Life insurance provides financial security for your loved ones when you pass away. However, getting affordable coverage can be difficult for some Canadians due to health issues or other risk factors. This is where no medical and simplified issue life insurance policies come in.
One popular provider of these policies is Canada Protection Plan (CPP). In this CPP review article, we’ll analyze CPP’s offerings to help you determine if their products make sense for your situation.
What is the Canada Protection Plan?
Founded in 1992 and headquartered in Toronto, Canada Protection Plan (CPP) is a leading provider of non-medical and simplified-issue life insurance products in Canada.
This allows higher-risk applicants to obtain coverage without undergoing full medical underwriting. Instead, CPP uses a streamlined application with just a few health history questions. No medical exams or Attending Physician Statements (APS) are required.
Foresters Life Insurance Company, a subsidiary of Foresters Financial, underwrites CPP’s life insurance offerings. This company boasts over 140 years of history and currently insures more than 3 million members.
Informations of Canada Protection Plan Company
- Founded: 1992
- Headquarter: Toronto, Canada
- Expansion: In 2019, expanded into Quebec as Plan de Protection du Canada
- AM Best Rating: A+ (Excellent)
- Assets: $2.6 billion
- Annual Premiums: $1.3 billion
- Website: www.cpp.ca
(Source: Wikipedia )
Who Is Canada Protection Plan Best Suited For?
CPP’s lineup of simplified issue products is designed for multiple segments of higher-risk life insurance consumers, including:
- Older adults age 50 and above
- Applicants with pre-existing health conditions
- Those previously declined coverage by other providers
- Individuals who wish to avoid invasive medical underwriting
- People engaged in high-risk occupations or extreme sports
For relatively young and healthy adults under age 50, CPP may offer less affordable premium rates than fully medically underwritten policies from other leading life insurance companies.
What types of life insurance does Canada Protection Plan offer?
CPP provides both term and permanent life insurance coverage on a simplified issue basis without the need for medical exams. Let’s explore the key options available.
CPP Term Life Insurance
Term life insurance supplies temporary coverage for a set period, such as 10 year term life insurance, 20 year term life insurance, or 30 year term life insurance. CPP’s term life plans provide access to death benefits up to $1 million without undergoing medical tests.
There are five main CPP term life insurance products:
- Deferred Elite Term: Up to $350K coverage for higher-risk applicants previously declined
- Simplified Elite Term: Up to $500K for those in relatively good health
- Preferred Term: Up to $1M for healthy applicants wanting fast coverage
- Express Elite Term: Up to $750K (ages 18-50) with critical illness insurance pre-approval
- Preferred Elite Term: Up to $1M for very healthy applicants
Premiums are guaranteed level for the policy term length. All CPP term plans can convert to permanent coverage until age 70.
CPP Permanent Life Insurance
In addition to term life insurance, Canada Protection Plan offers permanent life insurance. This coverage lasts your entire lifetime as long as premiums are paid.
CPP’s permanent life insurance options include:
- Guaranteed Acceptance Life: Up to $50K coverage for hard-to-insure applicants
- Deferred Life: Up to $75K for those with health conditions previously declined
- Deferred Elite Life: Up to $350K for less serious health issues
- Simplified Elite Life: Up to $500K for applicants in average health
- Preferred Life: Up to $1M for individuals in good health
These permanent policies build cash value that you can borrow against or withdraw. However, maximum death benefit amounts are lower than traditional permanent life insurance.
Other Insurance Offerings from Canada Protection Plan
Along with life insurance coverage, CPP also provides:
- Critical illness insurance: Up to $50K for heart disease, cancer, and other conditions
- Travel medical insurance: For unexpected healthcare costs while abroad
- Visitors to Canada insurance: Emergency medical for visiting Canada
- Health and dental insurance: Extra medical and dental protection
CPP No Medical Life Insurance Costs
As a no-medical life insurer designed for higher-risk applicants, CPP’s rates are generally higher than fully underwritten policies from other insurance companies.
However, CPP uses a streamlined application to match applicants to the best product tier based on their health profile. The healthier you are, the lower your policy premium will be.
