Following an announcement made May 29, Assuris coverage in place for policies bought through Assuris member life and health insurance companies are eligible for higher levels of policy holder protection, effective immediately.
“Assuris’ mission is to protect Canadian policyholders if their life and health insurance company fails,” the not-for-profit entity states in its announcement about the changes. Going forward, up to $1-million in death benefits, or 90 per cent of the death benefit – whichever is higher – is covered by Assuris protection in the event the company issuing the policy fails. Health expenses are covered up to $250,000 or 90 per cent, monthly income is covered up to $5,000 per month or 90 per cent of the stated benefits and up to $100,000 or 90 per cent of the guaranteed amount in cash values, accumulated value or segregated fund guarantees are covered by Assuris protection.
The 90 per cent figure is up from 85 per cent prior to the announcement. In an example, the organization points out that a $750,000 benefit will be fully covered – up to $1-million. For a benefit worth $1.5-million, however, Assuris would provide $1.35-million in coverage or 90 per cent. The coverage extends to life insurance policies, health insurance, annuities, retirement income and wealth management products.
“Assuris is confident that this enhanced policyholder protection strengthens public confidence in the industry.”
