SUN LIMITED PAY LIFE€¦ · 15-pay for ages 0 to 70 20-pay for ages 0 to 65 Pay to age 65 for ages 0 to 44 For joint last-to-die plans, the payment periods available are based on

SUN LIMITED PAY LIFE ADVISOR GUIDE

What’s inside:

productoverview

guarantees

investmentaccountoptions

administration

LIFEINSURANCE|Permanent

ADVISOR USE ONLY

TABLE OF CONTENTSProduct at a glance ......................................................................................................... 2

Product overview ............................................................................................................ 4

Client profile ..................................................................................................................... 4

1, 2, 3 … guarantee! .....................................................................................5Guaranteedcostofinsurancepaymentperiods............................................................5

Guaranteedcashsurrendervalue..........................................................................................5

Guaranteeddeathbenefit.........................................................................................................6

Product features ........................................................................................6Coverageamounts.........................................................................................................................6

Typesofcoverage..........................................................................................................................7

Paymentstotheplan...................................................................................................................7

Investment account options ..................................................................7Guaranteedinvestmentaccounts..........................................................................................8

Non-guaranteedinvestmentaccounts................................................................................9

Marketvalueadjustment........................................................................................................ 12

Policyfund....................................................................................................................................... 12

Serviceaccountandmaintainingtax-exemptstatus.................................................. 12

Additional benefits. ................................................................................ 13 Totaldisabilitybenefit...............................................................................................................13

Ownerwaiverbenefit.................................................................................................................13

Guaranteedinsurabilitybenefit............................................................................................ 14

Childterminsurancebenefit.................................................................................................. 15

Livingbenefit.................................................................................................................................. 15

Administrative information .................................................................. 16Paymentstothepolicyfund.................................................................................................. 16

Withdrawalsfromthepolicyfund...................................................................................... 17

Policyloans..................................................................................................................................... 17

Cashsurrendervalue.................................................................................................................. 18

Policyrescission............................................................................................................................ 18

Transactionfees............................................................................................................................ 18

Non-smokerclassification....................................................................................................... 19

Productdisclosurerequirements.......................................................................................... 19

Makingaclaim............................................................................................................................... 19

2ADVISORGUIDE-SunLimitedPayLife

PRODUCT AT A GLANCE

COVERAGE OPTIONS, PAYMENT PERIODS AND ISSUE AGES

Single life Joint last-to-die

10-pay 0to75 18to75

15-pay 0to70 18to70

20-pay 0to65 18to65

Pay to age 65 0to44 Notavailable

NOTE: Theselimitedpaymentperiodsareguaranteedonlyiftheclientmakestheminimumpaymentthroughoutthepaymentperiodandtheclientselectsaguaranteedinvestmentaccountoption.Ifclientschooseindexormanagedaccountsandtheinterestearnedisnegative,oriftheymakeanywithdrawalsorloans,theywillberequiredtomakeadditionalpaymentstokeeptheirpolicyineffect.Theminimumpaymentrequiredisthemonthlycostofinsuranceplustheguaranteed2%premiumtax.

FEATURESCost of insurance (COI) • GuaranteedlevelCOIforthedurationofthepaymentperiod

• Guaranteedtoceaseattheendoftheselectedpaymentperiod

Payment options • Monthlypre-authorizedchequing(PAC)planorannualbilling• $250minimumforlumpsumpayments

Premium tax • Guaranteed2%forallprovinces

Death benefit • Faceplusfund• Guaranteedcashsurrendervaluesarenotpaidaspartofthedeathbenefit

Issue limits Minimum: •$25,000forsinglelife Maximum: •$10,000,000 •$50,000forjointlast-to-die

Rate bands •$25,000to$49,999 •$250,000to$499,999•$50,000to$99,999 •$500,000to$999,999•$100,000to$249,999 •$1,000,000+

Underwriting classes • Smoker• Non-smoker

Guaranteed cash surrender values

•Availableonsurrenderofpolicy•Startatthe5thpolicyanniversary•Notincludedaspartofthedeathbenefit

ADVISORGUIDE-SunLimitedPayLife 3

Non-guaranteed investment accounts

• Accountsbasedontheperformanceofindices(6indexaccounts)• Accountsbasedontheperformanceofmanagedfunds(10managedaccounts)

Please see the Investment account booklet for details.

