Fact CheckedOkay, so what is Canada Protection Plan (CPP)? It sounds like a government program, but it’s not! You haven’t been watching TV if you’ve never heard of them.
Canada Protection Plan is a mid-sized company operating in the Canadian life insurance market. But just because it is mid-sized doesn’t mean it doesn’t punch above its weight.
Also known as Plan de Protection du Canada in Quebec, CPP is the country’s best-known simplified-issue, no-medical life insurance carrier.
Look at Canada Protection Plan Reviews to help you decide if they are a fit for you.
Psst! As an aside, they are NOT to be confused with the Canada Pension Plan!
Canada Protection Plan Reviews: Pros
1. No Fluids, No Vitals, No Paperwork & No Headaches!
I don’t know about you, but it’s a good day if I don’t have to get a needle or pee in a cup.
2. More Lenient for Higher Risk Conditions than Traditional Life Insurance Companies
If you have Multiple Sclerosis or have had Diabetes, Heart trouble, or Cancer, you may qualify for Canada Protection Plan’s most affordable coverage.
3. EASY and FAST Application Process…Quick Approvals Are the Norm!
Hey, your time is valuable! Who wants to wait around, especially when there’s no health exam or any forms to fill out?
You can complete a Canada Protection Plan application over the phone in as little as 20 minutes! It’s also not unusual for your life insurance to be approved and in force within 48 hours of completing an application.
4. Competitive Rates!
Plan Protection Canada is more economical than other Simplified Issue life insurance companies. This is especially true if you’re seeking an affordable funeral insurance policy!
5. CPP Life Insurance Offers High Maximum Coverage Amounts
Within the simplified issue term life insurance niche, the Canada Protection Plan has the highest maximum coverage amounts: $25,000 – $750,000
6. First Carrier to Offer 30-Year Term, No-Medical Life Insurance
Canada Protection Plan offers Term 10, 20, 25 & 30-year policies – the most extended term offered by any Simplified-Issue Carrier in Canada!
7. High Percentage of Claims Paid Out
Canada Protection Plan pays out 98% of its claims! This is pretty standard among the top life insurance companies.
8. 2020 Merger with Foresters Financial Means Access to Foresters Member Benefits and More Products!
Because Foresters Canada underwrites Canada Protection Plan life insurance, their member benefits are available to all policyholders:
- NEW – LawAssure – create custom wills, power of attorneys, and healthcare directives
- Competitive Scholarships – up to $8,000 for children AND grandchildren
- Terminal Illness benefits – up to $250,000 for insured
- Orphan scholarships – up to $24,000 for children
- Orphan benefits – up to $900 monthly for children until age 18
- Everyday money – financial counseling
- Well-being benefits
- Community Grants – up to $2,000 to run your events
9. Widest Range of No Medical Life Insurance Products in Canada
With the addition of its new suite of no-medical critical illness products, Canada Protection Plan has cemented itself as the premier carrier in the simplified issue life insurance market.
Canada Protection Plan Reviews: Cons
1. No Medical Life Insurance Is More Expensive
If you’re healthy, Canada Protection Plan’s simplified issue term life insurance is more expensive than medically underwritten coverage from traditional insurers. No medical life insurance companies mitigate risk by charging more in premiums.
The most affordable insurance is always medically underwritten if you have no health issues.
2. Canada Protection Plan Does Not Have a Long History
Some of Canada’s best-known life insurance companies have been around for more than a century, while CPP has only been around since 1992.
3. Canada Protection Plan Eligibility Changes
In late 2022, CPP changed eligibility requirements, making it more difficult for some consumers to qualify for its most affordable coverage.
