Frequently Asked Questions
How secure are structures?
A structured settlement is one of the most secure, guaranteed investments available. In fact, all structures contain three levels of guarantee:
Guarantee #1: The Issuing Life Insurer
McKellar places structured settlements with only those Canadian life insurers that offer the greatest long-term security.
Because of the degree of security offered by these life insurers, the chance of a default is virtually zero. Nevertheless, there are two additional levels of protection.
Guarantee #2: Assuris
Assuris is supported and run by the Canadian life insurance industry. If a life insurer is not able to make the structure payments, Assuris guarantees coverage up to $2,000 per month. If the payment is higher, Assuris covers 85% of the promised amount, but not less than $2,000 per payment. To access their website, click here.
Guarantee #3: The Structure Owner
You do not own your structured settlement. If you did, it would simply be a taxable annuity. For Canada Revenue Agency to approve the structure as tax-free, a separate insurer must own it, and must remain liable for your payments if the life insurer cannot make them, and if Assuris' coverage is insufficient.
McKellar Lead Sponsor of the 2012 BIST and OBIA Mix & Mingle
McKellar Lead Sponsor of the 2012 BIST and OBIA Mix & Mingle