Withdrawable Premium Fund

What is the withdrawable premium fund (WPF) and how does it work?

The WPF provides Clients with the opportunity to prepay their premiums. The balance in the WPF earns interest based on short-term interest rates determined by Sun Life. Clients can withdraw money from the WPF at any time subject to minimums based on our current administrative practices. The maximum balance in the WPF is set by us and can change over time. Money inside the WPF is used to pay any outstanding premium. The balance of the WPF will be paid out on surrender of the policy or death of the insured person.

Products that have a withdrawable premium fund

Individual

Group
Sun Permanent Life Sun Term to 65
Sun Participating Life - Sun Par Protector II Sun 1 Year Term
Sun Participating Life - Sun Par Accumulator II N/A

Considerations when deciding if the WPF is beneficial for your client

  • The WPF is held outside the policy and is non-tax-exempt
  • Interest earned in the WPF is taxable
  •  Depositing large sums of money in the WPF may not be in the Clients best interests as they may be able to earn more interest in a high interest savings account or other investment vehicle
  • The WPF interest rate is subject to change at anytime
  • The current WPF guidelines are administrative only (not contractual) and subject to change at anytime

For questions, please contact Sales Desk salesdesk@sunlife.com