Canada Protection Plan Rates: No Medical Term
****Remember, this is no medical term life insurance for folks with mild to moderate health issues. As such, the rates are higher than those of traditional carriers. Updated July 2024.
|
Age |
$250,000 |
$500,000 |
|---|---|---|
| 35 Year Old Male | $45.68 | $85.95 |
| 35 Year Old Female | $31.05 | $56.70 |
| 40 Year Old Male | $47.48 | $89.55 |
| 40 Year Old Female | $40.05 | $74.70 |
| 45 Year Old Male | $69.08 | $132.75 |
| 45 Year Old Female | $53.33 | $101.25 |
| 50 Year Old Male | $119.25 | $233.10 |
| 50 Year Old Female | $85.05 | $164.70 |
| 55 Year Old Male | $193.05 | $380.70 |
| 55 Year Old Female | $133.43 | $261.45 |
| 60 Year Old Male | $319.95 | $634.50 |
| 60 Year Old Female | $211.95 | $418.50 |
| 65 Year Old Male | NA | NA |
| 65 Year Old Female | NA | NA |
*Quotes above are for CPP Simplified Elite Term 20, monthly, non-smoker. Your rates may differ depending on your unique circumstances.
Is Canada Protection Plan Legitimate?
If you’re looking through Canada Protection Plan Reviews, I bet you want some history!
When Canada Protection Plan entered the market in 1992, it provided the only Non-Medical Life Insurance product. Now, it offers a wide range of Simplified and Guaranteed-Issue policies.
CPP insurance plans are best suited for harder-to-insure individuals, such as the elderly or those considered higher risk. They’re also ideal for healthy consumers who are in a hurry and want to secure coverage fast!
If you’ve ever seen a Canada Protection Plan life insurance commercial, you know one of their big markets is simplified-issue term life insurance for senior citizens.
Canada Protection Plan Financial Rating
Canada Protection Plan Insurance is a privately owned corporation based in Toronto.
This business is about 35 years old, which gives it a “newbie” status in life insurance circles. CPP has grown substantially in the last ten years and employs approximately 200 people.
If you’re concerned about this company’s longevity, don’t be!
In 2020, Foresters Financial, a North American Insurance Industry giant, merged with Canada Protection Plan, making it Canada’s largest simplified issue carrier. Foresters has over $14 billion in assets and has been in business for over 145 years.
Foresters maintains an A.M. Best financial strength rating of A (Excellent).
…and the good news doesn’t stop there! Canada Protection Plan is accredited by the Better Business Bureau (BBB) with an A+ rating.
Now we’re talking!
The bottom line is you can sleep well at night knowing your family is protected with the Canada Protection Plan.
Canada Protection Plan Insurance Products
I enjoy perusing the products, so here goes!
Canada Protection Plan is known primarily for its simplified issue, which means no medical life insurance plans.
…but they also sell:
- Critical Illness
- Health & Dental
- and Travel Insurance
This company uses many different names for its plans, which can be confusing, but don’t let that scare you off! Canada Protection Plan coverage options are pretty straightforward! They offer Term, Permanent, and Critical Illness coverage.
Let’s check out their selection now!
Term Coverage
Term life insurance is hands down the best option for people 90% of the time.
It’s the most affordable coverage for those looking to protect their income and mortgage. This protection is usually bought in 10, 20, or 30-year periods.
For example, if you have a family with young children, you may want to secure a 20 or 30-year term. This protects your loved ones during their most vulnerable periods.
Your monthly cost is guaranteed to never go up over the term of coverage. When the term ends, your coverage expires. That means if you purchase a 20-year term policy for $80 per month, that cost is locked in for 20 years, guaranteed.
1. Express Elite Term
Canada Protection Plan’s Express Elite Term is a relatively new product. It’s designed for consumers in excellent health who want term coverage issued fast! This is an accelerated issue product rather than traditional no-medical life insurance.
The good news is the application process is quick. It’s typically completed in as little as 30 minutes, and a policy is issued within 72 hours.
But that’s not all. CPP also claims to have the best rates for simplified issue term life insurance, up to $750,000!