Guaranteed investment accounts

• Dailyinterestaccount(DIA)• Guaranteedinterestaccount(GIA):Theguaranteedminimumrateis90%ofGovernment

ofCanadabondsofthesameterm,less1.75%.Theguaranteedminimumsforeachtermwillnotbelessthan:

1- yearGIA:0% 10- yearGIA:1.5% 3- yearGIA:0% 20- yearGIA:1.5% 5- yearGIA:0.5%• Long-termmanagedportfolioaccount:guaranteedminimumreturnis1.5%• Guaranteedinvestmentaccountsshouldbechosentoguaranteethepaymentperiodselected

Minimum • $250minimuminvestmentmustbemetforeachselectedaccount

ADDITIONAL BENEFITS Total disability benefit

• Issueages: 10-pay–9to55 20-pay–0to55 15-pay–4to55 Paytoage65–0to44• Forjointlast-to-diepolicies,thisbenefitcanbeaddedforeitheroreachinsured

personindividually

Owner waiver benefit • Automaticallyincluded,atnoadditionalcost,wheninsuredis17yearsofageoryounger• Ownermustbeaparentorgrandparentoftheinsuredpersonand55yearsofage

oryoungeratissue

Guaranteed insurability benefit

• Issueages:0to40 •Minimumamount:$25,000• Expiresatage45 •Maximumamount:$150,000

Child term benefit

• Child0to18yearsofage •Minimumamount:$10,000• Parent16to55(18to55Quebec) •Maximumamount:$20,000

Living benefit • Iftheinsuredpersonisdiagnosedwithaterminalillness,anapplicationcanbemadeforalumpsumof50%ofthedeathbenefit,toamaximumof$100,000(non-contractual)

ADMINISTRATIVE INFORMATIONPolicy loans • Loansagainstthecashsurrendervalueareavailablesubjecttoa$500minimum

Withdrawals • Withdrawalsfromthepolicyfundareavailablesubjecttoa$250minimumperrequest

Options to maintain tax-exempt status

• Transfertoserviceaccount • Refundincash

Service account • Allinvestmentaccountoptions,exceptthelong-termmanagedportfolioaccountareavailableasfundselectionsintheserviceaccount

Policy fee and surrender charges

• None

Transaction fees • Upto2freetransactionsperpolicyyear• $100pertransactionisthemaximumfeechargedatanytime

INVESTMENT ACCOUNT OPTIONS

FormoreinformationaboutthesefeaturesandbenefitspleaserefertotheSunLimitedPayLifesamplepolicyavailableonline.


SunLimitedPayLifeisapermanentlifeinsuranceproductofferingaguaranteedcostofinsurancethatispayableforalimited periodoftime,guaranteedcashsurrendervaluesandaguaranteeddeathbenefit.Clientscanchooseapaymentperiodthatsuitstheirbudgetandneeds.

SunLimitedPayLifeoffersclients:

theassuranceandpredictabilityofaguaranteedminimumpaymentforaguaranteedperiodoftime,and

theabilitytoinvestadditionalfundswithinthepolicytoincreasetheirdeathbenefitorfortax-preferredsavingsgrowth.

Clients who want the assurance and predictability of a guaranteed minimum payment for a guaranteed period of time*

1, 2, 3 … guarantee! Three easy steps to guaranteed protection for clients

1. Select one of the guaranteed cost of insurance payment periods:

10-,15-,20-yearpaymentperiodsorpaytoage65option.

2. Choose a payment:

Selectamonthlyorannualpaymentschedule.

