Canada Protection Plan Reviews! Are They the Insurer for YOU ?! We’ve Got the Goods!

…BUT before we go any farther, I want to tell you what I tell everyone who’s thinking about protecting their families or loved ones. Always get the advice of an experienced independent life insurance agent.

Policy Architects Agents know the ins and outs of the market and have in-depth knowledge of the products on offer. In a nutshell, we’re in the best position to help you find the right policy for the right price.  At Policy Architects we work for you NOT the insurance company. Our job is to shop the market and connect you with the life insurance carrier that will treat you most favourably.

When CPP insurance entered the market in 1992 it provided just one Non Medical niche product. Now it has a whole range of Simplified or Guaranteed Issue products.

These insurance policies are best suited for harder-to-insure individuals such as the elderly or people who are considered high-risk. If you’ve seen a Canada Protection Plan commercial, you know one of their target markets is term life insurance for senior citizens.

Canada Protection Plan life insurance is a privately owned corporation based in Toronto. It’s been in business for approximately 25 years which gives it a “newbie” status in life insurance circles. CPP’s annual revenues are somewhere between $1 – 4 M and it employes about 30 people. 

If we check in with the Better Business Bureau, CPP insurance has only one minor complaint. It was related to administration, within the last 3 years. Even better? They have no complaints at all so far this year.

Reviews from employees are mixed as well. This insurer maintains 2.9 stars out of 5 on Glassdoor. So maybe they aren’t the best employers. You can read what you want into this but this could definitely cause problems in customer service. 

So how much stock should you put into these Canada Protection Plan reviews? That’s a great question! It suffices to say reviews shouldn’t be the only factor you use when deciding on a potential insurer. In fact, I would say it’s low on the totem pole because of people’s penchant for grumbling. 

This company uses a lot of different names for their plans including CPP Guaranteed Acceptance, CPP Deferred,  CPP Deferred Elite, CPP Simplified Elite, CPP Preferred, CPP Preferred Elite and more recently, CPP Express Elite Term. 

Hmmm, it’s a little confusing but don’t let that scare you off! Their coverage options are pretty straightforward! Basically, they offer Permanent (Whole Life) or Term insurance (Simplified & traditional).

So let’s check our their Permanent & Term options now! 

Term life insurance is hands down the best option for most people 90% of the time. It is the most affordable coverage for those looking to protect their income and their mortgage. It offers temporary protection that is commonly purchased in 10-year, 20-year or 30-year blocks. For example, if you have a family with young children, you may want to secure a 20 or 30-year term so that you have substantial protection while your family is most financially vulnerable. During your term of coverage, your monthly cost is guaranteed to never-go-up and when the term ends, your coverage expires. So basically you’re buying insurance only for the window of time that you need it. 

Canada Protection Plan’s Express Elite Term is a new plan designed for consumers in excellent health who want their term coverage issued fast! Not only is the application process quick, but CPP insurance also claims that it has the best rates for no medical term coverage up to $500,000. The application can be completed in as little as 15 minutes and a policy issued within 72 hours!

• The maximum amount of protection is limited to $25,000
• There’s a 2-year waiting period. If death happens within the first 2 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 per month for $25,000 of insurance
• Builds up a small amount of Guaranteed cash value over time.

CPP or Plan De Protection Du Canada as known in Quebec has three critical illness plans available through Foresters life insurance company. One is a simplified-issue and the other two are traditional plans which require medical underwriting.

The general rule is that you’ll need to buy emergency medical or evacuation insurance when going out of the U.S., Rick Garlick, a hospitality and travel expert with Magid Associates, tells CNBC Make It. “Insurance is much more necessary on international versus domestic trips, particularly ones you have to plan far in advance,” he says. 4 Times You Can Skip Travel Insurance and 3 Times You Should Buy It, CNBC 

 “simplified issue products are miles ahead of the rate books used 20 years ago. This evolution has pushed the limits of acceptance…Simplified issue 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,

Which means if she goes with the CPP insurance quote, that’s a monthly savings of $24.46 or 15%! 

But what happens if her beneficiaries get a payout? Let’s assume for argument’s sake Sharon passes away when she’s 75 years old. She’s married, so her husband Bernard is paid out $25,000 tax-free! 

So let’s compare! 

• Canada Protection Plan: Sharon’s total cost of insurance over ten years is $18,456 ($153.38 per month x 12 months x 10 years).
• Industrial Alliance: Sharon’s total cost of insurance over ten years is $21,340 ($177.84 x 12 months x 10 years).

Her savings is: 

Now, this is pretty great! Who wants to spend more money than they have to?

What would you do with $2,884 of savings? 

NOTE: These policies are very similar but not identical! The Industrial life policy has higher cash surrender and paid-up values than the Canada Protection Plan example. Another reason to call Policy Architects. We have all the deets! 

As you can see CPP is slightly cheaper than Industrial Alliance, but not by much.  So here’s the rub. CPP Insurance will give him $500,000 in coverage! So how much will this cost?

• CPP Simplified Elite Life Term 20 policy with $500,000 of coverage will cost him $115.20/month

Doesn’t sound too shabby to me. CPP insurance comes out on top because their coverage maximum is 66% higher at $500,000. This is a win for CPP Insurance. 

Guaranteed or Simplified-Issue life insurance should always be your Plan B. Whenever possible, apply for traditional underwritten life insurance first before moving to no medical plan because it’s usually always more affordable. 

This is why it’s so important to talk to an independent life insurance agent like Policy Architects. Canada Protection Plan is a great non-medical life insurance provider which may or may not be the right choice for you. 

Give us a call, we can help!