Assumption Life’s No-Medical InstaTerm Policy
Assumption life released its highly anticipated InstaTerm policy over the holiday season.
Named 33rd of the top 101 companies to work for in Atlantic Canada, Assumption Life is already a leading carrier in the permanent no-medical life insurance market. It’s trying to tap into the increasingly crowded no-medical term insurance market.
On the other side of the spectrum, Humania Assurance has already made a big splash with its no- medical term policies with face amounts up to $300,000, and Canada Protection Plan also increased its issue limits in 2013.
Assumption Life’s InstaTerm policy is available on an immediate-pay or deferred-pay basis and is available as a 10-year or 20-year term ride. There’s also an accidental fracture benefits rider, a children’s insurance rider, and an accidental death rider available.
The non-deferred policy is renewable and convertible, whereas the deferred policy is not. Both plans have a live-in transportation benefit included and can can be combined with Golden Protection Plan — Assumption Life’s simplified-issue permanent plan.
The issue ages on the policy are 20 to 70 years old, and the available coverage can be up to $150,000 on the regular InstaTerm plan and $100,000 on the InstaTerm Deferred plan. The premiums are guaranteed level for the term selected and they come with both smoker and non-smoker rates. The plans are available either as individual policies or as a rider.
LSM Insurance Take:
The product offers an interesting solution to younger applicants who have traditionally been ignored in the hard-to- insure market. Most simplified-issue policies only offer coverage to applicants aged 40 and over. It also offers a unique options for older applicants who work but can’t afford permanent policies. An example of this is a 70-year-old, male non-smoker taking $50,000 of Golden Protection coverage and paying $392.99 a month. However, the same applicant would only pay $229.64 a month for $50,000 of Instaterm 20 coverage, which is 58% of Golden Protection Plan’s cost. You should note, however, the InstaTerm qualification questions are slightly more difficult than Golden Protection Plan questions.