Worried Your Canadian Life Insurance Company May go Bankrupt
You may think this never happens, but in the last several years it has happened a number of times. We have seen AIG get acquired by BMO Insurance, and in the last year a 100-year-old company, known as Union of Canada, filed for bankruptcy. What does this mean to the customer who purchased a policy from the bankrupt carrier? The answer—insurance companies have insurance!
It’s called Assuris. Founded in 1990, this not-for-profit organization protects Canadian policyholders in the event that their life insurance company goes bankrupt.
Below is a snapshot summary of how Assuris protects Canadian policyholders if a member insurance company becomes insolvent. Visit the website of Assuris, to find out if your insurance company is a member of Assuris, or, ask your broker!
Snapshot Summary
Life Insurance death benefits up to $200,000 or 85% of the promised Death Benefit
Life Insurance cash values up to $60,000 or 85% of the Cash Value, whichever is higher
Critical Illness benefits up to $60,000 or 85% of the promised benefits, whichever is higher
Disability Insurance benefits up to $2,000 per month or 85% of the promised Monthly Income benefit, whichever is higher.
Long Term Care benefits up to $2,000 per month or 85% of the promised Monthly Income benefit, whichever is higher