On Monday, Assumption Life updated one of its core flagship insurance products – their FlexTerm plan. The changes are notable in a sense that it brings what Assumption Life has always done best (providing better options to Canadians with few) with what everyone wants to see – more for you and less for them.
This plan had some difficulties in the past – so a here-and-now is in order.
FlexTerm At a Glance
A term life insurance plan, Assumption Life offers a little bit more than its competitors with a couple unique benefits:
- Terms are available in 15, 20, and 25 years.
- Built-in Disability Coverage available up to $3,000 in monthly income.
- Critical Illness benefits of up to $25,000 included.
- No Medical Exam for amounts less than $250,000 in coverage.
Assumption Life’s big draw for clients across Canada has been the inclusion of No Medical Exam for lesser amounts, which makes it highly attractive to people who either want to or need to avoid a medical exam to avoid a rating or a decline.
The trade-off for this policy? FlexTerm has been, in the past, rather an expensive product, working out to about 25% higher premiums than its competitors on average. And while that’s still within reason for those with health issues, an overall higher cost and rather unconventional term lengths has made FlexTerm a hard placement for those looking for more affordable options.
New Changes to the Plan
So on Monday, Assumption Life has made some significant changes to the overall scheme of FlexTerm, making it a much more conventional product for your average consumer:
- Term 10, 25 and 30 have been added, encompassing the most common (and most effective) plan lengths.
- Rates are going down – FlexTerm still isn’t the cheapest plan around, but it’s much more in line with the competition.
- Inclusion of a joint first-to-die option gives it a better low-cost accommodation for couples.
- Inclusion of a child’s insurance rider which can offer a useful alternative to Assumption Life’s ParPlus Junior plan.
By making FlexTerm cheaper and considerably more flexible, Assumption Life can offer what was previously a bit of a niche product to a broader audience – while keeping all the perks that made them an attractive choice in the first place.
Is FlexTerm Right For You?
With all its changes, Assumption Life has made FlexTerm a strong candidate for short term financial protection. Of note, it is a particularly good plan in the following cases:
- Your health is good enough to pass a rigorous questionnaire but you’re concerned about what could show up on an exam.
- You’re looking for a full-suite of protection but your primary concern is still life insurance.
- You and your spouse need to or want to avoid an exam – FlexTerm is one of the only products in Canada with joint coverage with no medical.
However there are cases when you may want to look elsewhere:
- If cost is still a major concern – FlexTerm may be much cheaper than it once was, but it’s not the most competitive plan.
- If you’re looking strictly for mortgage coverage – Assumption Life’s FlexOptions may be a cheaper and better fit for that.
- If your health or lifestyle would still risk a significant rating – the lack of a medical exam doesn’t mean the application’s health questions are any less stringent.
Assumption Life’s efforts to brand themselves as the inclusive and the unobtrusive mutual insurer have definitely paid off over the last few years. A wide selection of products with No Medical Exam has always been their strength, and a lessening of price and increase in options definitely makes their plans a lot more palatable to your average buyer. Just be careful to always consider the cost and ensure the benefits are right for you.