)
| Female Face Amount | $1,000,000 | |||
| 20-Year Term 50 year old – Preferred Best | $154.80 | |||
| 20-Year Term 50 year old – Preferred | $154.80 |
Best Rates with Other Companies (Ohio National, Protective Life)
| Female Face Amount | $1,000,000 | |||
| 10-Year Term 50 year old – Preferred Best | $68.47 | |||
| 10-Year Term 50 year old – Preferred | $85.80 |
AICPA Level Premium Term (includes annual refund)
| Female Face Amount | $1,000,000 | |||
| 10-Year Term 50 year old – Preferred Best | $90.00 | |||
| 10-Year Term 50 year old – Preferred | $90.00 |
Guaranteed Level Term
As you can see, you will do better with looking outside the AICPA for a level term policy. This is just a sample, but you even if you only qualify for the Preferred rate (not Preferred Best), the rates will still be lower. Protective Life, Ohio National Life, Principal Life, MetLife and several other A+ rated carriers have very competitive rates that are lower than the AICPA Level Premium Term rates.
Keep in mind, the AICPA Level Premium Term rates are level, but they are not guaranteed level. This is an important distinction. Prudential Life (the insurance company used by the AICPA) is a very strong company and they are not likely to raise rates, however, they do not guarantee it. We only quote level term products that are guaranteed not to increase during the entire term period, whether it’s 10, 15, 20 or 30 term .
To qualify for the Preferred rates with the AICPA or any other carrier, you will need to undergo medical underwriting. This includes a blood, urine test and sometimes a resting EKG
| Level Premium Term – 20 Year Term | $1,000,000 | Preferred | $172.00 | $154.80 | |
| CPA Term Life | $1,000,000 | Preferred | $90.00 | $45.00 |
If you use the Rate Calculator on the AICPA site, you will something similar to the rates above. In this case, the numbers show rates for a Female, age 50 who qualifies for the Preferred rates. The numbers to the far right show the rate after the annual refund. The CPA Term Life rates look very good, but remember this is an Increasing term product. So, let’s look at the cumulative rates over 10, and 20 years.
AICPA Life Insurance Rates – CPA Increasing Term
The Increasing Term rates can be difficult to calculate, not only because the rates increase every 5 years, but there is an opportunity to qualify for a better rate classification as you get older. For example, people under age 45 can only get the Standard rates. However, when you hit age 45, you can apply for the Select (lower cost) rates. Then, at age 50, you can apply for the Preferred rates.
The Refund percentage changes every 5 years, so that was factored into the rates below.
So, for the 35-year old male example above, we will look at the CPA Increasing Term rates:
- $1372 (35-39) + $1462 (40-44) = $2834 cumulative premium over 10 years
- + $5404 (45-49) + $9048 (50-54) = $17286 cumulative premium over 20 years.
- The cumulative premium (including refunds) over 10 years is $2834 compared to $2427 with Ohio National (and other carriers) at the Preferred Best rate.
- The cumulative premium at the Preferred rate is $3477.
The Bottom Line
After running the numbers, it is clear that someone who has serious health conditions will be better off with the CPA Increasing Term plan. Because it is easy to qualify, the rates should be better than anywhere else.
For folks who are in average to excellent health, the rates are much better outside of the AICPA. The only exception we found was for people age 35 or younger who want a 10-year term.
We will be glad to run quotes for you based on your unique situation and needs. We don’t mind comparing rates to what you can get through the AICPA. Please give us a call or use the quote engine on this page.
