What happens if My Life Insurance Company goes bankrupt?

People tend to ask me this question once we finish filling out the life insurance application, well; the answer is Assuris protects your Life Insurance.

Principles of Assuris’ Protection

Assuris protects policyholders by minimizing the loss of benefits and ensuring a quick transfer of their policies to another solvent insurance company.  The policyholders protected benefits will continue to be honored by the new company.  The transfer is done directly and therefore Policyholders do not need to file a claim with Assuris.

Assuris Members

Every life insurance company that sells insurance policies in Canada is required, by the federal, provincial and territorial regulators, to become a member of Assuris.  You can find a complete list of their members on their website.  Assuris’ protection only applies to the benefits of the products issued by a member’s company.

Assuris Protection

If a life insurance company fails, Assuris transfers the policies to a solvent company.  Assuris guarantees that policyholders will retain at least 85% of their insurance benefits.  Insurance benefits include Death Benefits, Health Expenses, Monthly Income and Cash Values.

Deposit type products like annuities, universal life overflow accounts and dividend deposit accounts are also transferred to a solvent company.  These products are guaranteed for 100% of their Accumulated Value up to $100,000. 

Protection Limits:

Benefits                                               Assuris Protection

Death Benefits                                  $200,000                                              or 85% of promised

Health Expense                                                $60,000                                 benefits, whichever

Monthly Income                              $2000/month                                     is higher

Cash Value                                          $60,000

Benefits Protected:

Life Insurance, Critical Illness, Health Expense, Disability Income, Long Term Care, Annuities, GMWBs, and deposit type products such as Accumulation Annuities and TFSA.  Assuris also protects guaranteed amounts under individual segregated fund policies.

If you have more than one policy with the failed company, all similar benefits are added together before Assuris’ protection is applied.  Assuris provide separate protection for individual, group, registered and non-registered benefits, individual TFSA and group TFSAs.

If you have any questions or would like more information visit www.assuris.ca or give me a call.

Have a great weekend,

Tracey

Source:  Assuris.ca