Four Features for Future Fortunes

Canada Life

Canada Life Assurance Company offers four types of disability plans: lifestyle protection plan, independence plan, overhead expense plan, and a buy/sell plan. Its flagship disability product is their lifestyle protection plan. The plan is non-cancellable (i.e., you can cancel the plan but the insurance company cannot) and is guaranteed renewable. The policy is designed for professionals, business owners and executives.

The plan is very flexible—providing basic injury and illness protection, and allowing the applicant to choose from a host of riders which enhance the level of protection. One unique feature is their “own occupation” feature, which ensures that the insured will be entitled to a claim under the plan as long as an injury or illness prevents them from doing their own occupation. This can be advantageous, especially for highly skilled professionals such as surgeons.

A cost of living feature can also be added which provides for the benefit to stay in line with inflation. Future income options allow the insured to upgrade coverage as their income increases, without any additional medical requirements.

Another very popular feature is their return of premium benefit, which returns 50% of the eligible premiums paid after seven years, if no more than 20% of the premiums have been paid out in claims. As an example, an individual who contributes $20,000 to their Canada Life disability plan over seven years and remained healthy for the entire period would receive $10,000 back. Therefore, the net cost of the coverage is $10,000.

Canada Life’s independence plan is geared toward the blue-collar worker. The coverage is more limited than their lifestyle plan, and is available with or without protection from illness-related disabilities. The latter is available without a medical.

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