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Are Your Financial Assets Safe with Insurance Companies?

Olu Olu
Sep 17
2 min read

Assuris is the nonprofit organization that provides vital protection to Canadians who hold life insurance and related products. It serves as a safety net, ensuring policyholders are not left stranded if their insurance company fails.

Who Is Assuris?

Assuris is a federally incorporated, nonprofit organization funded by Canadian life and health insurance companies. It does not charge policyholders directly. Instead, member insurance companies pay fees to support Assuris’s protection fund.

The organization operates under the guidance of federal and provincial regulators, with the mandate to protect Canadian life insurance policyholders from losses resulting from the insolvency of their insurance provider.

What Does Assuris Protect?

Assuris protects policyholders holding certain insurance products from a member company that becomes insolvent, covering:

Life insurance policies (term life, whole life, universal life, variable life)
Segregated funds (life insurance investment products)
Disability and critical illness insurance
Health and dental insurance
Annuities (guaranteeing income payments)

Coverage Limits and Guarantees

Assuris guarantees that policyholders will retain access to at least 85% of their promised benefits regardless of insolvency, and in many cases, 100% coverage applies. Specific protections include:

Death benefits: At least 85% of the original promised amount
Monthly income/Disability benefits: At least 85% of the original promised amount
Cash values and policy loans: At least 85% of the original amount held
Annuity income: At least 85% of the payment amounts

If the insolvency occurs, Assuris works to transfer policies to a solvent insurer to minimize disruption to policyholders.

When Does Assuris Protection Apply?

Assuris protection covers policies issued by a Canadian life insurance company that is a member of Assuris.
It does not cover products issued by insurance companies not regulated in Canada or policies held outside Canada.
The protection applies only if the insurer becomes insolvent, not for losses caused by market value changes or policyholder lapses.

Important Assuris Facts for Policyholders

Automatic protection: You do not need to apply or pay; protection is built-in if you have qualifying policies with an Assuris member company.
Wide coverage: More than 97% of Canadian life insurance policies are under Assuris protection.
Fast action: Assuris collaborates with regulators and insurers to ensure swift policyholder support and minimize disruption.
Limited exclusions: As a safety net, Assuris protects promised insurance benefits but does not extend to investment value losses or unregulated products.

Conclusion

Life insurance products often involve long-term promises critical to financial security—protection for your family, disability income, or retirement income. Assuris’s role ensures these promises remain intact even in worst-case financial scenarios, providing confidence and stability for millions of Canadians.

For policies covered by Assuris, peace of mind comes standard—because your financial protection is backed by a dedicated, government-supported organization focused solely on keeping Canadian insurance promises alive. See a full list of Assuris members here.

If you need help setting up the most beneficial life insurance policy for you and your family - Let’s Talk. I help clients across Canada build sustainable financial plans rooted in clarity and confidence.