Consumer Protection and How Your Assets are Safeguarded
Consumer Protection and How Your Assets are Safeguarded
In addition to planning considerations, clients often ask how their assets are protected.
Canada’s financial services industry provides multiple layers of consumer protection. While many are familiar with coverage through the Canada Deposit Insurance Corporation (CDIC), fewer are aware of the protections available through the life insurance industry.
Assuris, the not-for-profit organization that protects Canadian policyholders, provides coverage for many types of insurance and investment products issued by member companies.
To learn more, please refer to the resources below:
Assuris
If you are a Canadian citizen or resident and you purchased a policy from a member life and health insurance company, you are automatically protected by Assuris!
Protection by Benefit
Assuris’ protection applies to all individual and group products issued by our member companies. The guaranteed levels of protection by product benefit are as follows:
Death Benefit
A death benefit is the guaranteed amount payable to your beneficiary upon your passing. The most common types of products that pay a death benefit are term life, universal life, and whole life policies.
Assuris guarantees that the policyholder will retain up to $1,000,000 or 90% of the benefit amount, whichever is higher.
Health Expense
A health expense benefit is the guaranteed amount reimbursed to you under your health and critical illness policies. The most common types of products that pay a health expense benefit include critical illness, supplementary medical and travel insurance policies.
Assuris guarantees that the policyholder will retain up to $250,000 or 90% of the benefit amount, whichever is higher.
Monthly Income
A monthly income benefit is any income you receive on a regular basis. The most common types of products that pay a monthly income are annuities, Registered Retirement Income Funds (RRIFs), disability and long-term care policies.
Assuris guarantees that the policyholder will retain up to $5,000/month or 90% of the benefit amount, whichever is higher.
Cash Value
A cash value benefit is the amount you receive from the tax-sheltered savings built into your policy. It is also the amount you receive if you surrender your policy. The most common types of products that offer a cash value benefit include universal and whole life policies.
Assuris guarantees that the policyholder will retain up to $100,000 or 90% of the benefit amount, whichever is higher.
Accumulated Value
An accumulated value benefit is a savings investment account that grows over time, including any interest earned. The most common types of products that offer an accumulated value benefit include accumulation annuities, universal life overflow accounts, and whole life dividend deposit accounts.
Assuris guarantees that the policyholder will retain up to $100,000 or 90% of the benefit amount, whichever is higher.
Segregated Fund Gurantee
A segregated fund provides a guarantee on your investment while it accumulates value by investing in capital securities such as stocks and bonds.
Assuris guarantees that the policyholder will retain up to $100,000 or 90% of the benefit amount, whichever is higher.
Protection by Product
Assuris’ protection applies separately to all individual and group products issued by our member companies.
Visit our page on Consumer Protection for more information.
Source: https://assuris.ca/how-am-i-protected/
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