Canada Life has decided to re-enter the onshore individual term and critical illness markets after pulling out nearly 10 years ago.
Canada Life already offers the CanProtect Whole of Life Plan to UK and non-UK domiciled individuals through Canada Life International.
The company’s new onshore CanProtect products consist of level and decreasing term life insurance policies with the option on both products for accelerated critical illness cover.
Nick Harding, propositions and marketing director for distribution at Canada Life, said: “We have a responsibility to offer much more than just financial support and provide policyholders with access to a raft of high-quality services, both pre and post claim.
“Insuring around 2.75m people in our group insurance business, we have leveraged our established relationships with additional services partners to provide significant support to individuals we insure, and their family members or loved ones, when they have a significant change in their life circumstances.”
The additional benefits of the policies include a medical treatment sourcing service and bereavement and probate line for term assurance customers.
Those who opt for the critical illness product will also get a personal care assistance programme supported by an online health risk assessment tool and a second medical opinion service.
Canada Life will be partnering with the UnderwriteMe comparison service to provide straight-through processing so individuals can be covered immediately.
In August, figures published by the Association of British Insurers revealed that a total of £3.44bn was paid in 2014 to 128,500 customers or families. This was a rise from £3.08bn in the previous year, which helped 98,900 people after death, illness or inability to work.
The data also revealed that the average individual income protection policy payout lasted 204 weeks, and was worth £39,200, and 92.9 per cent of claims were paid out.
The average payout in 2014 for critical illness was £67,000 and total permanent disability claims averaged £73,200 with 64.1 per cent paid out in 2014.
Adviser view
Julian Barnard, principal of London-based Barnard Lee & Associates, said: “It is a good thing to have more competition in the insurance market. More competition drives prices down, which is great for the end consumer. However, I have mixed feelings about Canada Life. I like its offshore propositions so if the quality of its onshore products matches that, then this return to individual protection will be a good thing.”
Peter Chadborn, director of Essex-based Plan Money, said: “It is encouraging to see a new entrant into the protection market, bearing in mind that this has been a contracting market, and Canada Life is a respected name in the group market.”
