Insurer shakes up term life product

An Insurer has thrown down the gauntlet in the battle for market share, shaking industry premiums on term life coverage

One insurer has reduced rates and added features to its term life portfolio, in a bold move to take a bigger slice of the life pie.

“Our new refreshed term portfolio offers greater value to our clients at very competitive rates,” said Rob Baboth, vice president of sales, Foresters Canada. “The additional value of Foresters member benefits makes for a winning combination that is unique in the Canadian marketplace.”

Most of Foresters term insurance rates have been reduced for Term 10 and Term 20 at face amounts of $250,000 or more, and in some cases rates have been reduced as much as 10%.

That could set the stage for an industry race to lower premiums even as term life faces renewed competition from mortgage creditor insurance stemming from the busy housing market.

Foresters and others are extending competition beyond rate. It, for example, has also introduced a new Term 30 spousal rider with a Term 30 base plan, and has made it easier for policyholders to extend the length of their coverage - Foresters Term 30 will now renew for five-year terms after the initial 30 year term.

Another advantage that has been introduced to match customers’ changing needs is more flexible conversion and exchange privileges. Term insurance policies can now be converted in part to a permanent life insurance policy and in part to a term rider, without supplying evidence of insurability.