Appreciation is partnership comprehensive strategic 2015 Group Benefits Advisor Appreciation Program The power of one bonus program to reward your business Life s brighter under the sun Group Benefits
2015 Group Benefits Advisor Appreciation Program Advisor eligibility All licensed advisors except Managing General Agents (MGAs) within Canada and Investors Group advisors are eligible to qualify for an annual incentive payment under the Sun Life Financial 2015 Group Benefits Advisor Appreciation Program. New business bonus To qualify for the new business bonus, your Sun Life Financial SunSolutions and SunAdvantage sales premium and case count from January 1 st to December 31 st, 2015 are combined and must satisfy the combined threshold outlined below. SunSolutions new business * Total new sales premium Total new sales case count + SunAdvantage new business * Total new sales premium Total new sales case count Combined new business bonus thresholds: To qualify for bonus, your new business block as of December 31, 2015 must satisfy the following two thresholds: 1. Total combined new sales premium greater than or equal to $75,000 2. Total combined new sales case count greater than or equal to three cases It no longer matters what mixture of SunSolutions or SunAdvantage new business has been sold, as long as when the premiums and number of cases are combined, they meet or exceed the combined new business bonus thresholds. Examples of what could qualify include: Two SunAdvantage cases and one SunSolutions case sold with a combined sales premium greater than or equal to $75,000 Three SunSolutions cases and no SunAdvantage cases sold with combined sales premium greater than or equal to $75,000 Three SunAdvantage and no SunSolutions cases sold with a combined sales premium greater than or equal to $75,000 2015 Group Benefits Advisor Appreciation Program 1
Once you satisfy the combined new business bonus thresholds, the appreciation award for your SunSolutions and SunAdvantage sales premium respectively will be based on the following bonus scales: SunSolutions 2015 Qualifying new sales premium SunAdvantage 2015 Qualifying new sales premium SunSolutions Bonus Scale Qualifying SunSolutions new sales premium is applied to the scale below From To Bonus Rate $1 $999,999 3.20% $1,000,000 + 4.50% Note: The portion of total Sales premium in excess of $1,000,000 is bonused at 4.50% SunAdvantage Bonus Scale Qualifying SunAdvantage new sales premium is applied to the scale below From To Bonus Rate $1 $99,999 1.20% $100,000 $124,999 1.45% $125,000 $149,999 1.70% $150,000 $174,999 1.95% $175,000 $199,999 2.20% $200,000 $224,999 2.45% $225,000 $249,999 3.20% $250,000 + 4.50% SunSolution new sales premium up to $999,999 will earn a 3.20% bonus. New sales premium exceeding this threshold will earn a 4.50% bonus. SunAdvantage new sales premium will earn bonus based on the SunAdvantage scale as noted above. * New business bonus terms and conditions SunSolutions and SunAdvantage new sales premium and case count is based on the sold policy effective date. Association, Creditor and Affinity programs are excluded. Bonus will be calculated for and paid on commission based policies only. New business case count Multiple divisions or policies for one client are considered as one case. For SunAdvantage or SunSolutions cases sold by multiple agents of record ( AOR or Split Cases ), the percentage of total sold premium assigned to each advisor/broker will qualify towards the case count. For example, 3 split cases of 0.5 will give an advisor 1.5 cases and not 3 cases and they will not be eligible for bonus. The sum of their cases needs to meet the criteria in order for them to qualify. A sold SunSolutions contract must contain non-refund premium in order to count towards the combined new business case count threshold. Sold contracts that are 100% ASO or 100% refund premium do not qualify and cannot be included in new business case count thresholds. New business premium Only non-refund premium is counted towards the combined new business premium thresholds. ASO and refund premium are excluded from the calculations for both the combined new business thresholds and bonus scales. Non-refund premium is capped at $500,000 per client or per policy (i.e. can have more than one per client) for both SunAdvantage and SunSolutions when applied to the combined new business premium thresholds and bonus scales. 2015 Group Benefits Advisor Appreciation Program 2
