Disability Income

Product

Your disability income policy pays a monthly income benefit if you become disabled.

Assuris Protection

If your life insurance company fails, Assuris will ensure that the coverage under your disability income 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 promised monthly income benefit. For policies that have a monthly income benefit of $2,000 or less, you will retain the full amount of your benefit.

Example 1

Monthly Income Benefit

$1,500
/month

Original Benefit Amount

In calculating your Assuris protection, you will retain up to $2,000 or 85% of your monthly income benefit, whichever is higher.

Since the amount is less than $2,000 a month, your monthly income benefit is fully protected.

$1,500
/month

Adjusted Benefit

Example 2

Monthly Income Benefit

$3,000
/month

Original Benefit Amount

In calculating your Assuris protection, you will retain up to $2,000 or 85% of your monthly income benefit, whichever is higher.

Since the amount is more than $2,000 a month, the 85% protection is applied to the monthly income benefit.

$2,550
/month

(3,000 × 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 monthly income benefit is greater than $2,000 a month and the liquidator recovers 90% of the assets, your policy will be adjusted to 90% instead of Assuris’ guarantee of 85%.

Original Benefit Amount

Monthly Income Benefit $4,000

Recovery

Liquidator Recovery:
$3,600
($4,000 × 90%)

Assuris Protection:
$3,400
($4,000 × 85%)

Explanation

Since the liquidator’s recovery is greater than Assuris’ protection, you will retain $3,600 a month.

Questions and Answers

1. What happens if you have more than one policy?

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

2. What happens if you have a return of premium benefit rider?

Your return of premium rider provides a return of all or part of the premiums you have paid if you do not become disabled during the term of the policy.

If your basic monthly income is reduced, your return of premium rider will be reduced in the same proportion.

3. What happens if you have increasing disability benefits?

If your disability benefits increase under the terms of the policy, for example by inflation adjustments, it will be protected based on the monthly income at the date of failure of your life insurance company. After the date of failure, your monthly income will increase based on the protected amount.

4. What if you receive quarterly or annual benefit payments?

For quarterly benefit payments the Assuris protection is $6,000 quarterly or at least 85% of the promised quarterly payments, whichever is higher.

For annual benefit payments the Assuris protection is $24,000 annually or at least 85% of the promised annual payments, whichever is higher.