To illustrate costs, here are sample monthly premiums for a 20-year term policy with a $500,000 death benefit for a 45-year-old male non-smoker:
| CPP Products | Monthly Premium |
| Simplified Elite Term | $132.75 |
| Preferred Term | $114.15 |
| Preferred Elite Term | $89.10 |
So, while CPP is more expensive than some competitors, it provides accessible coverage tailored to your specific health needs. CPP can offer affordable options for higher-risk applicants when regular insurers won’t.
Pros and Cons of Choosing the Canada Protection Plan
There are several advantages to choosing Canada Protection Plan for your life insurance needs:
Pros of CPP
- Accessible coverage for higher-risk applicants often declined elsewhere
- No medical exam or APS required for fastest approval
- Available to non-citizens and temporary residents of Canada
- Potentially more budget-friendly than “rated” policies from other insurers
- Ability to convert term policies to permanent insurance later on
Cons of CPP
- Generally pricier compared to fully medically underwritten life insurance
- Maximum $1 million death benefit available
- Coverage expires at age 80, earlier than some competitor’s products
- Limited selection of insurance products compared to other insurers
Who Is Canada’s Protection Plan a Good Fit For?
Canada Protection Plan can be an excellent choice if you:
- Have been declined life insurance in the past due to health
- Want to avoid undergoing medical underwriting screenings
- Engage in high-risk hobbies like scuba diving or hang gliding
- Have a significant health condition but need life insurance protection
- Are over age 50 and want a quick and easy application process
On the other hand, for the average healthy adult under age 50, traditional fully underwritten term life insurance policies remain the better value in most situations.
Canada Protection Plan Customer Feedback Overview
As is the case with many insurance providers, policyholder reviews of the Canada Protection Plan are mixed. Positive CPP testimonials praise the simplified application process, affordable premiums for higher-risk applicants, and great customer service.
However, some negative Canada Protection Plan reviews cite a need for more pricing transparency, difficulty cancelling policies or getting claims paid, and poor customer service response times.
As with any significant financial decision, it is wise to compare quotes from multiple top-rated life insurers rather than rely solely on reviews. Focus on finding the best value for your specific situation.
Canada Protection Plan Application Process
Applying for coverage through Canada Protection Plan is straightforward. The entire application can be completed online or over the phone in a matter of minutes.
You’ll answer a series of yes or no health history questions to determine which risk tier you qualify for. No medical exam or APS is required.
Once approved, your CPP life insurance coverage starts immediately. After issuance, policy documents can be accessed digitally through CPP’s online customer portal.
Should You Consider the Canada Protection Plan?
Canada Protection Plan offers a practical option if you have existing health conditions or want to avoid the hassle of medical underwriting. For many higher-risk applicants, no exam life insurance policies can provide invaluable peace of mind.
However, CPP may not necessarily represent the right choice for every individual. Healthy consumers under age 50 can often secure much more affordable premium rates through fully medically underwritten policies from leading insurance companies.
We strongly recommend comparing personalized quotes from multiple top Canadian life insurers before deciding on the best coverage for your needs and budget. Consulting with an independent life insurance broker can help ensure you find the optimal policy.
Is Canada Protection Plan Worth It?
Canada Protection Plan specializes in simplified-issue life insurance designed for higher-risk applicants who have often declined coverage elsewhere. Their no-medical-exam policies provide accessible coverage when traditional life insurers won’t approve you.
While CPP’s premiums are generally pricier, their streamlined non-medical underwriting process and variety of term and permanent plans make them a solid option worth considering if you have health issues or want to avoid extensive medical exams and paperwork.
However, for most young and healthy Canadian adults under age 50, a fully underwritten term or permanent life policy from a leading national insurer remains a superior value in most circumstances.
Comparing Canada Protection Plan to Top Life Insurance Competitors
Sun Life is one of Canada’s biggest fully underwritten life insurance providers.
Comparison of $1,000,000, 20-year term life premiums:
| Applicant | CPP Preferred Term | Sun Life* |
|---|---|---|
| 35, male, non-smoker | $142.05/month | $102.19/month |
| 35, female, non-smoker | $105.30/month | $63.78/month |
*Sun Life rates based on Preferred Plus underwritten policy
Key Differences:
- CPP simplified issue: no medical underwriting
- Sun Life requires a medical exam
- CPP coverage ends at 80, Sun Life at 85
- Both offer up to $1M coverage
- Sun Life is cheaper for healthy applicants
- Sun Life has more comprehensive range of products
The Bottom Line
Canada Protection Plan is dedicated to making life insurance accessible, especially for higher risk applicants. Their no medical exam policies offer coverage when traditional insurers won’t approve you.
