Group Life Insurance

Product

Your group life benefit pays a death benefit if the insured person dies during the term of the policy. A group life policy is typically issued to the plan sponsor which can be your employer, union or other association.

Assuris Protection

If the life insurance company holding your group life policy fails, Assuris will ensure that the coverage under your group life policy will continue until the earlier of:

  • The next renewal date for your group contract, or
  • Six months from the date of failure of the life insurance company

Assuris guarantees that you will retain at least 85% of your death benefit. For policies that have a death benefit of $200,000 or less, you will retain the full amount of your benefit.

It is anticipated that the plan sponsor or the liquidator will transfer your group life policy to another member company at the renewal date or within six months.

Example 1

Death Benefit

$150,000
Original Benefit Amount

In calculating your Assuris protection, you will retain up to $200,000 or 85% of your death benefit, whichever is higher.

Since the amount is less than $200,000, your death benefit is fully protected.

$150,000
Adjusted Benefit

Example 2

Death Benefit

$500,000
Original Benefit Amount

In calculating your Assuris protection, you will retain up to $200,000 or 85% of your death benefit, whichever is higher.

Since the amount is more than $200,000, the 85% protection is applied to your death benefit.

$425,000
($500,000 × 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 death benefit is greater than $200,000 and the liquidator recovers 90% of the assets, your policy will be adjusted to 90% instead of Assuris’ guarantee of 85%.

Example

Original Benefit Amount

Death Benefit $400,000

Recovery

Liquidator Recovery:
$360,000
($400,000 × 90%)

Assuris Protection:
$340,000
($400,000 × 85%)

Explanation

Since the liquidator’s recovery is greater than Assuris’ protection, you will retain $360,000.

Questions and Answers

1. What if you have separate group benefits with the same insurance company through different plan sponsors?

Assuris provides separate protection for each group plan sponsor.

2. What happens if you have a group policy and an individual policy with the same company?

Assuris provides separate protection for group policies and individual policies. If you are a member of a group insurance policy and you also have an individual policy with the same life insurance company, Assuris’ protection applies to each policy separately.

3. What happens if you have a group accidental death and dismemberment benefit insurance policy?

Your group accidental death and dismemberment benefit will pay a benefit to the insured person if the insured person has an accidental death or if the insured person loses the use of their limbs or their sight as detailed in each contract. If the life insurance company holding your group accidental death and dismemberment benefit fails, Assuris will ensure that your coverage will continue until the earlier of:

  • The next renewal date for your group contract, or
  • Six months from the life insurance company failure.

Assuris guarantees that you will retain at least 85% of your death benefits. For policies that have death benefits of $200,000 or less, you will retain the full amount of your benefits.