Annuity Guarantees
How is your annuity protected
In Canada, your annuity is protected by a consumer protection agency called Assuris if your annuity provider goes out of business.
Here's how it works:
Assuris Membership:
Most life insurance companies in Canada, including those offering annuities, are required to be members of Assuris. This membership ensures a certain level of financial protection for policyholders in case of a company failure.
Coverage Limits:
Assuris protects a portion of your annuity’s guaranteed payments, up to a certain maximum amount. The coverage applies to monthly payments, with different limits for various amounts:
%
Coverage:
Applicable for monthly payments up to $5,000 CAD.
%
coverage:
Applicable for the portion of your monthly payment exceeding $5,000 CAD.
Important to Note:
This protection applies to the income payments guaranteed by your annuity contract. Any additional features or benefits may not be covered.
It’s crucial to verify with your insurance company if your specific annuity product is covered by Assuris.
Here's what happens if your annuity provider goes bankrupt:
Assuris Steps In:
If your annuity provider faces financial difficulties and can't meet its obligations, Assuris will step in to help.
Benefit Payments:
Assuris will take over responsibility for making your guaranteed annuity payments, up to the covered limits mentioned earlier.
Additional Protections:
Contractual Guarantees:
Your annuity contract itself outlines the guaranteed benefits and payouts promised by the insurance company.
Provincial Regulations:
Each province in Canada might have additional regulations in place to offer some level of protection for annuity holders.
Overall, while an annuity provider's failure is a rare event, Assuris provides a safety net for Canadians who invest in annuities. It ensures you continue to receive at least a portion of your guaranteed income stream even if the insurance company encounters financial problems.
Remember:
It’s always wise to check with your insurance company and Assuris to confirm the specific coverage details for your annuity product.
- info@annuitiesincanada.ca
- +1-647-362-5511
- Life www.annuitiesincanada.ca Inc. 1120 Bay Street Gravenhurst, Ontario P1P 1Z9
