Canada Protection Plan has launched a suite of no-medical critical illness that covers eight illnesses divided into two main categories: heart disease and cancer.
The launch expands the CI product line designed by the MGA and insured by Foresters Financial. It previously focused on life insurance products, most offered with no medical exam, including products for the hard to insure. The rollout of the new CI products, slated for March was delayed due to the COVID-19 crisis.
The product line reflects the MGA’s philosophy of providing insurance coverage with no medical exam. Clients who were turned down by other insurers may still obtain insurance from Canada Protection Plan.
Four products
The new lineup comprises four products: Cardiac Protect CI, for coverage in case of a cardiac-related incident, and Cancer Protect CI, for coverage in case of a covered cancer-related incident. The third product, Cardiac AND Cancer Protect CI, covers insured who experience one cardiac-related and one cancer-related incident. Insured with this coverage can make two claims for a maximum insurance amount of $50,000 per event. Lastly, Cardiac OR Cancer Protect CI provides protection in case of an incident linked to heart disease or cancer for a maximum of $100,000. For the fourth product, coverage ends after the first event.
The first three products (Cardiac Protect, Cancer Protect, and Cardiac AND Cancer) are aimed at clients ages 18 to 65, and offer one term (T75 up to age 75). The fourth product (Cardiac OR Cancer) is available as T20 for clients ages 18 to 55, or T75 for clients ages 18 to 65. Coverage is guaranteed on all four products until age 75. The Term 20 is renewable every 20 years until age 75.
Few illnesses but broad coverage
Of the eight conditions covered, five fall into the heart disease category: heart attack, stroke, aortic surgery, coronary artery bypass surgery, and heart valve replacement or repair. The other three are linked to cancer: cancer; aplastic anemia and benign brain tumours.
Michael Aziz, co-president of Canada Protection Plan, explained to Insurance Portal why the new products limit the illnesses covered. “Many products on the market cover 23 to 25 critical illnesses, yet 83% of claims arise from heart disease or cancer scenarios,” he says. He adds that the eight conditions covered account for 93% of claims filed due to heart disease or cancer. This means that insured are not paying for illnesses that rarely occur, he says.
An accessible product
Accessibility is key to the offering, Aziz adds. Clients who were diagnosed with cancer can buy the product that covers heart disease. Conversely, clients who have diabetes or high blood pressure, and who suffered from a stroke, transient ischemic attack or a heart attack, can buy the product that covers cancer.
“As long as the client’s health is stable and they answer no to two questions: one about HIV-AIDS and another on whether they have a condition that is under observation. We want to know, for example, the results of tests or x-rays before we can offer the product,” Aziz explains.
The line of insurance is fully available through the electronic process that covers all steps from application to policy issuance, Aziz adds. The product is also eligible under certain conditions for the preferred rates of the Express Elite series, starting from coverage of $25,000.
