Canada Protection Plan Increases Coverage Levels

Going Down by Joshua Williams
Canada Protection Plan has enhanced
its no-medical product line-up.
Photo by Joshua Williams

Canada Protection Plan, with plans underwritten by Foresters Life Insurance Company, has just enhanced it no-medical product line-up as of July 2013.

Its deferred life and simplified life plans are now available with face amounts up to $75,000 — while they were previously at $50,000.

The deferred life plan has a two-year waiting period on its death benefit, while the simplified life plan has an immediate death benefit. All Canada Protection Plan policies have no medical tests, but the Simplified Life Plus plan has an additional three health questions. The first question also has several sub-questions.

Canada Protection Plan's Simplified Life Plus plan is now offered with face amount of $100,000, but the previous issue limit was $75,000. The Simplified Life Plus plan has the same questions as the Simplified Life plan, but the time frame for an illness diagnosis is within the last five years, rather than the last three years, which will give you a possible decline.

The Simplified Life Plus plan also has a question about physical build, which has also been modified to be more permissive. For example, an individual who is 5'5" can now get coverage as long as their weight is within the range of 108 pounds and 227 pounds.

Canada Protection Plan's no-medical term insurance line-up has also been enhanced. The deferred term 10, term 20, and term 100 plans are all available with issue values of $150,000. In the past, they were limited to $100,000. The Deferred Term plan has a death benefit, which is limited to a return-of-premium plus interest for non-accidental deaths in the first two policy years.

The Simplified Term and Simplified Term Plus plans now have issue limits of $200,000, but they were at previous maximums of $150,000. The build tables have also been adjusted on these plans to more liberal levels. The premiums on these plans have increased in some instances and decrease in others, but overall, plans remain highly competitive relative to other carriers that cater to the hard to insure market.

Below is some sample pricing for a male non-smoker whose age is nearest to 40.

  • Deferred Term 10 with $150.000 of coverage would cost $59.13 a month.
  • Deferred Term 20 with $150.000 of coverage would cost $59.40 a month.
  • Deferred Term 100 with $150.000 of coverage would cost $184.12 a month.

And here is the Simplified Term pricing for a male non-smoker with an age nearest to 40.

  • Simplified Term 10 with $150.000 in coverage would cost $37.13 a month.
  • Simplified Term 20 with $150.000 in coverage would cost $40.73 a month.
  • Simplified Term 100 with $150.000 in coverage would cost $178.12 a month

LSM Insurance's take: Canada Protection Plan continues to be a mainstay in the Canadian no-medical life insurance market. Their are several carriers offering simplified issue permanent plans, but there are fewer choices in the no-medical term insurance market, so these Canada Protection Plan upgrades are great for clients who have health issues or have been declined for insurance in the past. As seen above, there is very small price difference for younger applicants between their Term 10 and Term 20, so for younger applicants on a limited budget, Canada Protection Plan's Term 20 policy provides a great value.

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2 Comments

  1. Brokers World 09/14/2013 at 9:50 am

    How does CPP Simplified Life stack with Equitable Life’s new plan>

  2. LSM Insurance 09/14/2013 at 10:09 am

    Canada Protection Plans fair very favourably especially for the younger ages. Equitable Life’s plan is more similar to Assumption Golden Protection Plan in terms of design and pricing. One big benefit Assumption has over the Equitable plan is they insure applicants 85 and under.

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