Critical Illness

Product

Your critical illness policy pays a cash benefit if you are diagnosed with one of the medical conditions listed in the policy. Your critical illness policy is a health expense.

Assuris Protection

If your life insurance company fails, Assuris will ensure that the coverage under your critical illness policy will continue and we will seek to transfer your policy to a solvent company.

  • Assuris guarantees that you will retain at least 85% of your critical illness benefit under Assuris’ Health Expense protection. For policies that have a health expense of $60,000 or less, you will retain the full amount of your benefit.

Example 1

Critical Illness Benefit

$50,000
Original Benefit Amount

In calculating your Assuris protection, you will retain up to $60,000 or 85% of your critical illness benefit, whichever is higher.

Since the amount is less than $60,000, your critical illness benefit is fully protected.

$50,000
Adjusted Benefit

Example 2

Critical Illness Benefit

$100,000
Original Benefit Amount

In calculating your Assuris protection, you will retain up to $60,000 or 85% of your critical illness benefit, whichever is higher.

Since the amount is more than $100,000, the 85% protection is applied to your critical illness benefit.

$85,000
($100,000 × 85%)
Adjusted Benefit

The liquidator, appointed to manage the failed company, will seek to sell the assets and transfer the liabilities with the aim to get the best value for policyholders. This will determine the recovery percentage.

Your benefits will be adjusted to the greater of the Assuris protection or the recovery percentage achieved by the liquidator.

For example, if your critical illness benefit is greater than $60,000 and the liquidator recovers 90% of the assets, your policy will be adjusted to 90% instead of Assuris’ guarantee of 85%.

Original Benefit Amount

Critical illness benefit $100,000

Recovery

Liquidator Recovery:
$90,000
($100,000 × 90%)

Assuris Protection:
$85,000
($100,000 × 85%)

Explanation

Since the liquidator’s recovery is greater than Assuris’ protection, you will retain $90,000.

Questions and Answers

What happens if you have more than one policy?

Each member company has separate Assuris protection. If you have more than one policy with the same member company, all similar benefits are added together before Assuris’ protection is applied.