Life insurance protection reserves
a current value measure of the expected future payments to households on life, health and accident policies. Insurance protection reserves represent value imputed to households (i.e. policyholders) arising from the actuarial liabilities of life insurance companies. In other words, this category represents the non-investment/non-savings component of insurance policies purchased by households. It does not represent the cash surrender value or the face value of policies in-force, but rather is that which life insurance companies deem necessary, and are mandated to set aside, by the regulators, in order to satisfy their insurance policy liabilities. In our functional presentation of the Investor Economics Household Balance Sheet Report—Canada, the investment and savings activities of households appear with life insurance segregated funds and guaranteed interest annuities.