The Difference Between CIDC (Bank) & Assuris (Insurance) coverages  

First, we will look at what each of these is, and then we will take a little dive into how they differ. 

CIDC (Canada Deposit Insurance Corporation)

Is the federal Crown corporation that contributes to the stability of the Canadian financial system by providing deposit insurance against the loss of eligible deposits at member institutions in the event of failure.
Eligible deposits are automatically covered to a limit of $100,000 per insured category at each CDIC member financial institution. Members include banks, federally regulated credit unions, as well as loan and trust companies and associations governed by the Cooperative Credit Associations Act that take deposits.


Is an independent not-for-profit, industry-funded organization that protects Canadian policyholders if their life insurance company fails. Assuris was founded in 1990.
Every life insurance company authorized to sell insurance in Canada is required, by the federal, provincial, and territorial regulators, to become a member of Assuris. Members cannot terminate their membership as long as they are licensed to write business in Canada or have any in force business in Canada.
As a client, if your life insurance company fails, Assuris will seek to transfer your policies to a solvent life insurance company. Assuris guarantees that you will retain at least 85% of your insurance benefits that you were promised. Insurance benefits include Death Benefit, Health Expense, Monthly Income and Cash Value. Assuris provides 100% protection when benefits are below certain dollar values. For your investment products, Assuris guarantees that you will retain 100% of your Accumulated Value benefit up to a maximum of $100,000.
Assuris protects 85% of the guarantees on your Segregated Funds held with a life insurance company. The definition of coverage that Assuris offers is as follows: “If your life insurance company fails, Assuris guarantees that you will retain up to $60,000 or 85% of the promised guaranteed amounts, whichever is higher.” Since many Segregated Funds offer a 100% principal & death benefit guarantee, this means that Assuris will protect 85% of the guarantees on your Segregated Fund investments, with no maximum! 


So where is the safest place to hold your investments you ask? 

Let’s use Mrs. Brown as an example and you be the judge:

Currently, Mrs. Brown has $1million in non-registered assets, invested in multiple GIC’s at the local bank. Mrs. Brown also has $1million invested in Segregated Funds with a 100% guarantee. In the very unlikely event that either her bank or her life insurance company were to become insolvent, this is how each of the deposit insurers would protect Mrs. Brown’s assets:


Mrs. Brown $1 million Non- Registered Assets 

$100,000 maximum protection per depositor, therefore,
85% of $1,000,000 Seg Fund
$100,000 returned to Mrs. Brown
$850,000 returned to Mrs. Brown


For arguments’ sake, let’s change things up a little and make half of Mrs. Brown’s assets Registered and half Non-Registered, and assume they are in multiple guaranteed certificates of $100,000 denominations and see how the protection stacks up:


Mrs. Brown $500,000 Non-Registered Assets $500,000 in RRSP’s

$500,000 NR = $100,000 protected
$500,000 NR = 85% protection (invested in Seg funds with 100% guarantee)
$500,000 RRSP = $100,000 protected
$500,000 RRSP = 85% protection (invested in Seg funds with 100% guarantee)
$200,000 returned to Mrs. Brown
$850,000 returned to Mrs. Brown


Many people believe each deposit certificate at the bank is protected, to a maximum of $100,000 each, but as the evidence shows above, this is not the case.
Since the CDIC was established by Parliament in 1967, there have been 43 financial institution failures affecting more than two million depositors.
In Canada only 3 insurance companies have gone bankrupt, Les Coopérants on Jan 3rd 1992, Sovereign Life on January 18th 1993, and Confederation Life on August 11th 1994.
Through the three insolvencies, Assuris’ coverage has protected almost three million people representing over 10% of Canadians.
If you have investments with Bowie Financial Inc. you are backed by Assuris.  
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