In early April, Canada Life decreased pricing for its permanent critical illness insurance products.Canada Life sought to enhance its position relative to its main competitors, Sun Life Financial and Industrial Alliance. This repositioning is especially good news for the bracket of insured aged 18 to 49 and for policies sold with a return of premium rider.
The insurer is applying average decreases compared with the rates in force in critical illness in November 2012. The price of the level premium at age 75 product (Term 75) is 7% lower when it includes the return of premium at withdrawal or maturity and 5% lower for the return of premium at maturity. The price of Term 75 payable at age 65 is down 5% without return of premium and 10% with return at maturity.
The price of the permanent product (Term 100) was trimmed by 2% without return of premium and 12% with return of premium at withdrawal. The price of the Term 100 payable in 15 years drops by 6% without return and by 12% with return at withdrawal.
Term 10 products are also affected. The price of Term 10 renewable to age 75 and convertible at age 65 is 7% lower when it comes with a return of premium at withdrawal or maturity and 5% for return of premium at maturity only.