CPAs (Certified Public Accountants) spend their careers helping people navigate decisions about finances, but it’s important to make sure their own wealth and assets are also protected. That’s where life insurance comes in, as it offers a financial safety net for your loved ones when you pass away.
However, there are specific considerations CPAs should keep in mind as they shop for life insurance. In this article, we’ll explore how life insurance can benefit CPAs, how CPAs should go about shopping for life insurance, and the different types of life insurance that may suit the needs of CPAs.
Why do CPAs need life insurance?
CPAs play a crucial role in managing financial matters for individuals and businesses. While they often advise clients on insurance needs, CPAs themselves can benefit significantly from having life insurance. Here’s a look at why they may need this kind of coverage:
Financial Security for Dependents: Life insurance provides a safety net for family members and other dependents. Since CPAs are high earners, it’s important to ensure anyone who depends on their income would have enough financial protection to cover important expenses and maintain a standard of living if they were to pass away.
Debt Coverage: CPAs may have significant financial responsibilities, like student loans. Life insurance can help settle these debts, preventing financial burdens from falling on loved ones.
Business Continuity: For CPAs who own their firms, life insurance can facilitate business continuity. It can fund a buy-sell agreement, ensuring that the business can continue operating smoothly in the event of the owner's death.
Estate Planning: Life insurance can play a crucial role in estate planning by providing liquidity to cover estate taxes and other expenses, allowing heirs to inherit assets without the need to liquidate them.
Professional Credibility: As financial advisors, CPAs who have life insurance demonstrate a commitment to financial planning and risk management, enhancing their credibility with clients.
For CPAs, life insurance is not just a product they recommend to clients, but a valuable tool for their own financial security and professional success.
Best Types of Life Insurance for CPAs
Certified Public Accountants have unique financial needs and responsibilities, making it crucial to choose the right life insurance policy. Here are some of the best options for CPAs:
Term Life Insurance: Term life insurance only offers coverage for a specific period of time, which makes it easy to align with the length of specific financial goals, like paying off student loans acquired by a CPA over the course of their education. This is often the most affordable option, providing coverage for a specific period (usually 10-30 years). Term life insurance is popular due to its affordability and flexibility, making it a manageable expense for CPAs to balance with other financial obligations.
Permanent Life Insurance: Unlike term life insurance, permanent life insurance provides lifelong coverage. It also builds cash value over time, which can be borrowed against or withdrawn. This type of coverage may appeal to CPAs due to the cash value, which can serve as an additional tool in the policyholder’s portfolio for investing or retirement planning.
As a CPA can often be a busy and demanding career, so finding the time to shop for life insurance may be difficult. For this reason, CPAs may consider no medical exam life insurance, which allows you to skip the medical exam process and obtain instant coverage. When you work with SelectQuote to secure no medical exam life insurance (if you’re under age 60 and in good health), you could qualify for up to $5 million in coverage in less than an hour.
Find the Right Life Insurance Policy for Your Needs With SelectQuote
SelectQuote has nearly 40 years of experience helping people from all careers, including CPAs, find the right life insurance for their unique financial circumstances. Our licensed insurance agents make securing life insurance easy and quick, with the ability to compare plans and rates from several of the nation’s most highly trusted carriers in just minutes.
