We’re adjusting cancellation values for some in-force Clarica and SunSpectrum permanent critical illness insurance policies. The adjustment will take effect on affected policies’ 2027 policy anniversaries, beginning January 1, 2027. Adjustments will continue throughout 2027 as affected policies reach their policy anniversary.
In-force CII Cancellation Value adjustment
We're adjusting cancellation values for some in-force Clarica and SunSpectrum permanent critical illness insurance policies.
This page provides information and resources to help you understand the change and support your Clients.
Overview
The cancellation value is the amount of money we will return to a Client if they cancel their policy. The cancellation value is not guaranteed and can increase or decrease depending on:
- How long the policy has been in-force
- Our experience with critical illness incidence rates
- Mortality rates
- Expenses
- Interest rates
The adjustment will take effect on affected policies' 2027 policy anniversaries, beginning January 1, 2027. Adjustments will be made throughout 2027 as affected policies reach their policy anniversary.
Affected policies
The following permanent critical illness insurance policies are affected:
Product |
Series |
Sales period |
|---|---|---|
Clarica Permanent CII |
2001 and 2003 |
March 26, 2001 to July 2, 2004 |
SunSpectrum Permanent CII |
2004 |
July 2, 2004 to September 17, 2012 |
What's changing and why
Most affected policies will experience a decrease in cancellation value. Approximately 39% of policies will experience either no change or an increase.
This adjustment is the result of our regular review of in-force adjustable insurance products. We're adjusting cancellation values primarily because of our updated outlook on mortality and expenses. We've had fewer critical illness insurance claims than expected, especially at older issue ages.
What Clients can expect
Starting mid-November 2026, Clients will receive a personalized letter approximately 60 to 90 days before their policy anniversary. Depending on their policy, the letter will explain that their cancellation value will:
- Increase
- Remain unchanged
- Decrease
- Decrease and may result in the policy lapsing sooner
Clients with no change will still receive a letter reminding them that the cancellation value can be adjusted in the future. Clients will see their updated cancellation value on their 2027 policyholder statement.
Access impacted Client listings
Advisors with impacted Clients will receive their Client listings through Activity Centre starting October 27, 2026.
Advisor actions
- Review the impacted Client information provided through Activity Centre.
- Connect with impacted Clients to discuss the change and help assess their coverage needs.
- For policies that may lapse sooner: Review the impacted Client listing to identify Clients whose policy may lapse sooner because they are using their adjustable cancellation value to pay premiums. These Clients will be directed in their letter to contact their advisor as soon as possible. Advisors should proactively connect with these Clients to explain that continuing to use the cancellation value to pay premiums could result in the loss of coverage sooner than expected, and discuss options to help keep the policy in-force. For policy-specific questions, use Request Centre - Critical Illness Insurance Inquiry.
Key dates
- October 27, 2026 – Lists of affected Clients sent to advisors and firms.
- November 2026 – Client letters begin mailing.
- January 1, 2027 – Cancellation value adjustment begin taking effect on affected policies’ 2027 policy anniversaries.
- Throughout 2027 – Adjustments continue as affected policies reach their policy anniversary.
Resources
Client letter samples
- Sample letter - Cancellation value increase (Coming soon)
- Sample letter - No change to cancellation value (Coming soon)
- Sample letter - Cancellation value decrease (Coming soon)
- Sample letter - Cancellation value decrease with earlier lapse risk (Coming soon)
Additional resources
- September 24 advisor communication
Frequently Asked Questions
2027 In-force CII Cancellation Value Adjustment FAQs
The cancellation value is the amount of money we will return to a Client if they cancel their policy. It is not guaranteed and can increase or decrease depending on factors such as how long the policy has been in-force, critical illness incidence rates, mortality rates, expenses and interest rates.
The affected policies are:
- Clarica Permanent CII, Series 2001 and 2003. Sales period: March 26, 2001 to July 2, 2004
- SunSpectrum Permanent CII, Series 2004. Sales period: July 2, 2004 to September 17, 2012
This adjustment is the result of our regular review of in-force adjustable insurance products. We’re adjusting cancellation values primarily because of our updated outlook on mortality and expenses. We’ve had fewer critical illness insurance claims than expected, especially at older issue ages.
No. Most affected policies will experience a decrease in cancellation value, but approximately 39% of policies will experience either no change or an increase.
The adjustment will take effect on each affected policy’s 2027 policy anniversary, beginning January 1, 2027. Adjustments will be made throughout 2027 as affected policies reach their policy anniversary.
Starting mid-November 2026, Clients will receive a personalized letter approximately 60 to 90 days before their policy anniversary.
Depending on the policy, the Client letter will explain that their cancellation value will increase, remain unchanged, decrease, or decrease and may result in the policy lapsing sooner.
Yes. Clients with no change will still receive a letter reminding them that the cancellation value can be adjusted in the future.
Clients will see their updated cancellation value on their 2027 policyholder statement.
Impacted Client listings will be available starting October 27, 2026. On Suncentral, advisors with impacted Clients will receive their Client listings through Activity Centre.
Client listings will be shared via Activity Ccentre.
Yes. Advisors will receive a summary and notification in Activity Centre when a letter is mailed to Clients.
Advisors should review impacted Client listings when they become available, update any Client addresses marked invalid on the listing, and connect with impacted Clients to discuss the change and help assess their coverage needs.
Advisors should update any Client addresses marked invalid on the listing so Clients can receive their personalized letter.
Client letter samples will be available for the different outcomes: cancellation value increase, no change, cancellation value decrease, and cancellation value decrease with earlier lapse risk. Additional advisor communications will also be available as listed in the resource centre.
General questions can be directed to the Customer Care Centre at 1-800-800-4786.
For policy-specific questions, advisors should use Request Centre - Critical Illness Insurance Inquiry.
Key dates:
- October 27, 2026: Impacted Client listings become available.
- Mid-November 2026: Client letters begin mailing.
- January 1, 2027: Adjustments begin taking effect on affected policies’ 2027 policy anniversaries.
- Throughout 2027: Adjustments continue as affected policies reach their policy anniversary.
Contact us
For general questions, call the Customer Care Centre at 1-800-800-4786.
For policy-specific questions, use Request Centre - Critical Illness Insurance Inquiry