Company Review: Canada Protection Plan

Company Overview 

• 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 

Canada Protection Plan – established in 1992 – is a privately-owned Canadian insurance intermediary that provides simplified, no-medical life insurance and other related products. 

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

As a result, Canada Protection Plan policyholders are part of the Foresters benefit program, which grants access to unique member benefits offered by Foresters Financial, such as scholarships for children, emergency assistance programs, money management consultations and so on.

Today, Canada Protection Plan is proud to provide a wide range of offerings that makes it easier than ever for their customers to buy No Medical, Simplified Issue Life and Critical Illness Insurance.

Their mission is to provide life insurance protection for those with difficulty obtaining coverage because of health issues and those who are in good health conditions.

Ratings

Canada Protection Plan has an average good rating of 3.8 stars out of 5 on Google reviews. Even though common perception would think that anything lower than 4 stars is not worth checking out, there are not many providers who can boast a 3+ rating on Google in the insurance industry.

Seldom would we see a rating of 3 out of 5 stars for Canada Protection Plan, they do have many 4 to 5-star reviews. 

Products 

Canada Protection Plan offers 5 term life insurance products. Among those, preferred term policies are subject to underwriting and medical checks. 

• Deferred Elite Term 
• Simplified Elite Term
• Preferred Term 
• Express Elite Term
• Preferred Elite Term 

Besides, in terms of permanent life insurance, Canada Protection Plan offers 6 different products, namely: 

• Guaranteed Acceptance Life Insurance 
• Deferred Life Insurance 
• Deferred Elite Life Insurance 
• Simplified Elite Life Insurance 
• Preferred Life Insurance 
• Preferred Elite Life Insurance 

Other than the standard term and permanent life insurance, they also offer 4 Critical Illness insurance products: 

• Cardiac Protect CI 
• Cancer Protect CI 
• Cardiac and Cancer Protect CI 
• Cardiac or Cancer Protect CI

All of these products have less strict requirements for eligibility. If you qualify for Express Elite Term coverage, you are pre-approved for these products as well. Some other benefits are that: 

• Clients diagnosed with Heart Disease or Diabetes can get Cancer coverage
• Clients can now choose to get both Cardiac and Cancer coverage
• All four plans are No Medical

Coverage and Policy 

Available Term Lengths

Canada Protection Plan offers term periods of 10 to 25 years decreasing coverage. The provided coverage terms depend on both the chosen product and/or health condition of the applicant.

Available Term Types 

Canada Protection Plan’s life insurance is offered in both level and decreasing term plans. If you are aware of your financial obligations and their time periods, you can make use of decreasing premiums in a plan, such as the 25-year decreasing term plan. For example, decreasing term plans are great for mortgage protection.

Maximum Amount of Coverage: $1-million

Convertibility

Canada Protection Plan’s level term policies are renewable and provide coverage to applicants aged 80 and convertible to a permanent plan until policyholders reach 70.

Pricing

As Term Life Insurance is the most affordable option for most policyholders, we obtained quotes from Canada Protection Plan based on non-smokers in good health. $500,000 coverage, 20-year term, Simplified Elite as follows: 

Age	Male	Female
20	$76.95	$48.15
25	$77.40	$49.05
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
65	N/A	N/A

To compare Canada Protection Plan to its main competitor – Sun Life, we present two instances to prove that Canada Protection Plan’s pricing is a little more affordable than that of Sun Life.

Example 1: 40-year-old Male, Non-smoker, Regular Health, 20-Year Term:

Canada Protection Plan Insurance $400K – $46.44

Sun Life $400K – $50.13

Example 2: 60-year-old Female, Non-smoker, Regular Health, 20-Year Term:

Canada Protection Plan Insurance $250K – $167.85

Sun Life $250K – $168.07

Pros and cons 

Pros

Cons

* Quick and simple online application process. * Fast processing times; policy can be issued in as little as 48 hours. * All individuals, with or without health conditions, can qualify.  * No medical exams are required.  * Available to temporary residents (international students and temporary work permit holders.  * Many options for those who are harder to insure due to health issues or lifestyles.  * Accept credit cards for annual premium payments.  * If paying monthly, no premium payment for the first month of the policy. Premiums start in the second month. * All plans can be converted to permanent coverage until age 70.

* Without medical underwriting, its life insurance products can be more expensive, especially for applicants with generally good health.   * Coverage amounts are limited to $1 million. If more coverage is needed, you will need to either purchase an additional policy with another company or look at a different insurance company altogether. * Coverage is offered up until age 80, compared to age 85 for other companies.  Whole life insurance cash values are subpar compared to other insurance providers. * No dividend option for whole life insurance policies.

Application process

You will be required to answer a few medical questions about your health before being offered coverage in their application process. The concept is relatively straightforward: the more questions you answer without responding “yes,” the lower your rate will be for the coverage you seek.

This, however, does not mean that you should omit any health problems and give dishonest answers. Similar to any other insurance provider, false answers could render you uninsurable or make an insurance claim process extremely complicated.

Since Canada Protection Plan only has to review your medical questionnaire before granting you approval, their times are among the best in the insurance industry. It could take as little as 48 hours for you to be approved. 

Summary 

In brief, Canada Protection Plan is a viable backup plan for you if you get denied by your ideal insurer. Canada Protection Plan offers unique life insurance coverage products that are an excellent fit for many Canadian consumers who value the convenience offered by non-medical products. 

If you have a health condition that makes it challenging to qualify for a standard policy or do not want to take a medical test, Canada Protection Plan may be right for you. However, those in good health usually benefit more from other insurance providers.

We’re available to help you obtain more detailed quotes from Canada Protection Plan, and proceed to acquire a life insurance policy if you wish. You can contact us via here or call us directly: 1-877-611-6722 (toll free). There’s another option to use insurance brokerage service, Insurance Direct Canada is one of the most trusted insurance brokers in Canada.

Last but not least, we have other reviews for the top insurance companies in Canada available on Best Insurance Online if you’re interested, such as TD Life Insurance, Manulife, etc.