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Canada Protection Plan Term Life Insurance Review

by Mark Cluett
10 min read

Canada Protection Plan Term Life Insurance Review

Canada Protection Plan is unquestionably the leading provider of non-medical and simplified life insurance products in Canada. If you’re having difficulty finding insurance, have been rejected for life insurance in the past, or simply want to apply and get approved for life insurance quickly, Canada Protection Plan is one of your best options. 

Though keep in mind: if you are in good health and don’t mind the few weeks of waiting period which often accompanies medical underwriting, lower priced options are available to you.

Pros

  • Multiple products offering simplified, no-medical coverage for applicants across all health categories
  • Most products are available through a quick, simple, online application without any medical tests  
  • Several terms are available including 10, 20, 25, and 30 year coverages
  • Affordable coverage pricing, especially when compared to pricing multipliers (aka ratings) imposed by traditional insurance companies on applicants with prior health issues
  • Available to temporary residents such as those on a student or work visa– you don’t have to be a Canadian citizen or work permit holder.
  • Most plans offer life protection from the time the policy is put in place. 
  • Customers can pay annual premiums by credit card.

Cons

  • Canada Protection Plan policies can be more expensive than plans from other insurers for those in good health. You pay a higher premium in exchange for the convenience of coverage with no-medical underwriting.
  • Coverage amounts are limited to a maximum of $1-million. If you require higher coverage, you will need to look for another insurance provider.
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Best Life Insurance For Non-Medical Offerings

Canada Protection Plan Whole Life Insurance

Canada Protection Plan

N/A

AM Best
financial strength rating

PolicyAdvisor.com Rating

Best Life Insurance For Non-Medical Offerings

Canada Protection Plan Whole Life Insurance

Canada Protection Plan

N/A

AM Best
financial strength rating

PolicyAdvisor.com Rating

Canada Protection Plan Term Life Insurance Pricing – Simplified Elite

Representative values, based on non-smokers in good health. $500,000 coverage, 20-year term.

AgeMaleFemale
30$80.10$51.30
35$85.95$56.70
40$89.55$74.70
45$132.75$101.25
50$233.10$164.70
55$380.70$261.45
60$634.50$418.50
65N/AN/A

Who is Canada Protection Plan?

Canada Protection Plan – founded in 1992 – is a privately-owned Canadian insurance intermediary that develops, designs, and distributes life insurance and related products for the Canadian consumer. Canada Protection Plan’s offerings are unique in the Canadian life insurance marketplace as these products offer quick, simplified, non-medical coverage options to applicants with varying health or lifestyle considerations.

Canada Protection Plan’s term and whole life insurance products are underwritten by Foresters Life Insurance Company, a subsidiary of Foresters Financial, one of North America’s oldest insurance companies, with a history that dates back to over 140 years. 

Thus, Canada Protection Plan customers are part of the Foresters benefit program. (This also grants Canada Protection Plan policyholders access to unique member benefits offered by Foresters Financial, such as grants and scholarships for children, emergency assistance program, money management consultations, etc.)

Canada Protection Plan expanded their operations into Quebec in 2019, with the brand name “Plan de Protection du Canada.” 

Canada Protection Plan operates in a particular niche: Providing life insurance to hard-to-insure applicants. Canada Protection Plan’s insurance offerings can be a great option for those that were previously refused insurance, or have pre-existing health conditions.

Canada Protection Plan’s insurance products are also great alternatives for applicants that are healthy and wish to obtain coverage quickly, have an aversion to medical tests, or engage in extreme sports and therefore may find traditional life insurance alternatives unsuitable for their needs from a timing and/or pricing perspective. 

They also offer guaranteed issue and non-medical small whole life insurance policies with coverage amounts starting from $10,000. These are a good option to choose when planning for funeral expenses and are designed for those with challenging health conditions.

The company paid out 98% of non-contestable claims in 2018.

Canada Protection Plan: Quick Facts

  • Founded: 1992
  • Headquarters: Toronto, Ontario
  • AM Best Rating: N/A – Foresters*: A (Excellent)
  • Better Business Bureau Accreditation and Rating: Yes / A+
  • Assets: N/A – Foresters*: $2.6-billion
  • Annual Premiums: N/A – Foresters*: $1.3-billion

*Values are shown for Foresters, underwriting company for Canada Protection Plan life insurance products

Does Canada Protection Plan sell term life insurance?

