Multiple Options with Co-operators’ Universal Life


The Co-operators was founded in 1945 when a group of Saskatchewan wheat farmers decided to pool their collective resources to start insurance co-operative. The company has made great strides over the past 60 years, and has a significant presence in the Canadian property and casualty market.

All Co-operators insurance products are sold through a captive sales force (i.e., their sales team is limited to selling Co-operators life insurance products). Insurance products sold by captive agents tend to have higher costs because unlike an independent broker, they are unable to shop the market for the best rate; the insurance provider knows this, and prices their plans accordingly. Another reason for the higher premiums is that companies with a captive sales force tends to have more management layers and higher distribution costs, which are passed on to the consumer.

Co-operators’ universal life plan has multiple investment options, flexible premiums and level or increasing death benefits. One major flaw with their universal life plan is that the company does not offer a level cost of insurance option (COI). A level COI structure ensures the risk charge remains at a guaranteed level to age 100. The majority of Canada’s life insurance providers offer a level COI structure; this is a crucial option for applicants that want cost certainty.

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