Life Insurance Portfolio AT A GLANCE SUN LIFE FINANCIAL

Transcription

1 ADVISOR USE ONLY Life Insurance Portfolio AT A GLANCE SUN LIFE FINANCIAL SunTerm Sun Limited Pay Life SunUniversalLife and SunUniversalLife Max Sun Par Protector Sun Par Accumulator You can meet your clients unique needs with a wide range of life insurance solutions from Sun Life Financial. This guide compares the features and benefits available with Sun Life Financial s life insurance product portfolio to help you find the right temporary or permanent solution to best meet your clients needs. Life s brighter under the sun

2 WE VE PROVIDED THIS INFORMATION AS AN OVERVIEW OF THE FEATURES AND BENEFITS AVAILABLE WITH SUN LIFE FINANCIAL S LIFE INSURANCE SOLUTIONS. FOR FURTHER DETAILS ON EACH OF THESE PRODUCTS, PLEASE REFER TO THE ADVISOR GUIDE OR POLICY. SunTerm SunTerm provides clients with affordable, temporary protection for short-term needs. As clients needs change, they will have the flexibility to adjust their insurance to meet their requirements in the future. With SunTerm, underwriting classes 1, 2 and 4 are not be available for clients who are age nearest 40 or less at issue AND are applying for a coverage amount of less than $500,000. Target markets May be ideal for clients who: need to cover a temporary risk require a flexible product that can be increased as their needs change (subject to underwriting) want the option to convert to permanent insurance as their needs change May be ideal for business clients who are looking to: share a need to cover a larger temporary risk match their term length to a business plan Term lengths and issue ages Coverage options Multiple coverages Single life and Joint first-to-die: 10 year term: year term: year term: year term: Single life Multiple lives: Coverage is based on one insured person Maximum of five single lives or four single lives and The death benefit is payable on the death one joint life per policy of that insured person Can be added at any policy anniversary subject Joint first-to-die: to underwriting Covers two lives Cover multiple lives under one policy Survivor benefit and Automatic survivor benefit included Splitting joint coverage into two single policies is not permitted Up to three additional coverages can be added at any policy anniversary (each must have a different term length) Maximum of nine coverages per life or 15 coverages per policy Rate bands $250,000 - $499,999 Underwriting classes Renewability and conversion availability Special conversion Policy fees and premium payment options Optional benefits $1,000,000 - $4,999,999 $5,000,000 - $15,000,000 1 Class 1: no nicotine for 60 months, excellent health and lifestyle Class 2: no nicotine for 24 months, very good health and lifestyle Class 3: no nicotine for 12 months, good health and lifestyle Class 4: any nicotine use, good health and lifestyle Class 5: any nicotine use, fair health and lifestyle Note: occasional large cigar smokers (12/year) will be considered class 3 Guaranteed renewable until policy anniversary nearest age 85 (oldest person insured for joint-first-to-die) Guaranteed convertible until the policy anniversary nearest age 75 (oldest person insured for joint-first-to-die) SunTerm 10 and SunTerm 15 policies issued after February 2, 2015 are eligible to convert to either a SunTerm 20 or a SunTerm 30 2 Premium mode: Annual Monthly Renewal protection benefit Child term benefit Accidental death benefit Total disability waiver benefit 1 Amounts in excess of $15,000,000 are available through a special quote. 2 Conversion is subject to age limits and must be done prior to the 5th policy anniversary. Policy fee: $25.00 $2.25 Owner waiver disability benefit Guaranteed insurability benefit Business value protection benefit Partner protection benefit 2

