PHI and HCC premium rate change

2024 rate reprice

What’s happening?

Effective April 1, 2024, we’re repricing PHI and HCC. These rate changes will apply to in-force and new business for all provinces.

Why are we repricing?

The reason for the repricing is due to an ongoing increase in claims paid to Clients.  We have not increased our in-force policies since January 2021. The last time we increased rates for new business was in February 2022.

Is there a rate increase for everyone?

No. Certain older age bands will not receive a rate change, and Series 3.0-6.0 for HCC will remain unchanged.  However, many existing Clients will experience a premium increase at their policy renewal, by 14% on average for PHI and 5% on average for HCC. We’ve capped the increases at:

• 20% for Clients aged younger than 65, and 
• 10% for Clients aged 65 and older.  

For new business, there will be an average increase of 17% for PHI, and 18% for HCC.

In-force business

Will there be a rate change every year?

It depends. HCC and PHI rates are reviewed every year. We consider a variety of factors, including claims, interest rates, other investment returns, lapses, taxes and other expenses. Based on the results, we might decide to keep the rates unchanged or to implement a rate change for some or all Series and age bands. The biggest factor affecting this increase is claims experience.

When will I learn about a Client’s new premium amount?

The Client will be informed of the new premium amount on the annual renewal notice. A copy will be mailed to your office.

What should I say to a Client asking why we are repricing?

The reason for the reprice is due to an ongoing increase in claims. Claim patterns have changed, and the increased activity shows that Clients see value in their plans and are making good use of their coverage. While we review PHI and HCC rates each year, we haven’t increased rates for in-force policies since January 2021.

What if a Client can’t afford their policy anymore?

Before requesting any plan changes, make sure to review the Client’s needs. There may be options to reduce their premiums by moving to a lower priced plan. For example, for PHI, from Enhanced with Dental to Standard with Dental. Or, some Clients might currently have optional benefits, such as Dental or Semi-private hospital coverage, that they could decide to remove to reduce their monthly premium. Email the admin team at PERHLTH@Sunlife.com about possible options available for the Client.

How can a Client request to decrease their plan level or remove optional benefits?

A Client may decrease their coverage or remove an option by sending us a written notification of the request.  Clients will need to email a signed and dated letter in PDF format to PERHLTH@Sunlife.com.

What do I say to a Client who would like to cancel their policy?

Remind the Client of the product benefits and offer to review their needs to ensure the protection is as relevant now as when they purchased the product. If ongoing affordability is the reason for the cancellation, explain the ways they could potentially lower their premiums or adjust their plan.

When were past Series sold?

PHI

Series 1- from Oct 1997 to Aug 01, 1999

Series 2 – from Aug 2, 1999 to June 30, 2000

Series 3 – from Jul 1, 2000 to Aug 31, 2004

Series 4 – from Sept 1, 2004 to Aug 31, 2005

Series 5 – from Sept 1, 2005 to Aug 31, 2008

Series 6 – from Sept 1, 2008 to Aug 31, 2009

Series 7 – from Sept 1, 2009 to Aug 31, 2014

Series 8 – from Sept 1, 2014 to Feb 20, 2022

Series 9 – from Feb 21, 2022 - ongoing

HCC

Series 1 - Prior to 2003

Series 2 – From April 1, 2001 to Sept 7, 2003

Series 3 - From Sept 8, 2003 to Aug 31, 2004

Series 4- From Sept 1, 2004 to Aug 31, 2005

Series 5 - From Sept 1, 2005 to Aug 31, 2008

Series 6 - From Sept 1, 2008 to Aug 31, 2009

Series 7 - From Sept 1, 2009 to Aug 31, 2014

Series 8 - From Sept 1, 2014 to Feb 20, 2022

Series 9 - From Feb 21, 2022 - ongoing

New business

Where can I find PHI and HCC product information?

Review the advisor guide and the 10 things that you need to know about PHI and HCC document.

Where can I look at the new rates?

New rates cards will be available by April 1, 2024. We will add them to the product page when they’re available.

What Client support materials are available?

Refer Clients to the PHI or HCC client guide.  This point-of-sale guide can help Clients understand the features and benefits of products. It’s available in English, French and simplified Chinese.

What is the last day I can submit an application prior to the rate change?

Online applications signed and received on or before March 31, 2024 will be processed using the current rates. Online applications received on or after April 1, 2024 will be processed using the new rates in effect.

Paper applications signed before April 1, 2024, must be received before April 7, 2024, otherwise we’ll process them using the new rates in effect on April 1, 2024.

Applications processed with the current rates will receive a rate increase at their first policy anniversary.