NOTE* Eligibility for CPP Express Elite requires you have no health conditions whatsoever
1. CPP Express Elite Term Insurance:
- Available as Express Elite Term 20 or Express Elite Term 30
- Designed for healthy individuals with no insurability issues
- Eligible ages 18-60 for Term 20
- Eligible ages 18-50 for Term 30
- Renewable to age 80
- Convertible to age 70
- Child rider option
- Coverage amounts $100,000 – $750,000
2. CPP Preferred Term & Preferred Elite Term
- Designed for individuals with no insurability issues in excellent or good health
- Subject to underwriting & may require a medical exam
- Eligible ages 18 – 70
- Available as term 10, 20, 25 & 25 years decreasing
- Coverage amounts $50,000 – $1,000,000
- NO waiting period
3. Simplified Elite Term
- Designed for individuals with moderate to serious health issues
- Eligible ages 18 – 70
- Available as term 10, 20, 25 & 25 years decreasing
- Coverage amounts $25,000 – $500,000
- There is NO waiting period; coverage starts immediately
4. Deferred Elite Term Insurance
- Designed for individuals with moderate to serious health issues
- Eligible ages 18 – 70
- Available as term 10, 20, 25 & 25 years decreasing
- Coverage amounts $25,000 – $350,000
- One-year waiting period
*All Term plans have a Conversion option – exchangeable for an eligible permanent plan of the same underwriting class without providing medical evidence up to the insured’s 70th birthday
Permanent Life Insurance:
1. CPP Preferred Elite Life & Preferred Life
- Designed for healthy individuals with no insurability issues
- Subject to underwriting & may require a medical exam
- Eligible ages 18 – 80
- Coverage amounts $50,000 – $1,000,000
2. CPP Simplified Elite Life
- Designed for healthy individuals with few insurability issues
- Eligible ages 18 – 80
- Coverage amounts $5,000 – $500,000
- NO waiting period
3. CPP Deferred Elite Life
- Designed for individuals with moderate health issues
- Eligible ages 18 – 80
- Coverage amounts $5,000 – $350,000
- 2-year waiting period: if death occurs from a non-accidental cause, the premiums are paid back in 1st year. 50% of the death benefits paid if death is in 2nd policy year
4. CPP Deferred Life
- Designed for individuals with moderate to serious health issues
- Eligible ages 18 – 80
- Coverage amounts $5,000 – $75,000
- Two year waiting period
5. CPP Guaranteed Acceptance Life
- Designed for individuals with terminal or life-threatening health issues
- Eligible ages 18 – 75
- Coverage amounts $5,000 – $50,000
- Two year waiting period
CPP Guaranteed Acceptance Life is a permanent product. You do not need health exams or medical questions to begin coverage.
I love it because anyone ages 18 – 75 can get this insurance! You can’t be denied!
If you’re newly diagnosed with a life-threatening illness or recently had a heart attack, you’re still eligible.
This is a good safety net for a small debt or final expenses. So what’s the catch? Because you know there is always one or two!
- The maximum amount of protection is limited to $50,000
- There’s a 2-year waiting period. If death happens within the first two policy years due to non-accidental means (other than suicide), your beneficiaries will receive a refund of all premiums paid.
- It’s the most expensive coverage; for example, a 65-year-old male will pay $216.86 monthly for $25,000 of insurance.
NOTE* Some carriers, such as Specialty Life, sell this coverage as a graded plan. That means your monthly costs increase over the plan’s life every five years. I don’t recommend graded plans because they are unsustainable, and more affordable options are on the market.
CPP No Medical Critical Illness Insurance
Canada Protection Plan announced the introduction of four new no-medical critical illness insurance plans in April of 2020. Foresters Life Insurance Company underwrites all four of these plans and of course no needles, fluids, or physical tests required!
Did you know heart conditions and cancer represent the vast majority of all critical illness (CI) claims made in Canada? The eight specific conditions that make up 90% of all CI claims are:
- Heart attack, valve replacement, or repair
- Aortic surgery
- Stroke
- Coronary artery bypass surgery
- Cancer
- Aplastic Anemia
- Benign brain tumour
More Accessible Coverage
Based on these statistics, Canada Protection Plan has decided to “bundle” these conditions and make critical illness insurance more accessible and easy to apply.
If you have previously been treated for cancer, you may still qualify for CCPP’s cardiac coverage. Likewise, someone diagnosed with heart disease or diabetes can now apply for cancer coverage.
Or, you can purchase a plan that could pay out twice: once for cardiac and once for cancer.
Most critical illness providers in Canada include 4 to 25 conditions in one policy. If you have suffered from one of these conditions in the past, you may be ineligible to receive protection for any of the remaining conditions.