3 Sun Limited Pay Life Sun Limited Pay Life is a permanent life insurance product, offering a guaranteed cost of insurance (COI) payable for a limited period of time, with guaranteed cash surrender values and a guaranteed death benefit. With this solution, clients can choose a payment period to match their needs. Target market May be ideal for clients age 25 to 50 looking for: life insurance for their children or grandchildren estate and financial planning guaranteed minimum payments for a guaranteed period of time the option to invest additional funds to increase their death benefit, or for tax-deferred savings growth Premium payment options 3 and issue ages 10-pay: pay: pay: 0-65 Pay to age 65: 0-44 Coverage options Single life Joint last-to-die 4 COI bands $25,000 - $49,999 $50,000 - $99,999 $100,000 - $249,999 Note: Special quotes may be available for cases over $10,000,000. $250,000 - $499,999 $1,000,000 - $10,000,000 COI Guaranteed cash surrender values Premium tax Death benefit Guaranteed level COI for the duration of the payment period Guaranteed to cease at the end of the selected payment period Available on policy surrender Starts at the fifth policy anniversary Not included as part of the death benefit 2% guarantee for all provinces Face plus fund Guaranteed cash surrender values are not paid as part of the death benefit Underwriting classes Non-smoker Smoker Investment account options Optional benefits Non-guaranteed investment accounts: 6 index accounts 10 managed accounts Total disability Owner waiver Guaranteed investment accounts: daily interest account guaranteed interest account (1-, 3-, 5-, 10- and 20-year terms) long-term managed portfolio account Guaranteed insurability Child term Special features Cash accessibility available through policy loans and withdrawals No policy fees or surrender charges Living benefit 3 These limited payment periods are guaranteed only if the client makes the minimum payment throughout the payment period and the client selects a guaranteed investment account option. If clients choose index or managed accounts and the interest earned is negative, or if they make any withdrawals or loans, they will be required to make additional payments to keep their policy in effect. The minimum payment required is the monthly cost of insurance plus the guaranteed 2% premium tax. 4 Not available for Pay to age 65, and both lives must be at least 18 for a joint life policy. There is a $50,000 minimum for joint last-to-die. 3

4 SunUniversalLife and SunUniversalLife Max SunUniversalLife is a permanent life insurance policy that includes insurance benefits on one or more insured persons with several investment options available for your clients. SunUniversalLife Max builds on the strengths of SunUniversalLife and is suited for very affluent clients who want to maximize their fund values, while offering more funding capacity in the early years. Target market Coverage options May be ideal for clients: age 50+ who need $1,000,000 of life insurance protection who have maximized their RRSPs who are business owners looking to maintain the value of their business Single life Joint first-to-die, up to five lives per basic insurance benefit Joint last-to-die, up to two lives per basic insurance benefit Multiple life, up to five single lives, or four single lives and one joint life (maximum nine lives per policy) Issue ages Yearly renewable term (YRT) COI: 0-64 Level COI: COI bands $100,000 - $249,999 $250,000 - $499,999 Joint life: Indexed face amount: 0-70 $1,000,000 - $5,000,000 Note: COI band for under $100,000 is available for conversion only. Special quotes may be available for cases over $5,000,000 Death benefit options Level insurance amount Insurance amount plus fund Fund builder Indexed insurance amount (Consumer Price Index or fixed index to a maximum of 8%) COI Guaranteed YRT Guaranteed level Underwriting classes Non-smoker Smoker Surrender charges Investment account options No investment bonus option SunUniversalLife: applicable for 10 years for each coverage (based on a multiple of the insurance factor) Guaranteed accounts: daily interest account (DIA) guaranteed interest account (GIA) Must be chosen at time of sale COI discount not available SunUniversalLife Max: applicable for 10 years for each coverage (based on a multiple of the insurance factor) but higher in the first five policy years 11 index accounts with varied level of risk 25 managed accounts with varied level of risk Lower management fees (indexed and managed accounts) Higher interest rates credited for DIA and GIA Investment bonus option COI discount Must be chosen at time of sale Bonus starts at the end of year two, and credits 0.40% annually on the policy anniversary Higher management fees than with the no bonus option Added to the activity account Available only for policies with an investment bonus Reduces the COI based on the funding ratio 4 and the insured person s age when they purchase the policy For discount calculation purposes, the funding ratio is vested at the end of the ninth year for the life of the policy Optional benefits Special features Term insurance Total disability Owner death Owner disability Access to the policy fund when disabled Early death benefit Accidental death insurance Guaranteed insurability Executive guaranteed insurability benefit Coverage death benefit Joint first-to-die survivor benefit and automatic survivor benefit Living benefit 4 Funding ratio is the net insurance payments (total payments minus the insurance charges for the optional benefits, withdrawals and market value adjustments) divided by the insurance factor accumulated over completed years. 4

