Canada Protection Plan Review (2021 Update)

It’s a new year and many companies have made some massive changes to their plans. Which brings us to the question, how does Canada Protection Plan stack up in 2021?

Canada Protection Plan remains to be one of Hand’s top providers in Guaranteed Life Insurance plans. This is perfect for people who are “hard to insure. Whether you have been declined before or have other health concerns CPP may be one company you want to look at. 

Guaranteed coverage can be very attractive because you can NOT be turned down. However, that does not mean it’s the best plan for you. As always when it comes to life insurance, if you are in good health, you should get medically underwritten. Yes, your policy will take longer to be approved but it is well worth it when you pay less for the same amount of coverage you would receive from guaranteed coverages. 

First, we should understand what is meant by non-medically underwritten policies. This means you will not have to perform any blood work, urine, or saliva tests. However, you may still have to answer medical questions to get your coverage approved.

CPP has several different options for hard to insurance clients, depending on your needs, they have plenty of options even if you have been turned downed or declined by other insurance providers.

Deferred Elite Term Coverage

 Pros 

• Perfect for the hardest to insurance, if you have a series of health conditions or those who have recently been declined.
• Coverage up to $350,000
• Term options that range from 10, and 20 years plans
• No medicals required to be approved 

Cons 

• Deferred Elite Term has a 2-year deferral period. This means if you were to pass away in the first 2 years, your beneficiary would only receive the amount you have paid into your policy. Not the full death benefit you applied for. Because this coverage is for people with severe medical conditions you can understand that this is the insurance companies way to reduce their risk. 

Preferred Term

• For applicants who are in good health already, maybe have some health concerns. 
• Non-medical process
• Coverage up to $1,000,000 
• Coverage periods range from 10, 20, and 25-year terms 
• No waiting period coverage starts immediately 
• Renewable to age 70 

Cons 

• There are other providers who offer coverage renewal past age 70 and even life pays. 

Preferred Elite Term 

• For anyone in very good health 
• Plans are fully underwritten but more affordable 
• Coverage up to $1,000,000 
• Term 10, 20, 25 options 
• No waiting period like the deferred elite term coverage

Cons 

• Compared to other plans on the market, you will likely find more affordable options. 

Moving into 2021, CPP still has a place in the market. Based on 2020 however, they have more competition and will be forced to stay competitive especially if they want to remain as one of the top non-medical providers.