Product
Your term to 100 policy pays a death benefit when the insured person dies. No cash value will be paid if the term to 100 policy is surrendered prior to death.
Assuris Protection
If your life insurance company fails, Assuris will ensure that, the coverage under your term to 100 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.
Example 1
Death Benefit
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, the death benefit is fully protected.
Example 2
Death Benefit
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 the death benefit.
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
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 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.
2. What happens if your Term to 100 contains a Cash Value?
The cash value under your term to 100 policy receives Assuris’ Cash Value protection. Assuris guarantees that you will retain at least 85% of your cash value. For policies that have a cash value benefit of $60,000 or less, you will retain 100%.
A cliff cash value policy does not have cash values until a future specified date (the “Cliff Date”) when it has immediate substantial cash values.
Your future cash values will be protected under Assuris’ Cash Value protection in the same proportion that the sum insured is protected under the death benefit protection.