In today’s unpredictable world, many investors wonder if their investments—and the institutions holding them—are truly protected. While most Canadians are familiar with the Canada Deposit Insurance Corporation (CDIC), which safeguards certain bank deposits like GICs or savings accounts up to $100,000 in the event of institutional insolvency, fewer are aware of Assuris as an alternative safeguarding option. This Canadian non-profit organization provides unique protections for insurance-based investment accounts, offering additional peace of mind for investors.
Assuris: Protection for Insurance-Based Investment Accounts
Assuris is specifically dedicated to protecting Canadians who invest through life and health insurance companies. This includes segregated fund investment accounts, which offer a combination of growth potential and protective benefits not typically available with traditional banking products. Assuris coverage can be especially valuable for investors focused on retirement income, legacy planning, and estate protection.
- Coverage Amounts: Assuris protects up to 90% of the guaranteed amount or $100,000, whichever is greater, in the event of institutional insolvency. This protection can significantly exceed CDIC’s $100,000 per account limit for traditional bank deposits, making Assuris an appealing alternative safeguard option for investors seeking peace of mind when their accounts market value surpasses $100,000.
- Income Benefits: For accounts with guaranteed income features (such as those in the payout phase of a Guaranteed Minimum Withdrawal Benefit), Assuris protects up to 90% of the income benefit, capped at $5,000 per month. This ensures that retirees relying on structured income are not left unprotected.
These guarantees, designed specifically for insurance-based accounts, provide a reassuring layer of security for investors focused on protecting their family’s financial future.
How Does This Compare to Mutual Funds?
While mutual funds are popular investment choices, it’s worth noting that they do not offer the same institutional insolvency protections. Mutual fund assets are generally held in trust to protect against creditor claims, but they lack the guaranteed payout protections that Assuris or CDIC offer their investors. This may be an important consideration for those prioritizing security, stability, and legacy.
Encouraging a Discussion on Investment Protection
Deposit insurance—whether through Assuris or CDIC—can provide valuable peace of mind in today’s world. We encourage you to reach out to a trusted professional to confirm the level of protection on your current investments and ensure it meets your goals. At Bowie Financial, we’re here to help; we offer free reviews and guidance. Contact us today to discuss how these safeguards fit into your financial strategy.
To learn more about Assuris and how it protects your insurance-based investments, reach out to us today. We’re here to answer your questions and discuss how these protections can align with your financial goals.