Notethateachpaymentissubjecttoa2%premiumtax.

Guaranteetheclient’scoverageandpaymentperiodbyensuringtheirpayment,minusthepremiumtax,issufficienttocoverthemonthlycostofinsurancewithdrawal.

Theirpolicyfundanddeathbenefitcanbeincreasedbymakingadditionalpayments.

3. Choose an investment account option:

Toguaranteethecoverageandpaymentperiod,selectaguaranteedinvestmentaccount:dailyinterestaccount,guaranteedinterestaccountorthelong-termmanagedportfoliofortheirrequiredminimumpaymentamount.

Iftheclientchoosestomakeadditionalpaymentstheycanselectfromtheguaranteedaccountsorthe16market-basedaccountsoffered.

Toillustratethispaymentoption,selectthe“guaranteedminimumpayment”defaultcalculationinyourillustrationsoftware.

* Aminimumpaymentisrequiredtoensurepermanentlifeinsuranceprotection.Theminimumpaymentequalsthecostofinsuranceplus2%guaranteedpremiumtax.

PRODUCT OVERVIEW

CLIENT PROFILE


Clients who want to invest additional funds within the policy to increase their death benefit or for tax-preferred savings growthClientsmaychoosetomakeadditionalpaymentstotheirplan.Thesepaymentscanbeinvestedinanyofthe23investmentaccountsavailable.Aminimumallocationof5%toeachinvestmentaccountisrequired.Aminimum$250investmentisrequiredforeachinvestmentaccountanda2%guaranteedpremiumtaxappliestoallpaymentsintothepolicy.Allsubsequenttransferstoeachaccountmustbeaminimumof$250.

Toillustratethispaymenttype,selecteitherthe:“yearlymaximumpayment”or“levelmaximumpaymentforexemptstatus”calculationonyourillustrationsoftware.

Guaranteed cost of insurance payment periodsThecostofinsuranceisguaranteedatissueandwillnotchange.Itiswithdrawnmonthlyfromthepolicy.Thesewithdrawalsareguaranteedtostopattheendofthepaymentperiodchosen.

Thecostofinsurancerateisbasedonrateband,issueage,genderandsmokingstatus.Thecostofinsuranceforjointlast-to-dieplansisbasedonjointequivalentage,whichiscalculatedbasedontheageandsmokingstatusofeachinsuredperson.

Fourcostofinsurancepaymentperiodoptionsareavailable:

10-payforages0to75

15-payforages0to70

20-payforages0to65

Paytoage65forages0to44

Forjointlast-to-dieplans,thepaymentperiodsavailablearebasedontheageoftheoldestinsuredperson.Theminimumageis18foreachinsuredpersonforthejointlast-to-diebasicinsurancebenefit.Paytoage65optionisnotavailableonajointbasis.

Paymentscancontinuetobemadetothepolicyevenaftertheguaranteedcostofinsurancewithdrawalsend.

Guaranteed cash surrender valueGuaranteedcashsurrendervaluesstartinthe5thpolicyyear.Theguaranteedcashsurrendervalueispaidoutwhenthepolicyiscancelled/surrendered.Guaranteedcashsurrendervaluesarenotpaidoutaspartofthedeathbenefit.

Loansagainsttheguaranteedcashsurrendervalueareavailableifcertainconditionshavebeenmet.

Thesevaluesalsosupporttheautomaticpaymentloan(APL)featureifthereisinsufficientmoneyinthepolicyfundtocovermonthlycostofinsurancewithdrawals.

1, 2, 3 … GUARANTEE!


Guaranteed death benefitTheamountoftheguaranteeddeathbenefitisdeterminedatthetimeofapplication.Ifallcostofinsuranceobligationsaremetduringthepaymentperiodchosen,thedeathbenefitamountisguaranteedforlife.Clientsmaychoosetodecreasetheguaranteeddeathbenefitatanytime.However,theycannotincreasetheguaranteeddeathbenefitamountafterthepolicyisissued.

