Permanent Insurance

Sun Permanent Life

Sun Permanent Life is a simple permanent protection solution. It offers guaranteed premium payment options, including three limited pay options. Sun Permanent Life provides  guaranteed cash values beginning in policy year 3 and a guaranteed death benefit. The guaranteed return of premium on death optional benefit, available with the 15 and 20 pay options, gives Clients the opportunity for an increasing death benefit, with all premiums paid included in the death benefit.

Product overview

Coverage options
  • Single life
  • Joint first-to-die, two lives - includes Survivor benefit and Automatic survivor benefit
  • Joint last-to-die premiums to second death, two lives
  • Joint last-to-die premiums to first death, two lives
Issue limits

  • Minimum:
    Single life:
    Ages 0 to 64: $25,000 to $25,000,000
    Ages 65 to 85: $10,000 to $25,000,000
    Joint:
    All ages: $25,000 to $25,000,000
    Coverage amounts under $25,000 are available if you’re converting or exercising the full amount.

  • Maximum: $25,000,000

Special quotes available for cases over $ 25,000,000.
Premium rates for amounts above $15,000,000 are subject to reinsurance and underwriting reviews.
Premium options and issue ages Premium option
Life Pay
10 pay
15 pay
20 pay		 Single
0 - 85
0 - 85
0 - 85
0 - 80		 Joint
18 - 85
18 - 85
18 - 85
18 - 80
Rate bands
  • $0 to $49,999
  • $50,000 to $99,999
  • $100,000 to $249,999
  • $250,000 - $499,999
  • $500,000 - $999,999
  • $1,000,000+

Special quotes are available for amounts in excess of $10,000,000.
Premium payment mode and policy fees Premium mode
Annual
Monthly		 Policy fee
$25
$2.25
Smoking status
  • Non-smoker, smoker or juvenile
Guaranteed cash values
  • Beginning in year three
  • Included with all coverage and premium options
Premium funds
  • Withdrawable premium fund
Policy loans
  • Minimum loan amount: $250
  • Maximum loan amount: The net cash value less one year's interest
Non-forfeiture options
  • Automatic premium loan
  • Reduced paid-up
Optional benefits
  • Guaranteed return of premium on death benefit (15 and 20 pay options only)
  • Accidental death benefit
  • Guaranteed insurability benefit
  • Total disability waiver benefit
  • Owner waiver death benefit (death, disability or death and disability)
  • Child term benefit
  • Business value protection benefit
  • Term insurance benefit
    • T10, T10 with Renewal protection, T15, T20, T30
Special features
  • Living benefit

Guaranteed return of premium on death benefit (ROPD)

  • Available with the guaranteed 15 and 20 pay premium options only.
  • All premiums paid for the policy (including premiums for optional benefits) are included in the death benefit paid to the beneficiary.
  • Once premiums are paid the increase in death benefit is vested and guaranteed. Premiums waived as a result of a Total disability waiver or Owner waiver benefit are not included in the death benefit.
  • Issue ages: 0-50
  • Availability: Single Life / Joint first-to-die / Joint last-to-die
  • This benefit isn't available: On joint plans if any other optional benefit is selected
    • On single life plans:
      • If a Term insurance benefit on a on additional life is selected
      • If the Business value protection benefit is selected
      • If Total disability waiver is selected
      • If Guaranteed insurability is selected
      • If Accidental death benefit is selected
      • If Child term benefit is selected
      • If Owner waiver benefit is selected
    • On both single and joint plans
      • After issue
      • Or for substandard risk

Accidental death benefit (ADB)

  • Issue ages: 0 - 65
  • Availability: Single Life/Joint first-to-die/Joint last-to-die
  • Minimum benefit amount: $10,000
  • Maximum benefit amount: Lesser of two times the insurance amount, including Term insurance benefits, and $1,000,000 ($250,000 for ages 0-17)
  • Expires at the policy anniversary nearest the insured person's 70th birthday
  • Costs are level and are payable until the benefit expires
  • Can be added after issue at the policy anniversary only

Child term benefit (CTB)

