Group Payout Annuities

Product

A group payout annuity policy pays a monthly income benefit to each annuitant in the group while the annuitant is alive.

Assuris Protection

If your life insurance company fails, Assuris will ensure that the payments under your payout annuity 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 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% is applied to your 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 and the liquidator recovers 90% of the assets, your benefit 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 if you have 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.