Purple Shield Canada Purple ShieldAssurant Life of CanadaFamilySide Canada Warning - Don't get ripped off Newmarket Ontario

Don't get ripped off by Canada Purple Shield (Assurant Life of Canada).  Those giving Testimonials on the website probably are just glad to see money coming to them and are not aware that it is just a portion of what their loved one paid in.

Here's my example.  My mother passed away in May 2015, and  going through her Will folder I came across a "Policy Data Page" issued in 2006 by Purple Shield.  The "Initial Face Amount" was $4000.  With a monthly payment of $72 over 10 years.  And looking through her bank statements I found that Assurant was still withdrawing money.

I couldn't find the actual policy that she had signed, so I phoned Assurant and was told that I had an amount coming and would be sent paperwork to fill out.  I asked for a copy of the policy she had signed.

I received the paperwork to fill in but didn't get a copy of the policy.  So I repeated my request.  And sent in my claim.  I received a cheque for $4,700 which included interest but no copy of the policy came with it.  Huh?  Hold on, monthly payments over 9 years adds up to a lot more than $4k. My mother wasn't a fool.  $4,700 is nice but she had paid in a lot more.  So I asked for a copy of the policy again.

I finally received the copy and found that the salesman had circled 10 (years) rather than 5 though the $4k would have been paid up in 5. (My mother had also bought a Prepaid Funeral Services package from the same salesman at the same time which was paid up in 5 years.  It covered most funeral expenses, no complaints about that.  And I presume mom wanted extras such as cremation, food and hall rental, covered through Purple Shield.)  So I assumed that the salesman had accidently circled 10 years rather than 5.

I phoned the salesman, as an email went unanswered.  And explained that he must have made a mistake and had circled 10 years when 5 would have covered it and that Assurant had continued withdrawing funds as a result.  He assured me it wasn't a mistake.  That it was an insurance policy and Purple Sheild would have had to pay the full $4k even if my mother had only made a couple of payments and then died.  That was how insurance works.

But that wasn't how my mother worked.  She wouldn't have knowingly agreed to pay in over $8k to get $4k back.  Even a low interest bank account would have given a better return. She must have been misled into believing that I would get what she paid in plus interest.  But what she had signed for was FACE VALUE plus interest.

Anyhow, this is my warning to you.  If you have a loved one enrolled with Purple Sheild, make sure they know what "Face Value" means.  And if you've already collected, be aware that they may have been ripped off.