Your accumulation annuity is an investment product that accumulates value by adding interest to the investment. The interest rates may typically be guaranteed for periods of 1, 3, 5 and up to 10 years. Assuris’ protection applies to your accumulation annuity, regardless of the term. Accumulation annuities are commonly known as GICs (Guaranteed Investment Certificates).
If your life insurance company fails, Assuris will seek to transfer your policy to a solvent company.
$80,000
Original
Benefit Amount
In calculating your Assuris protection, you will retain the amount of your accumulated value benefit up to a maximum of $100,000.
Since the amount is less than $100,000, your accumulated value benefit is fully protected.
$80,000
Adjusted Benefit
$150,000
Original
Benefit Amount
In calculating your Assuris protection, you will retain the amount of your accumulated value benefit up to a maximum of $100,000.
Since the amount is more than $100,000, your accumulated value benefit is protected for $100,000.
$100,000
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 accumulation annuity is greater than $100,000 and the liquidator recovers 90% of the assets, your benefit will be adjusted to 90% instead of Assuris’ maximum guarantee of $100,000.
Accumulated Value $120,000
Liquidator Recovery:
$108,000
($120,000 × 90%)
Assuris Protection:
Up to $100,000
Since the liquidator’s recovery is greater than Assuris’ protection, you will retain $108,000.
Universal life overflow account – is an associated account with a universal life policy. These accounts may be used to hold pre-paid premiums or savings in excess of the tax-exempt limits. These types of accounts receive Assuris’ Accumulated Value protection.
Associated account with whole life – is an investment account with a whole life policy. This may be used to hold pre-paid premiums or accumulated cash dividends. These types of accounts receive Assuris’ Accumulated Value protection.
Assuris protects each member company separately. If you have more than one accumulation annuity with the same member company, all similar benefits are added together before Assuris’ protection is applied.
Yes, interest will continue to be credited on the protected amount after the date of failure, in accordance with the terms of the policy.
The stock index will continue to be applied to the protected amount after the date of failure, in accordance with the terms of the policy.
All similar benefits issued by the same member life insurance company are added together before Assuris’ protection is applied.
Your accumulation annuity is protected under Assuris’ Accumulated Value protection.
Your accumulation annuity that is jointly owned is split evenly and added to any individually owned accumulation annuities, and then Assuris’ protection is applied.