Where do CPAs turn for life insurance quotes and advice? A very small percentage of CPAs are licensed to sell life insurance. Most look to an experienced agent/advisor for help. In this article, we look at the issues pertaining to CPAs and life insurance.
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Where Do CPAs Shop For Life Insurance?
- AICPA Life Insurance Plans
If you are a member of the AICPA, then that’s a good place to start. Check out the life insurance plans available through the AICPA. We review the AICPA plans and closely examine the products they offer in a series of articles. You can check our AICPA Life Insurance Review and our article on AICPA Pros and Cons.
We found that most CPAs will fare much better by purchasing an individual (as opposed to group) policy through several of the leading life insurance companies. AICPA life insurance is a group life insurance plan insured by Prudential. You can check out rate comparisons here or request a customized quote showing how the AICPA plans stack up against other carriers.
- National Society of Accountants
This association offers many benefits for members, but life insurance is not one of them.
- State Society or Association of CPAs
Each state association is different with regard to life insurance. Some state associations simply refer members to the AICPA; others have partnerships with local agencies. Check out your state (if you are a member) and see what they have to offer. Again, we will be glad to run comparison quotes.
Other Places to Shop for Life Insurance
- A Local Agent / Advisor
Many CPAs have established relationships with life insurance agents. CPAs that handle personal and corporate tax returns usually know several agents. It’s not uncommon for financial advisors and insurance agents to seek strategic alliances with CPAs. This could be a good option if you know an experienced, trusted agent.
Go to one of the leading Insurance Mega-sites
Sometimes, it’s easier to simply go online and shop for yourself. Perhaps you don’t want to involve a local agent for various reasons. You have to be careful here. If you take Suze Orman’s advice, she will recommend SelectQuote. This online agency is well-known and reputable. However, they only offer 10-12 carriers.
If you visit Dave Ramsey’s site, you will see that he recommends everyone shops at just Zander Insurance. Like SelectQuote, Zander offers a limited number of carriers. We show how someone shopping for coverage at a place like Zander could overpay by $15,000 over the course of 30-years. Check out our article here.
Find an Experienced, Reputable, Independent Agent
Of course, we’re a little biased here, but we think the proof is in the pudding. On the home page, you can see what makes us different from the average agent or agency. However, if you choose not to work with us, we recommend you work with someone who is truly an independent agent, representing at least 30 companies.
Additionally, we recommend that you work with an agent who has at least 10 years of experience. It takes quite a bit of time to learn this business and advocate well for clients. Oftentimes, the difference between “preferred” and “preferred best” is significant and can translate into a savings of thousands of dollars over the duration of the policy.
An experienced agent knows how to properly shop and secure the very best rate. Additionally, an experienced agent knows how to appeal unfavorable decisions and do everything possible to get a better rate classification. Read our testimonials to see examples of this.
It’s not easy for CPAs to earn their credentials. Unfortunately, the opposite is true for life insurance agents. The bar of entry is low. For this reason, experience and reputation are much more important. Experienced agents understand how to ladder policies and evaluate important riders and policy provisions.
Life Insurance for CPAs – Are Better Rates Available Due to the Low-risk Occupation?
Life insurance underwriters want to know if you have a high-risk occupation or participate in hazardous occupations. If you are commercial airline pilot or enjoy skydiving on a regular basis, you are considered a higher risk. In those situations, you’ll usually pay a higher premium. Of course, there are other factors that can cause rate increases.
CPAs will pay the same rate as everyone else for life insurance, assuming all else is equal. However, CPAs will pay less for disability insurance. CPAs qualify for the highest occupational class with almost every insurance company. This translates into the lowest premium. Sometimes, accountants with a CPA designation will receive the second highest occupational class, depending on years of experience.
Some carriers specialize in disability insurance for CPAs and other low-risk, white-collar occupations. A few carriers offer a discounted rate if you purchase a life and disability insurance policy with them. Sometimes, this makes sense – if there is a need for both types of coverage. Other times, it makes more sense to purchase the policies separately.
Life Insurance for CPAs – The Bottom Line
We hope this article has provided you with some valuable information. Taking the time to shop and consider your options is a good move. Purchasing life insurance is usually a commitment of 15, 20, 30 years or more. Ensuring you receive the best possible rates can result in a significant savings over time.
Like most CPAs, you carefully evaluate your options and make informed decisions about financial matters. If you want customized comparison quotes for various face amounts or would like advice, then we are here to help. Please complete the information on the quote engine or give us a call.