Canada Protection Plan specializes in offering life insurance to people who would normally be denied coverage, whether that be due to age or a pre-existing health condition.
In fact, Canada Protection Plan makes a point of advertising that anyone between the ages of 18 and 80 can apply and have a good shot at getting coverage.
Typically, life insurance companies require you to undergo a medical exam (which involves a urine and blood sample) in order to qualify for a policy.
With simplified issue insurance — the type of insurance CPP offers, which is also known as no-medical insurance — all you need to do is fill out a form with an agent or broker to get coverage. No visit to the doctor required.
The premiums for simplified life insurance can be costly. But if you have a pre-existing medical condition, a regular life insurance company is going to charge a lot for coverage — if they accept your application at all.
In cases like that, simplified life insurance might be the better option.
Canada Protection Plan touts that its application process (which you can preview on its website) eliminates “long health declarations” and uses only “clearly worded medical terminology.” When you’re finished your application, according to Canada Protection Plan, you should have no doubt about what’s included and what’s excluded from the policy.
In 2016, Canada Protection Plan removed a question about whether applicants have been denied insurance within the last two years. The change means that even more prospective policyholders can access its simplified preferred products.
In 2019, it introduced the Express Elite Term Insurance and Preferred Elite Term Life Insurance policies. These policies, which are designed for people in good to excellent health, and are available for either 20 or 30-year terms, have an even shorter application process.
Canada Protection Plan says that coverage for some plans begins immediately after approval. The company says it paid out 98% of non-contestable claims in 2017. A claim is deemed non-contestable after the two-year window period has passed (if you die before the policy turns two, the insurance company will investigate your claim and may decide not to pay it out).