Foresters shortens look-back period for cancer, heart conditions

Foresters Financial has shortened its look-back period for cancer and heart conditions for its A-Z Life Coverage, which offers up to $500,000 in face value with no medical exam, the insurer announced Tuesday.

The look-back period for most cancers was halved to five years from 10 and the look-back period for heart conditions was shortened to three years from four. The look-back period for other conditions such as liver disease, pancreatitis and epilepsy were also reduced.

“There are no changes to the coverage limits. However, with shorter look-back periods, some clients may now qualify for plans with higher coverage amounts,” Michael Aziz, chief distribution officer at Foresters Financial in Canada, said in an email.

The application process won’t ask for an attending physician’s statement, medical exams or past ratings or postponement. Term coverage is available until age 70 and permanent coverage until age 80.

While this product has limited face value, mainstream insurers like Sun Life and Manulife have started to consider applications from cancer survivors in recent years. Clients could even get standard ratings depending on factors like cancer type and stability period.

When working with clients who survived cancer, life agents should ask for details such as the type and stage of cancer, the treatment received, when treatment was completed and whether there are ongoing concerns, experts said.

Agents should also ask about the client’s premium tolerance early in the conversation. If the offer comes back rated, agents should gauge whether the client can pay the higher premium or would prefer to take a lower face amount.

Clients can consider guaranteed issue and no-medical products as a last resort.

Jonathan Got

Jonathan Got is a reporter with Advisor.ca and its sister publication, Investment Executive. Reach him at jonathan@newcom.ca.