Your group RRIF (Registered Retirement Income Fund) is an investment product that pays out income to you. RRIFs are registered under the Income Tax Act (Canada). You don’t pay tax on the interest income and growth of the account value. You must withdraw a minimum income amount each year from the funds in your RRIF but you can also withdraw amounts in excess of this minimum. Typically, your payments will be monthly but can also be quarterly or annually.
If your group RRIF is invested in an accumulation annuity, your RRIF is eligible for Assuris’ protection.
If your life insurance company fails, Assuris will ensure that the payments under your RRIF policy will continue and we will seek to transfer your policy to a solvent company.
If you decide to take your RRIF as a lump sum, the payment is protected under Assuris’ Accumulated Value protection. Assuris guarantees that you will retain the amount of your investment up to a maximum of $100,000.
If you decide to continue taking payments from your RRIF, after the date of failure, the payments are protected under Assuris’ Monthly Income protection. At the date of failure, if the annual minimum withdrawals from your RRIF:
- are less than or equal to $24,000, your payments are fully protected.
- exceed $24,000, the payments will be protected for 85%.
Questions and Answers
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.