Yes, Canada Protection Plan offers 5 different term life insurance products that vary in the amount of term coverage offered based upon health ratings of individual applicants

Deferred Elite Term

  • Designed for hard-to-insure applicants with somewhat serious health conditions or those who have been denied life insurance coverage in the past
  • No medical application process
  • Coverage up to $350,000
  • Coverage periods of 10, 20, or 25 years
  • Guaranteed premiums that are renewable to age 80 and convertible to age 70
  • The deferred product has a limitation such that the life insurance coverage amount is only payable if death occurs after 2 years or death is due to an accidental cause. 

Simplified Elite Term

  • Designed for those in relatively good health or engaged in extreme sports, or those who do not want to take a medical exam
  • No medical application process and immediate coverage
  • Coverage up to $500,000
  • Coverage periods of 10, 20, or 25 years
  • No waiting period
  • Guaranteed premiums that are renewable to age 80 and convertible to age 70

Preferred Term

  • Designed for applicants in good health who want coverage faster than through traditional underwriting
  • No medical application process and immediate coverage
  • Some additional underwriting questions vs simplified elite term product
  • Coverage up to $1,000,000
  • Coverage periods of 10, 20, or 25 years
  • No waiting period, coverage starts immediately
  • Guaranteed premiums that are renewable to age 80 and convertible to age 70

Express Elite Term

  • Designed for those in excellent health
  • No medical application process and immediate coverage
  • Coverage up to $750,000 (for ages 18-50) and $500,000 (for ages 51-60)
  • Coverage periods of 20 or 30 years
  • No waiting period, coverage starts immediately
  • Guaranteed premiums that are renewable to age 80 and convertible to age 70

Preferred Elite Term

  • Designed for applicants in very good health who want coverage faster than through traditional underwriting
  • This plan is fully underwritten – thus it requires medical underwriting
  • Coverage up to $1,000,000
  • Coverage periods of 10 years, 20 years or 25 years
  • No waiting period, coverage starts immediately
  • Guaranteed premiums that are renewable to age 80 and convertible to age 70

What term life insurance amounts and coverage does Canada Protection Plan offer?

  • Available Term Lengths: Canada Protection Plan offers term periods of 10 years, 20 years, 25 years, 25 year decreasing coverage, or 30 years. The offered coverage terms depend on the chosen product and/or health condition of the applicant.
  • Available Term Types: They offer both level and decreasing term plans. If you are clear about your financial obligations and their time periods, you can take advantage of decreasing premiums in a plan such as the 25-year decreasing term plan. For instance, decreasing term plans are great for mortgage protection.
  • Maximum Amount of Coverage: $1-million
  • Convertibility: All level term plans are renewable and provide coverage to age 80 and convertible to a permanent plan until age 70.
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What other insurance coverage does Canada Protection Plan offer?

In addition to term life insurance, Canada Protection Plan also offers: 

  • Whole life insurance
  • Critical illness insurance
  • Travel insurance (underwritten by Cumis General Insurance Company and administered through Allianz Global Assistance)
  • Health & dental insurance (through Manulife).

Is Canada Protection Plan right for you?

Canada Protection Plan offers unique life insurance coverage products that are a great fit for many Canadians consumers that value the convenience offered by non-medical products. As insurance advisors for Canada Protection Plan’s life insurance products, we can help you decide if Canada Protection Plan products are the best fit for you.

As Canada’s best online life insurance advisor, we will assist you in comparing and choosing products across all our partner companies. Speak to our licensed advisors and we will be able to assist you in finding you the best coverage for your needs.

The information above is a brief representative summary for indicative purposes only. It does not include all terms, conditions, limitations, exclusions, termination and other provisions of the policies described, some of which may be material to the policy selection. Please refer to the actual policy documents for complete details. In case of any discrepancy, the language in the actual policy documents will prevail. A.M. Best financial strength ratings displayed above are not a warranty of a company’s financial strength and ability to meet its obligations to policyholders.

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