New business bonus calculation examples Advisor A SunSolutions new business during 2015 Total new business case count 1.00 Total new business premium $250,000 SunAdvantage new business during 2015 Total new business case count 2.00 Total new business premium $50,000 Combined Sun Life Financial Group Benefits Total new business premium $300,000 SunSolutions new business bonus Total capped new business premium $250,000 Bonus rate 3.20% Total bonus paid $8,000 New business bonus thresholds Total new business premium $75,000 SunAdvantage new business bonus Total new business premium $50,000 Bonus rate 1.20% Total bonus paid $600 Total new business bonus paid $8,600 Advisor B SunSolutions new business during 2015 Total new business case count 0.00 Total new business premium $0 SunAdvantage new business during 2015 Total new business case count 2.00 Total new business premium $80,000 Combined Sun Life Financial Group Benefits Total new business case count 2.00 Total new business premium $80,000 < New business bonus thresholds Total new business premium $75,000 Advisor does not qualify for bonus as failed to meet combined new business case count threshold Advisor C SunSolutions new business during 2015 Total new business premium $1,500,000 SunAdvantage new business during 2015 Total new business case count 5.00 Total new business premium $160,000 Combined Sun Life Financial Group Benefits Total new business case count 8.00 Total new business premium $1,660,000 SunSolutions new business bonus Total capped new business premium $1,500,000 Bonus rate 3.20% (for $999,999) & 4.50% (for $500,001) Total bonus paid $54,500 New business bonus thresholds Total new business premium $75,000 SunAdvantage new business bonus Total new business premium $160,000 Bonus rate 1.95% Total bonus paid $3,120 Total new business bonus paid $57,620 2015 Group Benefits Advisor Appreciation Program 3
Persistency bonus To qualify for the persistency bonus, your SunSolutions and SunAdvantage blocks are treated separately and must satisfy the thresholds outlined below: SunSolutions persistency thresholds: ** To qualify, your SunSolutions block must satisfy the three following thresholds: 1. Total in-force cases as of January 1 st, 2015 greater than or equal to five 2. Total in-force premium as of January 1 st, 2015 greater than or equal to $1,000,000 3. Minimum persistency as of December 31 st, 2015 greater than or equal to 93.0% SunAdvantage persistency thresholds: ** To qualify, your SunAdvantage block must satisfy the three following thresholds: 1. Total in-force cases as of January 1 st, 2015 greater than or equal to four 2. Total in-force premium as of January 1 st, 2015 greater than or equal to $200,000 3. Minimum persistency as of December 31 st, 2015 greater than or equal to 88.0% Once you satisfy either the SunSolutions or SunAdvantage persistency bonus thresholds, your appreciation award for your SunSolutions or SunAdvantage in-force qualifying premium respectively, will be based on the following bonus scales: SunSolutions 2015 Qualifying in-force premium SunAdvantage 2015 Qualifying in-force premium SunSolutions persistency bonus scale Qualifying SunSolutions in-force premium is applied to the scale below Persistency Rate From To Bonus Rate 93.0% 93.9% 0.50% 94.0% 94.9% 0.60% 95.0% 95.9% 0.70% 96.0% 96.9% 0.80% 97.0% 97.9% 0.90% 98.0% 99.9% 1.40% 100.0% 1.60% Persistency calculation: SunAdvantage persistency bonus scale Qualifying SunAdvantage in-force premium is applied to the scale below Persistency Rate From To Bonus Rate 88.0% 88.9% 0.10% 89.0% 89.9% 0.20% 90.0% 91.9% 0.30% 92.0% 92.9% 0.40% 93.0% 93.9% 0.50% 94.0% 94.9% 0.60% 95.0% 95.9% 0.70% 96.0% 96.9% 0.80% 97.0% 97.9% 0.90% 98.0% 99.9% 1.40% 100.0% 1.60% ( Total business-in-force premium as of January 1 st, 2015 less Total termination premium as of December 31 ) st, 2015 Total business-in-force premium as of January 1 st, 2015 ( Total business-in-force premium as of January 1 st, 2015 Persistency bonus calculation: Total termination premium as of December 31 less) X Bonus Rate % st, 2015 Note: Terminations dated December 31 st, 2015 will be recorded in January 2016 and included within 2016 persistency bonus calculations. 2015 Group Benefits Advisor Appreciation Program 4
** Persistency bonus special notes Association, Creditor and Affinity benefit programs are excluded. Bonus will be calculated for and paid on commission based policies only. In-force case count Multiple division or policies for one client are considered as one case. For SunAdvantage or SunSolutions cases sold by multiple agents of record ( AOR or Split Cases ), the percentage of total sold premium assigned to each advisor/broker will qualify towards the case count. For example, 3 split cases of 0.5 will give an advisor 1.5 cases and not 3 cases and they will not be eligible for bonus. The sum of their cases needs to meet the criteria in order for them to qualify. An in-force policy must contain non-refund premium in order to count towards the persistency bonus case count threshold. Contracts that are 100% ASO or policies that are 100% refund premium do not qualify. In-force & terminated premium Only non-refund premium is counted towards the persistency bonus premium thresholds. ASO and refund premiums are excluded from counting towards both the persistency bonus thresholds and bonus scales. Non-refund premium is capped at $500,000 per case for both SunAdvantage and SunSolutions when applied to the persistency bonus premium thresholds and bonus scales. 