Canadian Life Insurance Products Protected Through Assuris

Assuris protects your investment into life and health insurance

Did you know that when you buy a personal life or health insurance policy in Canada that the insurance company you bought it from is “insured” by Assuris in case it goes bankrupt. Assuris is a non-profit organization funded by the life insurance industry to protect Canadian policyholders. One of the greatest fears of policy holders and investors today is that the financial institution they are giving their money to, like an insurance company, will go bankrupt and leave them with nothing.

The Federal Government of Canada has put in place legislation to protect Canadians’ investment into life and health insurance products. Policy holders and investors would be left with nothing to show for their many years of paying premiums and investments and lose their life and health insurance policies if an insurance company went bankrupt. In 1990 Assuris was founded under the Insurance Companies Act of Canada and designated by the federal Minister of Finance.

The role of Assuris is to minimize the loss of benefits a Canadian policy holder might face if their life insurance company went bankrupt and to ensure a quick transfer of their policies to a solvent Canadian life insurance company, honouring the protected benefits of policyholder (as described below).

Assuris Member Companies

Every life insurance company in Canada authorized to sell life and health insurance policies is required by federal, provincial and territorial regulations to become a member of Assuris.

Assuris maintains a liquidity fund of at least $100 million to provide the cash need to help transition life and health insurance policies from an insolvent life insurance company to a solvent company. If a Canadian life insurance company was to fail, Assuris has the power to assess other Members and raise additional funds to cover the cost of providing Assuris protection to Canadian policyholders. In effect, Assuris has the power to raise money from all Canadian life insurance companies if one of the Member companies fails, and use that money to provide the guarantees it promises to all Canadian policyholders.

Assuris Protection for you Life & Health Insurance Policies

If you’re a Canadian citizen or resident and purchased a life insurance policy from a Canadian life insurance company (all of which are Member Companies of Assuris), you are protected by Assuris. Assuris guarantees that, upon transferring your policy to a solvent life insurance member company, the benefits will be maintained as described below. Click here to download the Assuris protection brochure for Canadian policyholders.

Assuris protection for Life Insurance

Death benefit guarantee (all life insurance policies): you will retain up to $200,000 or 85% of your promised Death Benefit, whichever is higher.

Cash value guarantee(Universal Life and Whole Life policies): you will retain up to $60,000 or 85% of the Cash Value of your policy, whichever is higher.

For Whole Life Insurance, upon transfer of your whole life policy to a solvent company, dividends on your policy will continue to be paid, however the level of expected dividends may be adjusted.

Assuris protection for Critical Illness Insurance

Critical illness cash payout guarantee: you will retain up to $60,000 or 85% of the promised critical illness benefit, whichever is higher.

Assuris protection for Disability Insurance

Disability income benefit guarantee: you will retain up to $2,000 per month or 85% of the promised Monthly Income benefit, whichever is higher.

Assuris protection for Long Term Care Insurance

Long term care income benefit guarantee: you will retain up to $2,000 per month or 85% of the promised Monthly Income benefit, whichever is higher.

Assuris protection for Annuities

Payout annuity income guarantee: you will retain up to $2,000 per month or 85% of the promised Monthly Income benefit, whichever is higher.

Assuris protection for Segregated Funds

Segregated fund protection of guaranteed amounts: you will retain up to $60,000 or 85% of the guaranteed amounts*, whichever is higher.

* The “guaranteed amounts” refer to the maturity guarantee of the segregated fund contract. If you had a 75% guarantee of principle invested, and you deposited $100,000, your guaranteed amount would be $75,000. Assuris would then protect up to $60,000 or 85% of the guaranteed amount. In this case Assuris would apply the 85% rule to the $75,000 of guaranteed cash value at maturity of the segregated fund, and you would have $63,750 guaranteed by Assuris.

Assuris will also apply the same level of guarantees to group insurance policies sponsored by a company for the benefit of its employees.

Life Guard Insurance sells insurance policies protected by Assuris

All the life and health insurance policies sold by Life Guard Insurance are protected by Assuris because all the life insurance companies we are contracted with are all Member Companies of Assuris. Feel secure that your investment into life and health insurance is guaranteed by Assuris.

To insure you are protected by Assuris please check your policy is underwriten by a member company of Aussris: visit their Member List.

The article was written by +Mitch Reynolds. If you found this article interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this article about Assuris protection for your life insurance products would be very much appreciated.

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