Your long term care policy pays a monthly income benefit if you do not have the capacity for self-care as described in the policy.
If your life insurance company fails, Assuris will ensure that the coverage under your long term care policy will continue and we will seek to transfer your policy to a solvent company.
$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
$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%.
Monthly Income Benefit $4,000
Liquidator Recovery:
$3,600
($4,000 × 90%)
Assuris Protection:
$3,400
($4,000 × 85%)
Since the liquidator’s recovery is greater than Assuris’ protection, you will retain $3,600 a month.
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.
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.