How does a CPA end up as Senior Director of Operations at a not-for-profit insurance organization?
David: Like some of the best career moves, it was a random chance. After getting my CPA, I started working in various roles within technology start-ups and eventually founded a company. Every dollar the company made was reinvested in growing the business, and with our second child on the way, we needed to find an additional source of income. So, I applied for every accounting job offering casual work arrangements, and CPA Insurance Plans West (CPAIPW) was the first one who called me. As the company grew, I saw incredible potential and became more involved until I joined full-time about three years ago. Today, I oversee all the operations of the business.
What exactly does CPAIPW do?
David: We provide insurance products and services to CPAs, their families, and CPA firms on a not-for-profit basis. We exist for one reason: to provide value to CPAs.
What insurance products does CPAIPW offer?
David: We specialize in Life Insurance, Critical Illness Insurance, Accident Insurance, Disability Insurance, Health & Dental Insurance, Home & Auto Insurance, and Travel Insurance. Each of these products is designed with CPA professionals in mind, ensuring they meet the specific needs and challenges faced by individuals in our field.
What differentiates CPAIPW from other insurance providers?
David: CPAIPW is the only not-for-profit in western Canada that exclusively serves CPAs. We recognize CPAs have options, so we have to provide more value than anyone else. We offer the lowest cost to CPAs while providing a delightful experience.
Some other differentiators that contribute to our advantage include:
• We only serve CPAs and their families, who are generally a low-risk pool relative to the general public, which leads to lower prices.
• We also have an advantage over other providers as we don’t pay taxes, and there are no shareholders expecting a return on investment, interest, or dividends.
• We don’t pay commissions, which reduces costs and ensures our advisors offer unbiased advice.
• We promise every interaction will offer our 5-star experience designed to delight our CPAs, partners, and employees. At the heart of our 5-star experience are enthusiastic team members eagerly providing thoughtful, helpful solutions.
What are three things you wish everyone knew about Life Insurance?
David: The most common response I get when I speak to people about Life Insurance is, “I have mortgage insurance and my employer provides some coverage, so I’m fine.” I want everyone to know, they are likely not fine.
Mortgage insurance through the banks is rarely the best choice. Firstly, it’s just a fancy name for Life Insurance. There are many reasons to avoid mortgage insurance, and I could go on quite the rant about this one, but to keep it short, it is more expensive, the beneficiary is always the lender, the policy is not portable, the coverage decreases as you pay down the mortgage, underwriting is done post-claim (have to wait until there is a claim before you know if you qualify), and it expires when you pay off your mortgage. A Life Insurance policy that includes the value of the mortgage is usually a much better option.
Regarding the second part of that statement, “my employer provides Life Insurance”, most people need more coverage than what their employer provides. I’d encourage each person to take a detailed needs assessment to determine how much coverage makes sense for them, but as a good starting point, you should have at least 10 times your annual salary. So, if you make $100,000, you should have a million-dollar policy. It’s rare for an employer to provide more than 3x salary, so that’s only $300,000; even if you factor in $500,000 in mortgage insurance, that’s well short.
One other common misconception is that Life Insurance is expensive. For a 30-year-old, rates start at just $10 per month for a $500,000 policy. For most CPAs, that is a really affordable price to protect loved ones against the unexpected.
How can CPAs get started with insurance from CPAIPW?
David: Our website cpaipw.ca is a great place to start! We have a needs assessment tool, as well as an online quote system. You can also reach our fabulous team at 1-800-661-6430 – they’d love to hear from you.