Annuity payments are protected by Assuris, a not for profit organization, which is structured to protect any life insurance policyholder in Canada.
Each life insurance company in Canada, is required by provincial and federal regulations, to be a member. This protects all life insurance and life annuity holders against any loss of benefits by transferring their policies to another life insurance company.
Can I Trust Assuris?
Assuris maintains a Liquidity Fund of at least $100 million and member companies will be assessed to provide any further necessary funds to provide protection for all life insurance and life annuity policyholders.
What is the Dollar Limit of the Protection?
For an annuity, protection covers incomes up to $2000 a month, $6000 a quarter or $24,000 a year.
Thus you should take a second or more annuities if the anticipated income exceeds this amount as otherwise only 85% of the total income is protected.
What if I take 2 or more Policies with One Company?
Your benefits are joined and will be treated as one policy, which is another reason to fly below the $2000 a month radar.