Term Life

Product

Your term life policy pays a death benefit if the insured person dies during the term of the policy. Common terms are 5, 10, or 20 years and to ages 65 or 70.

Assuris Protection

If your life insurance company fails, Assuris will ensure that the coverage under your term life 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 death benefit. For policies that have a death benefit of $200,000 or less, you will retain the full amount of your benefit.

Associated Benefits

Term Conversion

Where a term life policy contains the right to convert to permanent life insurance, this right continues however, the benefit may be reduced as a result of the failure. A term conversion allows you to convert your term life policy to a permanent life insurance policy regardless of the insured’s health. After the date of failure, the death benefit on your term life policy may be reduced. You will be able to convert your policy to a permanent life insurance policy after any adjustments have been made to your death benefit.


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%.

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

What happens if I 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.