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Email this9:25 am
November 3, 2022
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For those who have (or are considering) investments in financial products that are offered through Canada's insurance companies, there has been a recent and significant increase in the guarantees offered by that industry's guarantee provider, Assuris. See:
The biggest change is the increase in full guarantee of annuity payments from $2,000 per month to $5,000 per month.
The second biggest change is the increase in partial insurance for amounts that exceed full coverage limits from 85% to 90% coverage.
1:30 pm
December 8, 2015
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Thanks for the info.
I'm happy to see the $5000 per month guarantee for annuity payments.
That's a big jump from $2000.
Any thoughts on why such a big increase?
I guess the industry is getting a lot of inquiries and/or have a large number of policies above the $2000 monthly payout amount. This would give buyers the confidence to purchase larger policies.
1:37 pm
November 3, 2022
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amidat said
Any thoughts on why such a big increase?
I guess the industry is getting a lot of inquiries and/or have a large number of policies above the $2000 monthly payout amount. This would give buyers the confidence to purchase larger policies.
I have no deep or inside knowledge of Canada's insurance industry. But one possibility about why they raised the guarantee coverage is not that they were getting a lot of policies above the $2,000 monthly payout, but rather that they were selling a lot of policies that came in just under the $2,000 monthly payout.
Last year, I purchased a deferred annuity with a future monthly payout of $1,980. That was not a coincidence. Had the guarantees been what they are now, I would likely have bought a larger policy. Maybe the insurance executives realized that they were leaving money on the table, so to speak, with the lower insurance coverage?
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