Equitable Life Simplified Whole Life Insurance

Insurance broker
Ask your broker about
Equitable Life’s Final Protection.

Equitable Life recently introduced a new simplified issue life insurance policy, which is called Final Protection. This whole life policy is non-participating, meaning it does not produce a dividend.

It offers coverage face amounts from $5,000 to $50,000. Applicants can be aged 40 to 80. There are no medical tests and only a short series of health questions. Brokers can use Equitable Life’s electronic application, so the policy can be issued quicker.

The simplified issue life insurance market in Canada has heated up in recent years. Equitable Life joins a crowded line-up of providers, including Assumption Life, Canada Protection Plan underwritten by Foresters, Wawanesa Life, Industrial Alliance, La Capitale, BMO Insurance, and Manulife Financial. Both BMO and Manulife Financial sell their policies direct and bypass their broker network.  Be careful not to confuse simplified issue life insurance with guaranteed issue life insurance, which also has no medical tests and no health questions.

You should only purchase guaranteed issue policies if you are unable to qualify for a simplified issue plan, as the premiums are significantly higher and the face amounts are lower.

Equitable life’s Final Protection plan provides guaranteed lifetime protection that can never be canceled and remains with the insured for life, as long as premiums are paid. The premiums are also guaranteed to never increase and the policy has a guaranteed cash value. Furthermore, the policy has a reduced paid-up insurance feature, meaning that if the insured wishes to stop paying their premiums at some point in the future, the reduced paid-up feature allows the insured to maintain some of the coverage without having to continue making premium payments.

The policy also has a built-in accidental death benefit. which pays out double the policy face amount in the event the insured dies by accident. For this additional amount to be paid out, the death must occur within 90 days of the accident.

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  • Ami Maishlish
    September 4, 2013 at 2:39 pm

    Yes, Equitable Life’s Final Protection product is an excellent product and well worth serious consideration within the context of “simplified issue” products. Equitable Life’s Final Protection product is included in LifeGuide, in the Supplemental Products’ grouping, under the heading “Special Risk”. As the article correctly notes, in addition to being guaranteed level premium and level benefit offering, Equitable Life’s Final Protection product also includes early starting cash values and reduced paid up values (these are illustrated for each and every policy year in LifeGuide).

    Overall, and within the context of “simplified issue” products Equitable Life’s Final Protection is a very welcome addition, highly competitive and well worth serious consideration. It therefore comes as no surprise that Equitable Life made certain that its Final Protection product was included in LifeGuide as soon as it was introduced, and along with the yearly value details, plan description, etc.

    I fully concur with the article’s note that the so called “Guaranteed Issue” offerings should only be considered by individuals who are unable to meet the qualifications for a standard issue or simplified issue plan. I would add that it is imperative to know whether the premiums and values in life insurance policies are guaranteed or are just projections. Ask your agent or broker for a detailed illustration of the premiums, coverage and policy values for each and every year of the policy, as well as for a specimen of the contract wording. This applies not just for this product but for every life insurance product that an agent or broker may offer you.

    • LSM Insurance
      September 4, 2013 at 3:24 pm

      Good points Ami. An interesting note on Guaranteed Issue policies (especially ones sold direct) and many Simplified Issue policies is they do not require the applicant to sign an illustration. So it’s crucial the application and policy are reviewed carefully.