Conversions: Life and Critical Illness Insurance

• Use the Sun eApp or submit form E260 to convert a life insurance policy. 
• Policies must be active and paid to date before a conversion can begin. 
• If a rider or any benefits are added, and the face amount or net amount of coverage increases, a full application and underwriting are needed. This can be completed as an eApp or form 810-2799.
• AML documents are required when converting to a Par, UL, or Sun Permanent Life product. 
• You can refer to the Conversion and Replacement guidelines for more information. 
• If available on the new conversion policy, you can carry over:
  • Waiver of premium
  • Accidental death
  • Child term
  • Owner waiver
  • Business value protection
  • Guaranteed insurability
• All product minimum rules apply.
• You can backdate Par and Universal Life (UL) policies up to 10.5 months. All other non-par policies can be backdated up to 12 months. Our Backdating to save age page has more information. 
• Any unused premiums can be carried over and applied to the new conversion policies as a credit.
• If the Client is currently on disability and would like to do a conversion, the policy provisions will need to be reviewed to see if a conversion is available. Please contact the Advisor Experience Team for more information before submitting a conversion request in this scenario. 
• For partial conversions: When the portion that’s not being converted is being cancelled or terminated, complete the disclosure replacement form(s). The appropriate forms are based on the province of signature. Review our Conversion and Replacement guidelines to see which forms are required.  

The original policy cannot:

• have a bankruptcy notice on it.
• be collaterally assigned.
• have an irrevocable or preferred beneficiary.
• have a different owner from the new policy.

If you’re completing a conversion and changing the smoker status to ‘non-smoker’ and the original policy has smoker rates, we need a:

• Conversion application with the evidence portion of the application completed.
• Urinalysis (if the face amount is equal or greater than $100,000).

Note: Only the new policy will have non-smoker rates. If this is a partial conversion, the original policy will remain with smoker rates.

If you’re completing a conversion and changing the smoking status to ‘non-smoker’ and the original policy has blended rates, we need a:

• completed conversion application, and 
• confirmation if the Client has smoked or used cigarettes, cigarillos, small cigars, pipes, chewing tobacco, nicotine gum or patches, betelnut or tobacco or nicotine in any other form in the last 5 years.

Note: Only the new policy will have non-smoker rates. If this is a partial conversion, the original policy will remain on blended rates.

• Use the Sun eApp or submit form E260 to convert a critical illness insurance policy. 
• Policies must be active and paid to date before a conversion can begin.
• Return of premium on death (ROPD) and return of premium on cancellation/expiry (ROPC/E) are carried over to the new conversion policy. For a partial conversion when part of the existing policy remains active, a portion of the ROPD and/or ROPC/E is carried over to the new policy.
• You can add return of premium on cancellation/expiry (ROPC/E) to the conversion policy without underwriting. 
• You can backdate the new policy up to 6 months.
• Advisors in Quebec must submit a Notice of replacement of insurance of persons contract  form for partial conversions when the portion is being cancelled/terminated.
• A new policy is issued on the same basis as the original policy (i.e. smoker or special class basis).
• Any unused premiums can be carried over and applied to the new conversion policy as a credit.
• All product minimum rules apply.  
• For a Sun Critical Illness T10 policy, refer to the Sun T10 conversion rules at a Glance (810-5139) for more information.
• Detailed information can be found on our Sun Critical Illness Insurance page.  

If you’re completing a conversion and changing the smoking status to ‘non-smoker’ and the original policy has smoker rates, we need a:

• Conversion application with the evidence portion of the application completed.
• Urinalysis (if the face amount is equal or greater than $100,000).

Note: Only the new policy will have non-smoker rates. If this is a partial conversion, the original policy will remain with smoker rates.

