Sun RHA New Business

New business Sun RHA reprice

  • New business rates for Sun Retirement Health Assist (Sun RHA) are changing on January 1, 2023.
  • Premium changes will range from an increase of 7.7% at younger ages to a decrease of 8.2% at older ages.
  • Some Clients can save by purchasing coverage before this date as they’ll only receive this reprice once their five-year guarantee period ends.

Clients who would see a decrease by purchasing after January 1 may still want to buy now. They'll avoid risks to their insurability, and can plan ahead knowing their new, lower rate.

What’s happening and why

Click to expand for everything you need to understand the impact of these changes to you and Clients.

Why are premiums changing?

Sun RHA rates are adjustable and reviewed regularly. We look at various factors, including claims, interest rates, investment returns, lapses, expenses and taxes.

Of the factors listed above, the following have impacted this reprice.

Factors having a positive impact on rates

  • Lapse experience has been favorable
  • Fewer claims than anticipated

Factors leading to increased premiums:

  • increased claims costs - increases in life expectancy means claims will last longer than we expected because people are living longer than ever;
  • low interest rates - although rates did start to increase in 2022, they had been low for over 10 years and this affects the money we’ve invested to pay future claims.

The following table shows the premium changes by issue age. Changes range from an increase of 7.7% at younger ages to a decrease of 8.2% at older ages.

Premium changes depend on these 2 factors:

  • the age of the insured person at the time of purchase
  • the birth sex of the insured person
Issue age Male Female
45 7.2% 1.0%
46-50

7.7%

 4.1%
51-55 5.5% 1.9%
56-60 5.0%

1.1%
61-65

5.2%

 -0.2%
66+

-2.3%

 -8.2%

Effective January 1, 2023, we’re making changes to Sun Life Retirement Health Assist rates.

To ensure a smooth transition, please take a moment to review the following rules:

Processing your application

Application Status What Rates Will Apply?
Signed before January 1, 2023 We’ll process applications using rates in effect before January 1, 2023
Signed on or after January 1, 2023 We’ll process applications using the rates in effect on January 1, 2023
Signed on or after January 1, 2023, with a backdate request for a date before January 1, 2023 We’ll process applications using the rates in effect on January 1, 2023
Signed before January 1, 2023, and
settled, and
within the 10-day free look

We would have issued the policy using rates in effect before January 1, 2023

If it is in the Client’s best interest to receive the new rates, we’re allowing a reissue.

Submit an email request to the New Business area by January 31, 2023, with your application number.
Signed before Jan 1, 2023, and
settled in December 2022, and
past the 10-day free look period

We would have issued the policy using rates in effect before January 1, 2023

If it is in the Client’s best interest to receive the new rates, we’re allowing a reissue.

Submit an email request to the New Business area by January 31, 2023, with your application number.

For more information, please contact your Regional Sales Director or Advisor Experience Team.

Why Sun RHA?

Sun RHA remains a good option for Clients seeking an LTCI solution. It offers an income-style benefit designed to help offset the financial impact of needing long-term care during retirement. It can be an important part of retirement planning conversations because it can help pay for the care Clients will want and expect when they need it.

The advisor toolkit can help you have the conversation with Clients.

Advisor toolkit

See how fast Clients can recoup Sun RHA premiums once they go on claim. Contact a Sun Life sales representative to learn about our RHA Breakeven Excel tool.

salesdesk@sunlife.com

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