CompCorp was a non-profit organization that operated under Canadian Federal regulations designed to protect life insurance policyholders. If a life insurance company becomes insolvent, CompCorp would help transfer life insurance policies from the insolvent company to a solvent one.
CompCorp was founded in 1990, and it changed its name to Assuris in 2005. Basically, Assuris is insurance for life insurance companies. In addition to life insurance policies, Assuris also provides protection for critical illness insurance policies, long term care policies, annuities, disability income and individual segregated funds.
Policyholders do not need to apply to Assuris in order to receive protection; all life insurance companies in Canada are required by law to become members of Assuris. Member companies are not allowed to leave Assuris as long as they continue to do business in Canada. If your life insurance company is not listed as a current member of Assuris, then they are probably not operating with the authorization of the federal government. Assuris has only had to deal with three insolvent companies since 1990: Les Coopérants, Sovereign Life and Confederation Life Insurance.
Although life insurance policies are protected through Assuris, policyholders are not always guaranteed to receive 100 percent of their benefits. If your monthly income policy is worth less than $2,000, then you are guaranteed the entire amount. The same is true for health expenses up to $60,000, death benefits up to $200,000 and cash values up to $60,000. However, if the amounts are higher, only up to 85 percent is guaranteed.
Assuris commonly deals with four types of individual life insurance policies: term life insurance, universal life insurance, whole life insurance and term to 100 life insurance. Most term life insurance policies are sold in five, 10 or 20 year policies, and beneficiaries are only guaranteed to receive death benefits if the policyholder dies within the time period covered by the policy. Universal life insurance provides coverage for a policyholder’s entire life as well as tax-exempt savings. Whole life insurance policies are similar to universal life insurance policies; they too provide lifetime coverage for policyholders. However, whole life insurance policies build up cash value. You can choose to purchase a participating whole life insurance policy that pays out dividends to policyholders if the company makes extra profits that year.
A term to 100 life insurance policy is a cross between a permanent life insurance policy and a term life insurance policy. It’s considered a term life insurance policy since it only insures a policyholder up until the age of 100, but since so few people live to that age, the odds are that your term to 100 policy will function more like a typical permanent life insurance policy that insures you for your entire life. Typically, term to 100 life insurance will not have cash value even though it’s a type of permanent life insurance. Other life insurance policies covered by Assuris include decreasing term policies, endowment policies, increasing death benefit policies, adjustable death benefit policies and adjustable cash value policies.