PAC suspensions

To suspend a withdrawal on an existing pre-authorized chequing (PAC) on life, long term care and critical illness insurance and accumulation annuity policies, please use the Request centre form PAC suspension . If the client isn't able to cover an upcoming pre-authorized chequing (PAC) withdrawal, we can offer a 1 month suspension to their PAC arrangement. Only one PAC suspension is allowed within a 4 month time period. No exceptions are made.

The PAC withdrawal can be suspended for the entire PAC arrangement or one or multiple individual payments on the PAC arrangement. The withdrawals will start again the following month as long as a replacing payment is received. If a returned payment fee is owing and not included in the amount of the replacing payment, PAC will cancel. No follow-up is required on your part.

Note: For ULife policies, if the accumulation/policy fund has enough to cover the monthly cost of insurance (COI), a replacing payment is not required.

PAC suspension

To ensure that the PAC withdrawal will be suspended on time, 5 business days notice is needed.

For contractual premium payments on life, critical illness and long term care insurance policies:

• suspending payments for premiums have to be replaced.

For Sun UL, Sun UL MAX, Sun Limited Pay Life and SunSpectrum Universal Life

• If a replacing payment is not arranged, the suspension can only be processed if there is enough money in the reserve/policy/accumulation fund to cover the cost of insurance.

For loans, unpaid premiums plus interest and premium fund payments:

• suspended payments for loans, unpaid premiums plus interest and premium funds do not need to be replaced.

For accumulation annuity policies:

• suspended payments for accumulation annuity policies do not need to be replaced.

For planned payments:

• If there is enough money in the premium fund to pay the outstanding premium, a replacing payment is not needed.
• If the client decides to send in a cash payment to cover the suspended premium, this money is applied to the premium fund and will be used for the next month's premium.

To suspend a PAC payment:

• All premiums must be paid to date or the accumulation/policy fund must be positive.

Note: If a returned payment fee is owing, we will still suspend the PAC arrangement, however, if the fee is not paid, PAC will cancel.

• Confirm that the suspension is for 1 month only.
• Have the client make arrangements to pay the suspended premium within 3 weeks of the PAC due date.
• If the premiums are not paid, including any returned payment fees, the PAC arrangement will be cancelled except for the exclusions mentioned above.
• The client will need to make other arrangements to pay the suspended premium and any returned payment fees.
• Tell us how the client wants to pay the suspended premium/deposits, and any returned payment fees.

Note: If a returned payment fee is being paid along with premiums/deposits, both must be paid in the same manner.

As some payment methods aren't automatic, giving us notice is important if the client wants to pay:

• from the Withdrawable Premium Fund (WPF)
• by taking a policy loan (if the policy qualifies)
• by using the policy/accumulation fund, or
• by using the reserve fund.