• Use the Sun eApp or submit Application for conversion and exercising an option - form 260 for group conversions.
• Sun 1 year term (1YRT), Sun term to 65 (T65) and Sun Lifetime Alternative are plans available for group conversion, depending on the Client’s eligibility.
• An accidental death benefit (ADB) attachment will be available for group plans that include the option of converting their ADB coverage at the same time as their life coverage. No other attachments or benefits are available on group conversions.
• Regardless of the smoking status on the group plan:
  • If 1YRT and T65, the policy will be issued using the existing blended smoker/non-smoker rates.
  • If Sun Lifetime Alternative, the smoking questions on the application must be truthfully answered “No” to be considered for non-smoking rates. If the smoking questions are not answered, a Declaration of Smoking Status (for pending applications only) form 18B will be required to qualify for non-smoking rates.
• If you’re unsure of the maximum amount available for conversion, you can submit the application for $200,000. Our Group Benefits area will investigate and confirm once the application is received.
• Backdating up to 12 months is allowed, as long as the client submits the application during the conversion window (31 days after termination of the Group contract). Select the “retain age” box, when available. If backdating above 11 months, the backdating request should be indicated in the Special Instructions on the application. Otherwise, the policy will be dated 31 days after the termination of the Client’s group coverage. Full premium is required from the policy date.

Group alternate for life insurance 

The Client may apply on a group alternate basis if you think the Client is a standard risk or the group conversion offers less insurance coverage than what the Client wants. Remember:

• Evidence of insurability is needed for underwriting.
• The Client may apply for a group alternate for any currently issued plan, except for Sun 1 year term (1YRT) & Sun term to 65 (T65).
• If the Client is accepted at standard risk or is rated up to a maximum of 250%, the policy will be issued as a group alternate. 
• If the Client is rated higher than 250%, the group alternate will be declined and the policy will be issued as a group conversion. If the Client does not want to pay the rating, they may decide not to proceed with the alternate and request the group conversion to be issued instead. 

When Clients leave their employer, they’re usually able to convert their group life insurance to a group conversion life insurance product, without any underwriting. However, the options are limited both in terms of the type of coverage and the amount of coverage the Clients can apply for. This is where an individual life insurance policy may be a better choice. 

Advantages of an underwritten individual life product over a group conversion product:

1. There are more choices to suit the Client’s specific needs. Clients may have access to multiple Term (with different term lengths and the ability to convert) and/or Permanent products such as UL and Participating life insurance. 
2. You’ll find richer product features with optional benefits that can be added to meet Clients’ unique needs. For example, you can add riders such as Accidental death benefit, Guaranteed insurability benefit, Child Term benefit etc. on our term and permanent policies to create coverage that meets each Client’s specific needs.
3. There’s more flexibility to offer Clients multiple coverage solutions, if needed. For example, a Client can choose a permanent coverage with a Term 10 rider. 
4. With an individual policy, Clients can get more insurance than what they would otherwise qualify for through the guaranteed conversion products. This means that Clients can have the amount of coverage that matches their need and not be under insured. 
5. If the Client is healthy, an individual product tends to be better value for money. 

Even if the Client is rated after being underwritten, individual life coverage could still be the better option given the advantages over a guaranteed group conversion product.

Clients will have to meet the policy minimum coverage amount for each individual policy they apply for and meet the issue age requirements. 

Group critical illness conversions 

Critical illness group conversions can be done directly by the Clients via an online link provided by their employers or via Sun Life Financial advisors.

Clients can call 1-877-893-9893 if they have questions about doing group critical illness conversions.

• An Advisor of Record (AOR) change is needed before starting a conversion on all life insurance policies. This includes Sun branded and SunSpectrum products, as well as products no longer sold. 
• An AOR change can be submitted by completing the Request for Service Advisor (form no. 906-0225), a letter of direction, or a Client’s telephone request to our Client Care Centre.
• Sun Term can be processed without the AOR change before submitting the conversion request.
• The original advisor will be notified and given the opportunity to conserve the business.
• Once the Request for Service Advisor has been processed by Sun Life, you need to complete the Sun eApp or submit form E260.