If you are a CPA who has enrolled in one of the AICPA-endorsed life insurance plans, you may be eligible to receive a refund on your premiums every year. This is one of the unique benefits of the AICPA life insurance program, which offers affordable and flexible coverage options for CPAs and their families.
In this article, we will explain everything you need to know about the AICPA life insurance refund, including what it is, how it works, how to receive it, and how to save more on your life insurance.
What is the AICPA Life Insurance Refund?
The AICPA life insurance refund is a feature of the AICPA Group Insurance Trust and the AICPA Insurance Trust for Accountants. These are two separate trusts that administer different types of life insurance plans for CPAs, such as CPA Life, Level Premium Term, Group Variable Universal Life (GVUL), and Spouse Life. The trusts are overseen by a committee of CPAs who are also participants in the plans.
Annual Cash Refund
The annual cash refund is a distribution of excess premiums that are paid by the participants in the life insurance plans. The amount of the refund depends on several factors, such as premiums, claims, expenses, and other charges. The refund varies from year to year and is not guaranteed. However, the trusts have paid annual cash refunds every year since each life insurance plan’s inception.
Trust Refund
The trust refund is a distribution of excess income that is generated by the trusts from investing the premiums paid by the participants. The amount of the trust refund depends on the investment performance and expenses of the trust. The trust refund varies from year to year and is not guaranteed. The trusts have paid trust refunds every year since 1984 for each disability insurance plan.
Refund Percentages of Contributions
The refund percentages of contributions are the percentages of premiums that are refunded to the participants in each life insurance plan. The refund percentages vary by age group, underwriting class, and payment mode. The refund percentages are announced every year by the committee of CPAs in a report that is mailed to all participants along with their refund statements.
How Annual Cash Refunds are Calculated?
The annual cash refunds are calculated based on the coverage in force throughout the specified plan year. For example, if you enrolled in a life insurance plan on July 1, 2022, your annual cash refund for 2022 would be based on your coverage from July 1 to December 31, 2022. If you changed your coverage amount or type during the plan year, your annual cash refund would reflect those changes accordingly.
How to Receive Your Refund?
The refunds are usually distributed in mid-February of each year. You can choose to receive your refund in one of three ways: as a check, as a direct deposit to your bank account, or as a credit to your account.
ACH Option for Faster Delivery
If you want to receive your refund faster and more conveniently, you can sign up for the Automated Clearing House (ACH) option. This option allows you to have your refund deposited directly to your savings or checking account on the day they becomes available. To sign up for this option, you need to register at www.trustmyaccount.cpai.com and update your preference under the “Annual Refunds” section. As a bonus, you may receive a one-time $25 increase to your refund in the year you enroll in this option.
Requesting a Replacement Refund Check
If you lose or misplace your refund check, you can request a replacement by calling Aon at 1-800-223-7473 or submitting a written request to Aon Insurance Services, AICPA Insurance Trust, 159 E. County Line Road, Hatboro, PA 19040. You can also access your online account at www.trustmyaccount.cpai.com to view your refund statement and print a duplicate copy of your Schedule K-1.
Validity and Timeframe of Refund Checks
The refund checks are valid for 180 days from the date of issuance. If you do not cash your check within that time frame, it will be deemed null and void. In that case, a credit will be posted to your account and deducted from the next invoice due on your account.
Ways to Save on AICPA Life Insurance
The refunds are one of the ways that you can save on your AICPA life insurance premiums. However, there are other ways that you can lower your cost of insurance and get more value from your coverage.
Annual Cash Refunds
As mentioned earlier, the annual cash refunds can help reduce your effective cost of insurance by returning a portion of your premiums every year. The amount of the refund depends on several factors, such as your age group, underwriting class, and payment mode. You can increase your refund by choosing a lower-cost underwriting class, such as Preferred or Select, or by paying your premiums annually instead of semi-annually or monthly.
Rate Classes
The rate classes are the categories of premiums that are based on your health status, tobacco use, and other risk factors. The AICPA life insurance plans offer four rate classes: Preferred, Select, Standard, and Tobacco. The Preferred and Select classes offer lower premiums than the Standard and Tobacco classes for the same amount and type of coverage. To qualify for these classes, you need to meet certain health and lifestyle criteria that are determined by the insurer, Prudential.
Life Needs Estimator
The life needs estimator is a tool that helps you determine how much life insurance you need based on your personal and financial situation. By using this tool, you can avoid overpaying for coverage that you do not need or underinsuring yourself and leaving your family vulnerable. You can access the life needs estimator at www.cpai.com/life-needs-estimator.
Coverages for Personal and Dependents
The AICPA life insurance plans offer a variety of coverages for you and your dependents, such as spouse, children, and grandchildren. You can choose from different types of plans, such as term or permanent, and different amounts of coverage, from $10,000 to $2.5 million. You can also customize your coverage with optional features, such as accidental death and dismemberment (AD&D), waiver of contribution (WOC), and dependent child coverage.
Conclusion
The AICPA life insurance refund is a valuable benefit that can help you save money on your life insurance premiums and get more out of your coverage. By understanding how the refund works, how to receive it, and how to save more on your life insurance, you can make the most of this unique feature of the AICPA life insurance program.