Canada Protection Plan’s a la carte approach provides more Canadians access to a product that’s becoming increasingly popular. You can choose and pay only for the coverage you need.
What Is Critical Illness Insurance Anyway?
We are indeed living longer than ever before, and approximately 50% of Canadians develop some form of serious illness in their lifetime.
Fortunately, due to advances in health care, many of us survive critical illnesses. The question is, will our finances survive?
A critical illness benefit pays out a one-time, tax-free lump sum when you develop a serious illness, as stated in your policy’s definitions. You can spend the money however you wish, whether replacing your income, buying extra medical equipment, or spending your convalescence overseas.
CI has become quite popular lately, but it’s a complicated product. If you’re trying to decide whether critical illness insurance is a good buy, you must read my post here.
Other No Medical Life Insurance Companies in Canada
Canada Protection Plan is probably the best-known no-medical life insurance company in Canada. However, other carriers have offerings in this niche as well.
Some include Assumption Life, Industrial Alliance, Humania, Specialty Life, SSQ, and Wawanesa.
Canada Protection Plan Underwriting
Most Canada Protection Plan life insurance products are simplified-issue policies requiring no physical or medical tests.
This means they have lightning-fast underwriting, so your insurance is typically approved in as little as 48 hours!
CPP life insurance also encourages independent insurance advisors to speak directly with their underwriters if there are any eligibility questions or concerns.
“Simplified issue products are miles ahead of the rate books used 20 years ago. This evolution has pushed the limits of acceptance…Simplified issue term life insurance has ushered in a new technique: nonmedical pricing. It is based entirely on questions”
Canada Protection Plan Regional Vice-President, Sales, Québec Centre, Alain Plante
Canada Protection Plan & Diabetes
Can diabetics get life insurance? Certainly…
…with Canada Protection Plan, they can! If you have diabetes and are rated by a traditional carrier, you stand an excellent chance of being approved with CPP.
Canada Protection Plan Application Process
A Canada Protection Plan application requires NO fluids, NO tests, and NO forms.
However, to qualify, you must still answer about 45 specific medical questions.
The more questions you answer, the more affordable your coverage is.
Like most insurers, CPP has an electronic application process—one of the best in the business, in my opinion.
You can efficiently complete a Canada Protection Plan application over the phone (call us). When you do it remotely, you’ll be required to complete an electronic signature, which you can easily do through email or text.
Canada Protection Plan Application Questions
In no particular order, here are examples of the types of questions you can expect to answer on a Canada Protection Plan life insurance application:
- Are you currently a resident of a nursing home, and are you bedridden or wheelchair-bound?
- Have you been admitted to a hospital for more than 48 hours within the past 30 days?
- Are you 55 or over, and in the past three years, have you had treatment or surgery for or been diagnosed with angina, heart attack, coronary disease, heart bypass surgery, angioplasty, stent insertion, stroke, or chronic lung disease?
- Do you have diabetes that is treated with insulin, and the prescribed dosage has increased within the last six months?
- Within the last ten years, have you had or been told you have, or been investigated…or treated for, cancer (of any type excluding basal cell carcinoma), an abnormal growth or a malignant tumor?
- Have you lost 10% of your body weight or more within the past 12 months, other than through intentional dieting?
- Within the past year, have you been diagnosed or treated for, or are you currently under investigation for, multiple sclerosis?
Is Canada Protection Plan Right for YOU?
If you are sifting through Canada Protection Plan Reviews, you’re probably wondering if they have the right plan for you.
Remember, CPP is synonymous with no medical life insurance in Canada.
This coverage is ideal if you have serious health or insurability issues.
….or….if you’re healthy and in a rush to get affordable coverage.
You should consider CPP Life Insurance if you:
- Have moderate or severe health issues
- Partake in Xtreme sports
- Work a dangerous occupation
- You’re afraid of needles and fluids
- Have visitor or non-resident status in Canada
- You’re looking for a small policy to take care of your final expenses
- Received a Travel Exclusion with your traditional coverage
- Have no health issues and want life insurance FAST!
Call Policy Architects today! We can help you figure out whether you qualify for one of these plans and get an application started!
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