Assuris and GMWBs

Assuris and GMWBs

Recently, I joined a QFS advisor in a client meeting where the client asked: “What happens if the company can’t pay me my income?” It’s a good question. We make many promises to our clients on behalf of the carriers so I thought I’d share with you the Assuris protection on GMWBs.

As you know, Assuris is the insurer’s insurer. Insurance companies pay premiums to Assuris and in return, Assuris offers guarantees to policy and contract holders in the event the insurer is unable to pay a claim or benefit.

Assuris covers GMWBs in both the savings and income phases. In the savings phase, Assuris guarantees clients will keep the greater of $60,000 and 85% of the promised bonus base. The bonus base includes deposits, bonuses, resets and withdrawals made prior to the date of insolvency. What stands out to me is that the notional bonuses are maintained and therefore could be used to determine income amounts in the future. That’s fantastic!

In the income phase, clients are promised the greater of up to $2,000 or 85% of the guaranteed income. In other words, if your client is receiving less than $2,000 per month, their entire payment is guaranteed.

Both the saving and income phase guarantees are very generous and should give your clients comfort.

Here’s a piece from Empire Life about Assuris and GMWBs.

Take care,

Scott Edgington

Director of Wealth

Qualified Financial Services

416 786 4140