Hi just want to make sure i understand properly. If i buy a life insurance with 1 million SA. Few years later the insuer bankrupt. i am protected 500k SA and up to 100k surrender value?

Hi anon,

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You are referring to the Policy Owners' Protection Scheme entitlements.

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Your understanding is correct. The caps are applicable to the riders as well.

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One thing to note is that while the scenario you stated may happen, it is also highly, highly unlikely, as insurers also transfer their risks to re-insurers.

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Beyond that, regulations, in particular the capital adequacy ratio of the insurer (which is a measure of how 'prepared' the insurer is to pay potential claims), also mean that insurers themselves are well prepared for claims.