What is CPP Insurance & Is It the Same Company as the Canadian Pension Plan?
There is a lot of confusion around CPP Insurance and the Canadian Pension Plan. So I want to write an article to comb through all the details.
CPP Insurance is Canada PROTECTION Plan or Plan de Protection du Canada if you live in Quebec. It’s a small life insurance company that specializes in simplified issue no medical exam policies.
They developed a suite of products to give clients choices that were otherwise unavailable in this niche.
In 2006, CPP Insurance expanded its offerings into simplified issue term insurance coverage too!
To clarify, the Canadian Pension Plan is another organization altogether and the two are simply not connected.
Who Am I & Why Do I Care?
Before we get into the meat and potatoes of this article I would like to introduce myself! My name is James Heidebrecht and I am the founder of Policy Architects.
As a Dad, Husband, and Policyholder I am well aware of the worries that drive people to this site. What would happen if my – or your income – suddenly stopped…
…never to return.
Well now that would completely send my loved ones into a financial tailspin and it’s likely they would never recover from it.
I have coverage that keeps this unfortunate situation forever occurring. Sure death sucks especially when it’s unexpected.
BUT at least I know that my family will have the time and resources to recover.
This is where life insurance comes in.
So Back to the Difference Between CPP Insurance and the Canadian Protection Plan
So, in reality, there is no comparison at all between these two entities – yet they are confused all the time on the web.
CPP insurance offers no medical exam life insurance options for Canadians, including simplified issue whole life and term coverage.
They are well known in the no medical market niche and have great options for consumers who have health issues that make traditional permanent and term coverage unaccesssible.
CPP insurance specializes in plans that do NOT require any physical or medical exams. Of course, this means you will likely spend more than the traditional applicant. Why? If you don’t take part in a medical exam, the life insurance company has less information to veryify your health status with.
Which means you are more of a risk to insure – which translates into higher monthly payments.
That being said it works like a charm for people who are older looking for a small funeral insurance policy to cover their final expenses.
If you want more information about Canada Protection Plan, click below for a full review!
Fortunately, that was the past! Today, we live in a world in which almost anyone can get life insurance in just a few days, without all that hassle. This kind of life insurance, no exam life insurance, was designed for exactly this purpose. No exam life insurance allows you to apply for insurance online, skip the medical exam, and get an answer in a few days or weeks, not months.
So What is the Canada Pension Plan (CPP)?
The Canada Pension Plan (CPP) or the Régime de pensions du Canada a mandatory federal pension program that benefits all Canadians when they retire. With the exception of Quebecers, all Canadians over the age of 18 must contribute in to the CPP during their working years. When they retire, they are eligible to receive a monthly benefit that replaces part of their income for life.
The Canada Pension Plan Investment Board invests the assets of the CPP on behalf of Canadian citizens. It is one of the largest investment funds in the world with assets totalling over $400 billion. In contrast, CPP Insurance’s annual revenues are estimated to be approximately $1-4 million.
So as you can see, the Canada Pension Plan has nothing to do with life insurance or Canada Protection Plan.
Unfortunately, a lot of clients get these terms confused. I have a feeling the company name was created to capitalize on that confusion. After all, it doesn’t hurt to have the stability and history of the Canada Pension Plan associated with you, especially when you’re a very young life insurance company.
Give Policy Architects a Call Today If You Want to Know if CPP Insurance is the Company for YOU!
CPP Insurance is a GREAT no medical life insurance company.
The thing is not all life insurance companies are created equal. If you want to see if Canada Protection Plan is the RIGHT insurer for you then give Policy Architects a call today.
We can help you go through all the options to make sure it’s the right pick for your particular circumstances.
At the end of the day selecting the right company could result in saving thousands over the term of your policy.
…and PS – never confuse the Canada Pension Plan with CPP Insurance. They are VERY different organizations!