Final answer:
Assuris covers up to 85% or $200,000, whichever is higher, for GMWB policies. For a policy with a $255,000 guaranteed balance, coverage would be $200,000.
Step-by-step explanation:
Assuris is the organization that protects Canadian policyholders in the event that their life insurance company fails. For Guaranteed Minimum Withdrawal Benefit (GMWB) policies, Assuris guarantees that policyholders will retain up to 85% of the promised benefits or $200,000, whichever is higher. In the case of a GMWB policy with a guaranteed withdrawal balance of $255,000, Assuris would provide coverage for $200,000, as it exceeds 85% of the total balance (which would be $216,750).
Learn more about Guaranteed Minimum Withdrawal Benefit (GMWB)