  • Issue ages: 18 - 55
  • Availability: Single Life/Joint first to die/Joint last to die
  • Child eligibility: 0-18 based on age nearest birthday
  • Covers any child named on the application (born, adopted and stepchildren) and automatically covers children born or legally adopted after the date of application. Stepchildren may be added after issue through an application.
  • Minimum benefit amount: $10,000
  • Maximum benefit amount: $30,000 total across all CTB coverages with Sun Life
  • Premiums are payable to the earlier of 20 years and the policy anniversary nearest the insured person's 70th birthday.
  • Benefit expires at the policy anniversary nearest the base insured person's 70th birthday.
  • Between the child's 18th and 25th birthdays, the owner will have the right to buy additional life insurance on the life of the child for up to 10 times the amount of the benefit.
  • Can be added after issue at policy anniversary only.

Total disability waiver benefit (TDB)

  • Issue ages:  0 - 55
  • Availability: Single Life/Joint first to die/Joint last to die
  • Expires at the policy anniversary nearest the insured person's 60th birthday.
  • Benefit will waive up to $50,000 of annual premium/COI across all Sun Life policies.
  • Premiums will be waived as long as the insured is disabled.
  • Cannot be added after issue.

Owner waiver death benefit

  • Issue ages: 18 - 60
  • Availability: Single Life/Joint first to die/Joint last to die
  • The owner must be different than the insured person.
  • Expires at the policy anniversary nearest the owner's 70th birthday.
  • Benefit will waive up to $50,000 of annual premium across all Sun Life policies.
  • Premiums will be waived as long as premiums are charged for the insurance amount and optional benefits in the policy when the owner dies.
  • Not available when the Business value protection benefit has been selected.
  • Cannot be added after issue.

Owner waiver disability benefit

  • Issue ages: 18 - 55
  • Availability: Single life/Joint first to die/Joint last to die
  • The owner must be different than the insured person.
  • Expires at the policy anniversary nearest the owner's 60th birthday.
  • Benefit will waive up to $50,000 of annual premium across all Sun Life policies.
  • Premiums will be waived as long as the owner is disabled.
  • Not available when the Business value protection benefit has been selected.
  • Cannot be added after issue.

Owner waiver death and disability benefit

  • Issue ages: 18 - 55
  • Availability: Single life/Joint first to die/Joint last to die
  • This optional benefit combines the coverages provided by the Owner waiver death and Owner waiver disability benefits, at a discount when compared to their individual benefit premiums.

Guaranteed insurability benefit (GIB)

  • GIB allows policy owners to purchase additional life insurance on insured persons at their attained age without providing evidence of insurability.
  • Issue ages: 0 - 45
  • Availability: Single life only
  • Minimum option amount:  $20,000
  • Maximum option amount:  Lesser of insurance amount (including Term insurance benefit and Enhanced insurance amount) and $300,000 across all Sun Life policies.
  • Elections are available every 3 years and within 31 days of a special event (marriage, birth/legal adoption of a child).
  • A maximum of 8 elections up to a maximum face amount of $2,400,000 are available.
  • Expires at the earlier of the policy anniversary nearest the insured person's 55th birthday or once the maximum amount of elections have been made.
  • Not available if the Business value protection benefit has been selected.
  • Not available after issue or for substandard risk.

Business value protection benefit (BVPB)

  • Allows business owners to purchase additional insurance as their business grows without providing medical evidence.
  • Issue ages: 18 - 65
  • Availability: Single Life only
  • Minimum option amount: $250,000
  • Maximum option amount: $2,500,000 across all Sun Life policies
  • Cumulative maximum equal to the lesser of $10,000,000 or 4 times the option amount.
  • Options can be exercised annually within 31 days of the policy anniversary for the first 10 years.
  • Expires at the earlier of the 10th policy anniversary or once the maximum amount of elections have been made.
  • Not available if the Owner waiver or Guaranteed insurability benefits have been selected.
  • Not available after issue or for substandard risk.

