Aug 07 2012

Assuris – Protecting Your Life Insurance Benefits

Assuris – Protecting Your Life Insurance Benefits

life insurance product benefit protection

Protecting Benefits

Assuris is the not-for-profit corporation that protects Canadian policyholders against loss of benefits due to the financial failure of a member company. All life insurance companies authorized to sell insurance policies in Canada are required, by the federal, provincial and territorial regulators, to become members. Think of it like CDIC insurance that exists to cover deposit products such as a bank account or GIC in the event a bank were to fail.

Assuris is wide ranging and covers life Insurance products including the following.

  • life insurance
  • critical illness
  • disability insurance
  • health expenses – like travel insurance
  • payout annuity
  • long term care
  • segregated funds (including GMWB – guaranteed minimum withdrawal benefits)
  • RRSP, RRIF, LIRA, LIF, TFSA
  • group retirement and group insurance

There are specific limits for each item but here is a couple examples.

Term Life Insurance

    • your Term Life policy will be transferred to a solvent company. Assuris guarantees that you will retain up to $200,000 or 85% of the promised Death Benefit, whichever is higher.

Guaranteed Minimum Withdrawal Benefit (GMWB)

    • In the Saving Phase, Assuris guarantees that you will retain up to $60,000 or 85% of the promised Guaranteed Withdrawal Balance, whichever is higher. The Guaranteed Withdrawal Balance includes deposits, bonuses, resets and withdrawals prior to the insolvency date.
    • In the Payout Phase, Assuris guarantees that you will retain up to $2,000 per month or 85% of the promised Guaranteed Income Benefit, whichever is higher.

For more details, visit their website at www.assuris.ca.

You can also download the Assuris brochure.

While we would hope that we do not have a financial failure of a life insurance company, it give’s peace of mind that you would be protected, if it were to occur.  Please contact me if you have further questions.

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