While CPP premiums are generally higher, their streamlined application process and variety of term and permanent plans make them an option worth considering if you have health issues or want to avoid underwriting.
For most young, healthy adults, fully underwritten life insurance remains a better value. But CPP fills an important niche for older or higher-risk Canadians who want dependable life insurance protection.
Last but not least, we have other reviews for the top life insurance companies in Canada available on Best Insurance Online if you’re interested, such as Sun Life, Manulife, RBC , iA Financial Group, BMO life insurance, etc
FAQs of CPP life insurance
How much does life insurance cost from the Canada Protection Plan?
As a non-medical insurer, CPP's rates are generally higher than those of fully underwritten policies. However, they use a streamlined application to match applicants to the best product based on health. Sample monthly rates for a 45-year-old male with $500K coverage and a 20-year term are Simplified Elite $132.75, Preferred $114.15, and Preferred Elite $89.10.
What benefits do Canada Protection Plan life insurance policies provide?
Benefits include discounted rates for higher-risk applicants, no medical exam for quick coverage, the ability to convert term policies to permanent insurance, access to Forester's membership perks, and optional riders like accidental death, child term, and guaranteed insurability.
Does Canada Protection Plan require a medical exam for life insurance?
No, CPP does not require medical exams or tests for any of its simplified-issue life insurance products. Applicants only need to answer some health questions on the application.
Is the Canada Protection Plan legit and reputable?
Yes, CPP is a legitimate life insurance company founded in 1992. Its products are backed by Foresters Financial, an established insurer with over 140 years of history. In 2018, CPP paid out 98% of non-contestable life insurance claims.
What age can you get life insurance until with Canada Protection Plan?
CPP's life insurance coverage lasts until age 80 for most policies, which is shorter than some competitors' coverage to age 85. Their policies are typically renewable until age 80 and convertible to permanent plans until age 70.
Can Canada Protection Plan deny your life insurance application?
Yes, CPP can deny your application based on your answers to the health history questions. However, they offer policies tailored to higher risk and previously declined applicants to provide more accessible coverage.
Does Canada Protection Plan life insurance cover pre-existing conditions?
CPP's no medical insurance policies provide coverage without considering pre-existing conditions. However, some permanent plans have a two year exclusion period for non-accidental death related to pre-existing conditions.
Is Canada Protection Plan the cheapest life insurance company?
No, CPP is not the cheapest overall since it specializes in higher-risk no-medical insurance. Applicants under 50 who are in good health can find more affordable rates with fully underwritten policies from other top Canadian life insurers.
Does Canada Protection Plan offer whole life insurance?
No, Canada Protection Plan does not offer traditional whole life insurance. However, they offer permanent life insurance products such as Deferred Elite Life, Simplified Elite Life, and Preferred Life. These provide lifetime coverage with cash value accumulation.
Is Canada Protection Plan life insurance renewable?
Yes, most Canada Protection Plan term life policies are guaranteed renewable until age 80 or to the end of the term at ages 70-80. Their permanent life insurance plans are renewable for life as long as premiums are paid.
How long does it take to get approved with Canada Protection Plan?
Approval with Canada Protection Plan can be speedy, even within 24 hours in some cases. Their streamlined application only requires answering health questions without medical exams or tests.
Can I get Canada Protection Plan life insurance if I smoke?
Yes, Canada Protection Plan's no medical underwriting approach means they offer policies to smokers. Rates will be higher compared to non-smokers based on the increased health risks.
Does Canada Protection Plan cancel policies for missed payments?
The Canada Protection Plan has a 31-day grace period after a missed premium payment. If the overdue premium is not paid within that period, the policy can lapse, and coverage will end.
Can I get life insurance from Canada Protection Plan if I have diabetes?
Yes, Canada Protection Plan specializes in offering no-medical life insurance to applicants with conditions like diabetes that make coverage difficult with traditional underwriting.
Is Canada Protection Plan affiliated with any life insurance companies?
Foresters Life Insurance Company underwrites Canada Protection Plan's life insurance products. CPP is not directly affiliated with any other insurance carriers.
