As financial advisors, you are on the front line with policyholders. If a life insurance company fails, financial advisors need to provide reassurance to their clients and understand Assuris’ protection.
Assuris Protects Benefits
The key to Assuris' protection is that all similar benefits issued by the same life insurance company are added together before Assuris' protection is applied. The types of benefits are: Death Benefit, Health Expense, Monthly Income, Cash Value and Accumulated Value.
As an advisor, you can reassure your clients that Assuris protects all benefits under policies issued in Canada by a Member Company to a Canadian citizen or resident.
Transfer of Policies
Rather than cancelling the policy and paying cash compensation, Assuris protects policyholders by facilitating the transfer of policies to a solvent company and ensuring the continuity of covered benefits under the original terms of the policy.
If a life insurance company fails, Assuris guarantees that on transfer, policyholders will retain at least 85% of the promised insurance benefits. Insurance benefits include Death, Health Expense, Monthly Income and Cash Value.
Deposit type products will also be transferred to a solvent company. For these products, Assuris guarantees that policyholders will retain 100% of the Accumulated Value up to $100,000. Deposit type products include accumulation annuities, universal life overflow accounts and dividend deposit accounts.
For a Tax Free Savings Account (TFSA) invested in an Accumulation Annuity, Assuris provides separate protection from other deposit type products. For TFSAs, Assuris guarantees that policyholders will retain 100% of the Accumulated Value up to $100,000.
Click here for an Overview of Assuris' Protection by Benefit
Click here for the Steps to Determine Protection