Changes to Par and maintaining 2026-2027 Sun Life dividend scale
Effective April 1, 2026, we’re maintaining the 2026-2027 Sun Life dividend scale. Additionally, Sun Life is announcing some upcoming changes to our Par business.
1. Offer a more levelized advisor commission on Sun Par Accumulator II to further strengthen our commitment to all Par policyholders.
As part of this transition, we’re also offering you a more levelized commission on Sun Par Accumulator II to further strengthen our commitment to all Par policyholders.
We understand this represents a significant change, and we want to support you through this transition. To ensure you have adequate time to prepare, the new commission structure will take effect on February 16.
By introducing a more levelized commission structure for this product, we bolster the long-term health of the Sun Life Par Account and recognize an advisor’s role in ongoing Client service, ultimately benefitting all Par policyholders.
We’re adjusting initial commissions and enhancing renewal commissions for Sun Par Accumulator II:
From:
| Life & 20 pay: |
|---|
| 50% FYC in year 1 |
| 5% in year 2 and 3 |
| 2% in year 4 onwards |
| 10 pay: |
|---|
| 35% FYC in year 1 |
| 5% in year 2 and 3 |
| 2% in year 4 onwards |
To:
| Life & 20 pay: |
|---|
| 25% FYC in year 1 |
| 10% in year 2 onwards |
| 10 pay: |
|---|
| 17.5% FYC in year 1 |
| 10% in year 2 onwards |
The design of high early-cash-value products, when offered together with high initial commissions, can expose the Par Account to potential adverse experience. It also attracts high capital requirements. This is not unique to Sun Life. A more levelized commission structure for this product helps to mitigate these potential risks and further strengthens our Par Account.
Sun Life continues to provide a strong and stable Par Account. We recently reviewed all experience components when determining the 2026-2027 Sun Life dividend scale. Our decision to maintain reflects the strength and stability of the Sun Life Par Account.
What are the benefits?
Higher renewal commissions recognize the advisor’s long-term role in helping Clients maintain their coverage and offering the advice they deserve:
- Advisors benefit from more stable, predictable income streams and more long-term value for their block of business.
- Par policyholders benefit from more dividend stability because this change bolsters the long-term health of the Par Account.
This tool can help you see how the new commission structure works based on different scenarios.
We believe in the value of advice to help Clients protect what matters most. Changing to a more levelized commission reflects our leadership in risk management, our commitments to strong Par governance and the protective measure we take to benefit all Par policyholders.
Notes:
- There are no other commission changes to Plus Premium or optional benefits.
- Commissions are based on the date the application is SUBMITTED in Sun eApp:
- Before February 16, 2026 will have the old commissions rates.
- On or after February 16, 2026 will have the new commission rates
- Commissions are based on the date the application is RECEIVED for paper apps:
- Before February 16, 2026 will have the old commissions rates.
- On or after February 16, 2026 will have the new commission rates
2. 2026-2027 Sun Life dividend scale announcement
We’re pleased to also announce we’re maintaining the 2026-2027 dividend scale, effective April 1, 2026, including the dividend scale interest rate of 6.25%.
We’re also maintaining the special dividend announced in 2023 for pre-2004 policies, and the special maturity dividends for pre-1996 policies.
We review all elements of experience to determine Clients’ dividend scales, including investment, mortality, lapse, expenses and taxes. No changes are required at this time.
Every year, we assess the Sun Life dividend scale. In each review, we remain committed to our principles of strong Par governance and fairness to Clients. The Board of Directors of Sun Life Assurance Company of Canada made this decision based on the recommendation of Sun Life’s Appointed Actuary and in accordance with Sun Life’s Dividend Policy.
Our ability to maintain the dividend scale interest rate and experience portions of a Client’s dividend scale is a testament to our prudent management and the strength and stability of the Sun Life Par Account for over 150 years.
Reminder: The dividend scale interest rate isn’t the return that a Client can expect from their policy. The rate reflects the investment experience of the Par Account and is only a part of a Client’s dividend. It’s important to note that the Sun Life dividend scale for 2026-2027 isn’t an indicator of future performance. We recommend illustrating using the current -0.5% and -1% dividend scale interest rates to show Clients future dividends are not guaranteed.
3. Sun Par Accelerator closing on February 9
Effective February 9, Sun Life will close the Sun Par Accelerator product to new sales as Canadians weren’t choosing this solution.
There’s no impact to in-force policyholders. Updated commission schedules to remove Sun Par Accelerator will be shared posted on Suncentral on February 9.