Term insurance benefit

Issue ages: Base Life Additional life
T10: 18 - 75 0 - 75
T15: 18 - 70 0 - 70
T20: 18 - 65 0 - 65
T30: 18 - 55 0 - 55
  • Availability: Single life/Joint first-to-die/Joint last-to-die
  • Expires on the policy anniversary nearest the insured person's 85th birthday, or 85th birthday of the oldest insured.
  • Minimum benefit amount: $50,000
  • Maximum benefit amount - Base life: $15,000,000 minus the basic insurance amount per insured.
  • Maximum benefit amount - Additional life: $15,000,000 per insured.
  • All or part of the TIB death benefit is convertible to permanent life insurance without additional medical evidence, up to the policy anniversary nearest the insured's 75th birthday.
  • Available after issue, subject to underwriting requirements.

This benefit is offered on Sun Life Assurance Company of Canada life insurance products and is a non-contractual arrangement that we may approve at our discretion on a case-by-case basis. If an insured person is diagnosed with a terminal illness, an application can be made by the policy owner for a lump sum advance of 50% of the insurance amount, to a maximum of $100,000. The lump sum, plus interest, is deducted from the death benefit when paid. This benefit follows the rules of the living benefit program in effect when the policy owner applies to receive the benefit.

Splitting Joint policies

We will now allow Clients to split their Joint life policies into new single life policies at attained age and current rates without providing new evidence of insurability. The following criteria must be met:

  • The request to split a Joint life plan must be received within 90 days of obtaining a signed legal separation, divorce or dissolution of business partnership.
  • Splitting of Joint plans will be available for currently sold Joint First-to-Die or Joint Last-to-Die permanent life insurance products, and for currently sold Joint First-to-Die Term life insurance products. Splitting of Joint plans will not be allowed on plans sold prior to January 1, 2017.
  • The new single life plans will be the same type of policy as the original Joint plan. If the same type of policy is not available, Sun Life will determine what type of plans can be issued.
  • The face amount of the new single life plans can be no greater than 50% of the original Joint life base plan or a proportional split if more than 2 lives were insured on the Joint plan.M
  • Premiums for the new plan(s) must be received at the time of application.
  • Upon splitting of the Joint plan, a full taxable disposition will occur. Any cash surrender value or fund value, less any outstanding loans or premiums, will be paid to the policy owner(s). This may result in tax implications, including increasing taxable income.

Sun Lifetime Alternative

Sun Lifetime  Alternative is a straightforward answer for permanent insurance protection. It offers affordable lifetime coverage with guaranteed level premiums for the first 10 years. After that, the premiums may be adjusted annually depending on mortality experience, intrest rates, investiment performance, expenses, taxes and other relevant factors, but a client will never pay more than the guaranteed maximim outlined in their contract.

Product Overview

In a recent review of Sun Lifetime Alternative, we've determined a pricing adjustment is required due to a decline in economic conditions since this product was originally introduced in September 2003. For clients who own this product, starting with the 2014 policy anniversaries, their Sun Lifetime Alternative premium will increase, as applicable under the terms of their contract.

There are two series of Sun Lifetime Alternative:

  • Series 2002 includes policies which were sold from 2002 to 2004
  • Series 2005 includes policies which were sold from 2005 and continue to be sold today for group conversions, term conversions and exercising options such as guaranteed insurability.

Series 2002

As outlined in the policy, Sun Lifetime Alternative has adjustable premiums after the 10-year guaranteed premium period and adjustable cash values. The decision for these policies was to increase premiums and make no change to the adjustable cash values.

Generally, the increases range from 15.5 per cent at the older issue ages to 27.5 per cent at the younger issue ages. As shown in the sample chart below, the premium increases are relatively low and will vary by risk class, issue age and smoking status.

Sun Lifetime Alternative Series 2002
Average monthly premium increases - $50,000 death benefit
Issue age 0-10 11-19 20-30 31-40 41-50 51-60 61-70
Male, non-smoker $3 $4 $5 $7 $12 $19 $29
Female, non-smoker $3 $3 $4 $6 $9 $16 $25
Male, smoker $5 $6 $7 $11 $18 $28 $39
Female, smoker $4 $4 $5 $8 $13 $20 $29

The death benefit for the principle insurance is guaranteed and, therefore, is not affected by this change. Premiums for any other benefits are guaranteed as outlined in their policy.

