What happens if an insurance company goes bankrupt?
When it comes to insurance, peace of mind is invaluable. As consumers, we trust that the insurance companies we choose will honor their commitments, providing financial security in times of need. But what happens if the unthinkable occurs, and your insurer goes bankrupt before your policy term ends?
In Canada, there are robust measures in place to ensure that policyholders are protected even in the event of an insurance company’s insolvency. Enter Assuris, the guardian angel of the insurance world. In this blog post, we’ll delve into what Assuris is, how it works, and why it’s essential for every Canadian policyholder.
What is Assuris?
Assuris is a non-profit organization designated by the Minister of Finance, tasked with protecting policyholders if their life or health insurance company goes bankrupt. Think of it as a safety net, ensuring that your insurance benefits remain intact even in the face of financial turmoil.
How Does Assuris Protect Policyholders?
Assuris operates on a two-pronged approach: prevention and risk-transfer. The Office of the Superintendent of Financial Institutions (OSFI) sets regulations to prevent insurance companies from going bankrupt. However, in the rare event that a company does fail, Assuris steps in to ensure that policyholders’ coverage is transferred to a new insurer, maintaining the majority of their benefits.
Why Assuris Matters
Assuris offers peace of mind to Canadian policyholders, knowing that their insurance benefits are safeguarded. With Assuris, you can rest assured that up to 90% of your life and health insurance benefits are protected, providing a crucial safety net during uncertain times.
Assuris: A Track Record of Protection
Assuris’ effectiveness is evident in its track record. In instances like the Union of Canada Life Insurance’s collapse in 2012, Assuris fully protected 99% of policyholders, demonstrating its unwavering commitment to policyholder security.
How to Ensure Your Protection
To ensure that you’re covered by Assuris, it’s essential to choose an insurance provider that is a member of the organization. Additionally, conducting due diligence when selecting an insurer and opting for federally regulated companies can provide added security.
In our blog post, we’ve covered essential aspects of Assuris protection, ensuring peace of mind for Canadian policyholders. For further details or references, you can visit the Assuris website at https://assuris.ca/.
Conclusion: Navigating Insurance Stability with Assuris
In today’s uncertain world, insurance stability is more critical than ever. With Assuris by your side, you can navigate the insurance landscape with confidence, knowing that your benefits are protected. Whether you’re purchasing a life, health, critical illness, or disability insurance policy, Assuris provides the safety net you need for peace of mind.
At United Life, we’re committed to providing comprehensive insurance solutions backed by Assuris’ protection. Contact us today to learn more about how we can help you secure your insurance needs and access Assuris’ guaranteed protection. With United Life and Assuris, your financial security is our top priority.