2015 Group Benefits Advisor Appreciation Program 5
Persistency bonus calculation examples Advisor A SunSolutions in-force business Total in-force case count as of January 1 st, 2015 6.00 Total in-force premium as of January 1 st, 2015 $5,200,000 Total in-force capped premium as of January 1 st, 2015 $4,700,000 Total terminated cases as of December 31 st, 2015 1.00 Total terminated premium as of December 31 st, 2015 $300,000 Total terminated capped premium as of December 31 st, 2015 $300,000 Persistency as of December 31 st, 2015 93.6% SunSolutions persistency bonus Total qualifying capped in-force premium $4,400,000 Bonus rate 0.50% Total bonus paid $22,000 SunAdvantage in-force business Total in-force case count as of January 1 st, 2015 5.00 Total in-force premium as of January 1 st, 2015 $250,000 Total in-force capped premium as of January 1 st, 2015 $250,000 Total terminated cases as of December 31 st, 2015 1.00 Total terminated premium as of December 31 st, 2015 $15,000 Total terminated capped premium as of December 31 st, 2015 $15,000 Persistency as of December 31 st, 2015 94.0% SunAdvantage persistency bonus Total qualifying capped in-force premium $235,000 Bonus rate 0.60% Total bonus paid $1,410 Total persistency bonus paid $23,410 Advisor B SunSolutions in-force business Total in-force case count as of January 1 st, 2015 3.00 Total in-force premium as of January 1 st, 2015 $900,000 Total terminated premium as of December 31 st, 2015 $0 Persistency as of December 31 st, 2015 100.0% SunSolutions persistency bonus The advisor does not qualify for SunSolutions persistency bonus as in-force case count and premium thresholds were not satisfied SunAdvantage in-force business Total in-force case count as of January 1 st, 2015 10.00 Total in-force premium as of January 1 st, 2015 $320,000 Total terminated premium as of December 31 st, 2015 $100,000 Persistency as of December 31 st, 2015 68.8% SunAdvantage persistency bonus The advisor does not qualify for SunAdvantage persistency bonus as persistency rate threshold was not satisfied Total persistency bonus paid $0 Advisor C SunSolutions in-force business Total in-force case count as of January 1 st, 2015 7.00 Total in-force premium as of January 1 st, 2015 $4,000,000 Total in-force capped premium as of January 1 st, 2015 $3,500,000 Total terminated cases as of December 31 st, 2015 0.00 Total terminated capped premium as of December 31 st, 2015 $0 Persistency as of December 31 st, 2015 100.0% SunSolutions persistency bonus Total qualifying capped in-force premium $3,500,000 Bonus rate 1.60% Total bonus paid $56,000 SunAdvantage in-force business Total in-force case count as of January 1 st, 2015 3.00 Total in-force premium as of January 1 st, 2015 $96,000 Total terminated premium as of December 31 st, 2015 $0 Persistency as of December 31 st, 2015 100.0% SunAdvantage persistency bonus The advisor does not qualify for SunAdvantage persistency bonus as in-force case count and premium thresholds were not satisfied Total Persistency Bonus Paid $56,000 2015 Group Benefits Advisor Appreciation Program 6
A note about disclosure Our mutual customers need to have complete and accurate information about the benefits plans they purchase from us. That can only be assured through full and meaningful disclosure, including disclosure about the insurer-advisor relationship and advisor compensation related to the products and services they buy. Please ensure your clients are fully aware of all commissions and other forms of compensation you receive from Sun Life Financial and other suppliers. We d like to tell you more If you would like more information about the 2015 Group Benefits Advisor Appreciation Program, just contact your Sun Life Financial group representative. About Sun Life Financial A market leader in group benefits, Sun Life Financial serves more than 1 in 6 Canadians, in over 12,000 corporate, association, affinity and creditor groups across Canada. Our core values integrity, service excellence, customer focus and building value are at the heart of who we are and how we do business. Sun Life Financial and its partners have operations in 22 key markets worldwide including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. www.sunlife.ca SunAdvantage is a trademark of Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies. Printed in Canada GRP1737-E-01-15 mr-ny Group Benefits