5 Sun Par Protector Sun Par Protector is a permanent participating whole life insurance policy that provides high long-term total cash value and death benefit growth. Depending on the dividend option chosen, a client s policy can grow as their needs change. Sun Par Protector is suited for affluent clients interested in ensuring their estate transfers intact to their beneficiaries, or who are looking for the flexibility to access the policy s cash values to supplement their retirement income. Target market Guaranteed premium payment options and issue ages May be ideal for clients age 45 to 60 looking for: permanent participating coverage that provides guarantees with opportunities for growth and flexibility estate protection an opportunity for long-term, tax-preferred cash value growth ways to enhance their cash flow during their retirement years Life pay: 0-80 Pay to age 65: pay: 0-65 Coverage options Single Joint first-to-die 5 Joint last-to-die 5, premiums to last death Joint last-to-die 5, premiums to first death Premium bands $50,000 - $99,999 $100,000 - $249,999 $250,000 - $499,999 $1,000,000 - $10,000,000 6 Dividend options Guaranteed cash value Paid-up additional insurance Annual premium reduction Dividends on deposit Cash payment Typically begin at the end of year five Enhanced insurance 10-year guarantee lifetime guarantee Policy loans Non-forfeiture option Up to 100% of the total cash value, less one year s interest, less any existing indebtedness may be borrowed Automatic premium loan available, following the grace period Reduced paid-up life insurance Underwriting classes Non-smoker Smoker Plus premium benefit Optional non-par benefits Available with all guaranteed premium payment options: Life pay pay to age pay Term insurance 7 : 5-, 10-, and 20-year renewable convertible terms Child term insurance Accidental death insurance Total disability Available with the following dividend options: paid-up additional insurance enhanced insurance Total disability juvenile; automatically takes effect at age 21 Owner waiver on disability Owner waiver on death Guaranteed insurability benefit Special features Joint first-to-die survivor and automatic survivor benefit available if equivalent single age is less than 65 Living benefit 5 Both lives must be 18 years of age or older. 6 Special quotes are available for cases over $10,000, The term insurance benefit is not available if the base insured is less than 18 years of age. 5

6 Sun Par Accumulator Sun Par Accumulator is a permanent participating whole life insurance policy that provides higher cash values in the early years than Sun Par Protector. Depending on the dividend option chosen, a client s policy can grow as their needs change. Sun Par Accumulator is suited for affluent clients interested in accessing cash values in the early years of their policy to bridge a retirement income gap, while ensuring there is a death benefit in place to protect their estate. Target market Guaranteed premium payment options and issue ages May be ideal for affluent clients age 50+ looking for: early cash values coupled with the benefits of long-term growth protection for their business with the added benefit of high early cash values, coupled with premium flexibility May be ideal for pre-retirees looking for: estate protection combined with cash values they can access throughout their lifetime Life pay: pay: Coverage options Single life Joint first-to-die 8 Joint last-to-die 8, premiums to last death Joint last-to-die 8, premiums to first death Premium bands $250,000 - $499,999 $1,000,000 - $10,000,000 9 Dividend options Guaranteed cash value Paid-up additional insurance Annual premium reduction Typically begin at the end of year one Dividends on deposit Cash payment Policy loans Non-forfeiture option Up to 100% of the total cash value, less one year s interest, less any existing indebtedness may be borrowed Automatic premium loan available, following the grace period Reduced paid-up life insurance Underwriting classes Non-smoker Smoker Plus premium benefit Available with the Life pay guaranteed premium payment option Available with the paid-up additional insurance dividend option Optional non-par benefits Term insurance: 5-, 10-, and 20-year renewable convertible terms Child term insurance Accidental death insurance Total disability Owner waiver on disability Owner waiver on death Guaranteed insurability Special features Joint first-to-die survivor and automatic survivor benefit available if equivalent single age is less than 65 Living benefit 8 Both lives must be 18 years of age or older. 9 Special quotes are available for cases over $10,000,000. 6

7 NOTES 7

8 We re here to help We ve been a trusted and reliable company for over 145 years. As a leading international financial services organization, we continue to build on that strong foundation with a focus on market-leading products, expert advice and innovative solutions. Our team of insurance- and investment-focused sales directors, and living benefits, and advanced tax and estate planning specialists understand your needs and work with you to help you make the best decisions. Contact your Sales Director or visit today. We re dedicated to helping Canadians achieve lifetime financial security. Life s brighter under the sun Sun Life Assurance Company of Canada is a member of the Sun Life Financial group of companies. Sun Life Assurance Company of Canada,