Thursday, July 09, 2009

Life Annuity Protection

If I purchase a life annuity or life annuities from a large life insurance company in Canada,what protection do I have for my income and capital?

If you purchase a product from a life insurance company which is a member of Assuris, you are protected by Assuris. If your member life insurance company fails, your life insurance policy will be transferred to a solvent company.

A Life annuity policy that pays a monthly or annual income benefit, is protected under Assuris’ income protection. On transfer, Assuris guarantees that you will retain up to $2,000 per month or 85% of the promised monthly income benefit, whichever is higher. Registered and non registered benefits are protected separately. A joint life policy is protected separately and in addition to the individual lives.

Ownership is not relevant as the protected person is the annuitant ,the individual who is receiving the life annuity benefit.


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