Series 2005

Since these policies are all still in the 10-year premium guarantee period until January 1, 2015, no adjustments to this series will occur at this time. We will re-assess this block based on the experience expectations at the time of our next review beginning in 2015.

How will customers find out about the increase in premium?

We will include an insert with the annual policyholder statement at the anniversary when the adjustment occurs. We will begin mailing information about these changes to clients next week, for those with a January 2014 anniversary date. The premium increase occurs on the policy anniversary between January 1, 2014 and December 31, 2014.

In addition to this insert, customers who pay by pre-authorized chequing (PAC) will also receive notification of the premium increase through their (PAC) notices.

Will I get a list of Sun Lifetime Alternative policies affected by these adjustments?

On December 9, 2013, you will receive an email list of the Sun Lifetime Alternative policies in your block of business. The email will include the policy number and the anniversary month/day so you can identify the policyholders who will be impacted by the premium increase.

Although these changes will affect the premium clients are required to pay, these policies continue to offer exceptional value.

Sun Lifetime Alternative is a straightforward answer for permanent insurance protection. It offers affordable lifetime coverage with guaranteed level premiums for the first 10 years. After that, the premiums may be adjusted annually depending on mortality experience, interest rates, investment performance, expenses, taxes and other relevant factors, but a client will never pay more than the guaranteed maximum outlined in their contract.

General rules

  • non-participating permanent product
  • available for group conversions and conversions from Sun One Year Term and SunTerm to 65
  • policy is paid up at age 100
  • $150 policy fee
Coverages Issue ages
single life single life: 0 - 65 (unless the group plan allows for conversions past age 65)

Maximum volume

  • $200,000 for group conversions (exceptions are available if group coverage permits)

Underwriting classes

  • non-smoker
  • smoker (standard)

Rates

Rates        Volume
Band 1      $0 - $99,999
Band 2      $100,000 - $249,999
Band 3      $250,000+

Additional benefits

(Note: When converting to Sun Lifetime Alternative, these benefits are available only if they were included on the policy being converted.) 

Accidental death
issue ages: 0 - 60
expiry: policy anniversary after age 70
minimum volume: $10,000
maximum volume: lesser of base amount or $250,000

Product features

Adjustable cash value

The adjustable cash value can increase or decrease. In some situations it may be zero, depending on Sun Life Financial's experience with investment performance, mortality, expenses, taxes and other relevant factors.

For example, let's assume that based on current experience,the adjustable cash value in year 5 is $3,600. However, if within the same time frame, investment returns on the overall portfolio of investments decrease by 1%, mortality worsens by 10% and expenses increase by 10%, then the adjustable cash value would be $3,200.

No portion of the adjustable cash value is guaranteed at any duration.

What is the adjustable cash value based on?

Adjustable cash value is based on the average yield of a block of investments that's called the average money fund.

The fund is a long-term fund, consisting primarily of government and corporate bonds, loans, mortgages, equities and real estate. Performance is not consistent because volatile equity earnings can impact the average rates.

Once the costs of issuing a policy are recovered, a portion of each premium is invested into the average money fund. The fund currently has assets of more than $6 billion Cdn that were bought over a number of years.

Policy loans

  • up to 75% of the adjustable cash value
  • minimum loan is $1,000

No cancellation fee

  • The client may cancel the coverage at any time without paying a fee.
  • Partial surrenders are not available.

Smoker/non-smoker rates

  • Anyone who has used ANY tobacco products (including cigarettes, cigars or cigarillos, pipes, chewing tobacco and marijuana) in the last 12 months is considered a smoker.
  • If the applicant is younger than age 20, the client pays a non-smoker rate.
  • When the insured person becomes age 21:
    • premiums remain non-smoker only if the client signs a non-smoking declaration form. (We will send a form to the client when they turn 21.)
    • premiums increase if the client is a smoker.

Group conversions

  • All group conversions will be issued as smoker unless the group plan coverage is non-smoker.
  • To change from smoker to non-smoker rates, evidence is required.
  • Only clients currently with non-smoker coverage will qualify for non-smoker rates without evidence.

An added incentive to quit smoking

Cash values differ for smokers and non-smokers to reflect the higher premiums that smokers are charged. If the client stops smoking and qualifies as a non-smoker, there is a partial refund of the adjustable cash value.

Additionally, the new non-smoker premium will be based on the client's age at issue.

Non-forfeiture options

Should the client not be able to make premium payments, these options can help prevent the policy from being terminated. These alternatives are available only if there is a buildup of the cash value in the policy.

Automatic policy loan

When a premium payment is missed, a loan is automatically taken against the adjustable cash value to pay overdue premiums and keep the policy active for as long as the cash value lasts. The amount of the automatic policy loan cannot be more than the adjustable cash value of the policy. We set the daily interest rate at the time the loan is taken. The rate may change annually. We add the accumulated daily interest to the balance of the policy loan at the end of each policy year. At that time, we notify the client of the outstanding balance. The client may repay the policy loan at any time.

Reduced paid-up at year 20

The client may choose to stop making payments after 20 years and the policy will remain in force for life with a reduced death benefit. The death benefit is determined by the net cash value available at the time a written request to stop payments is made. When changing to a paid-up plan, any additional benefits under the policy end - only the reduced principal insurance death benefit remains.

Paid-up extended term at year 20

The client may choose to stop making payments after 20 years and the policy will remain in effect for an extendedterm with the same principal death benefit. The length of the term insurance is determined by the net cashvalue available at the time a written request to stop payments is made.

When changing to a paid-up plan, any additional benefits under the policy end - only the principal insurance deathbenefit remains for a limited period of time.

Sun Lifetime Alternative is a permanent product solution available only for the conversion of Sun Life Financial group insurance coverage and conversions from Sun One Year Term or SunTerm to 65. The plan provides lifetime coverage and also offers a cash value. Premiums are guaranteed for the first 10 years with a guaranteed maximum premium after the first decade.

The coverage or benefit being converted will determine the base insurance coverage and benefits available to you. Additional insurance coverage or benefits illustrated will be subject to underwriting review and approval.

Plan description

Sun Lifetime Alternative is a permanent product with a guaranteed 10-year premium then premiums may be adjusted annually subject to a guaranteed maximum.

Plan details

  • Issue ages 0 to 65
  • Paid up at age 100
  • Death benefit is level and guaranteed

Additional benefits

  • Accidental death benefit

The coverage or benefit being converted will determine the base insurance coverage and benefits available to you.

Adjustable cash values

Cash values aren’t guaranteed. They can increase or decrease depending on Sun Life Financial's experience with investment performance, mortality, expenses, taxes and other relevant factors.

Policy loans

  • Up to 75% of the adjustable cash value
  • Minimum loan is $1,000

Non-forfeiture options

Sun Lifetime Alternative provides the client with several alternatives that can prevent the policy from terminating when a premium is not paid.

  • Automatic premium loan: A loan is made against the adjustable cash value to pay overdue premiums and keep the policy active, as long as the cash value lasts.
  • Reduced paid up at year 20: Your client may stop making payments after 20 years and the policy, with reduced benefits, will remain in force for life.
  • Paid extended term available at year 20: Your client may stop making payments after 20 years and the policy, with the same benefits, will remain in effect for an extended term.

Sample policy

The following policy wording is provided solely for your convenience and reference. It is incomplete and reflects only some of the general provisions that may be found in some of our insurance policies. We periodically make changes to policy wording and therefore this incomplete sample may not duplicate the wording of any actual issued policy. It is not to be construed or interpreted in any manner as a contract or an offer to contract. The actual policy issued to any given client will govern that relationship.

printable copy: Sun Lifetime Alternative (one insured person)

Administrative information

The products guides have been written for advisors and assume an exsisting level of product knowledge. They are intended as information only, for the convenience of the advisors . Sun Life Assurance Company of canada and its affiliated companies will not be bound by or liable for any inaccurate, incomplete or out of date information or any loss or damages or actions taken in reliance on this information.

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