Increasingthesizeofthepaymentsintothepolicymayincreasethetotaldeathbenefit.Thetotaldeathbenefitisequaltotheguaranteeddeathbenefitplusthepolicyfundvalue,lessanyoutstandingloans,plusinterest.

Coverage amountsThefollowingguaranteeddeathbenefitamountsareavailablewiththisplan:

Minimum:

• $25,000forsinglelife

• $50,000forjointlast-to-die

Maximum:

• $10,000,000forbothsingleandjointlast-to-die

Decreaseswillbeallowedtominimumissuelimits.However,clientscannotmakedecreasesthatarebelowplanminimumsshownabove.Theyalsocannotincreasetheguaranteeddeathbenefitamount.

Policy fund value (not guaranteed)

Total death benefit

Guaranteed death benefit

Policy year

Dea

th b

enef

it

PRODUCT FEATURES


Types of coverageSunLimitedPayLifeofferstwotypesofcoverage:

1. Single life

basicinsurancebenefitisbasedononeinsuredperson

2. Joint last-to-die

minimumissueageis18yearsforeachinsuredperson

coverageisbasedontwoinsuredpersons

costofinsuranceisbasedontheequivalentsingleage

deathbenefitispayableonthelastdeathofthetwoinsuredpersons

costofinsurancecontinuesuntiltheendofthepaymentperiodortheseconddeath,whichevercomesfirst

Payments to the planClientsmaychoosetopaymonthlyusingthepre-authorizedcheque(PAC)optionortobebilledannually.Lumpsumpaymentsof$250ormorewillalsobeacceptedatanytime.Allpaymentstothepolicyfundaresubjecttoa2%guaranteedpremiumtax.

SunLimitedPayLifegivesthesecurityofguaranteedaccountsandtheflexibilitytoachieveadditionaltax-preferredgrowth.

Toguaranteecoverageandpayments,chooseone,oracombinationof,theguaranteedaccountslistedbelow.

Bymaximizingpayments,additionaltax-preferredgrowthcanbegeneratedwhichwillcreateapolicyfundandincreasethetax-freedeathbenefit.Whenclientschoosetooverfundtheirpolicyinthisway,dependingonthepersonalriskprofile,thoseadditionalpaymentscaneitherbedirectedtoguaranteedaccountsoranyofthe16market-basedaccountslistedonpages9and10.

Thereare23investmentaccountsavailablewithSunLimitedPayLife.ThereisnoinvestmentbonuswithSunLimitedPayLife.Noinvestmentbonusmeansbettercreditedratesonthedailyinterestaccountandguaranteedinterestaccountsandlowermanagementfeesonaccountslinkedtoperformanceofindices.

Atthetimeofapplication,clientsmustselectatleastoneinvestmentaccountfortheirpolicy.Aminimumallocationof5%toeachaccountisrequired,anda$250minimuminvestmentmustbemetforeachselectedaccountbeforeanyfundsaretransferredfromtheactivityaccounttotheselectedinvestmentaccount.Allsubsequentinvestmentsmustalsomeetminimumallocationrequirements.Ifthepolicyowner’sneedsorgoalschange,thepaymentamountandinvestmentstrategycanbechangedatanytime.

INVESTMENT ACCOUNT OPTIONS


EachoftheinvestmentaccountsmentionedinthissectionaredescribedinmoredetailontheSunLifeFinancialinvestmentaccountfactsheets.Thefactsheetsdescribemanagementfees,marketvalueadjustments(MVAs)andcreditedinterestindetailandareavailableontheadvisorwebsite.

Guaranteed investment accountsToguaranteetheminimumpayment,clientsneedtoselectaninvestmentaccountoptionwithaguaranteedminimuminterestrate.

Theseaccountsincludethedailyinterestaccount,guaranteedinvestmentaccountsandthelong-termmanagedportfolio.

Daily interest accountThedailyinterestrateissetbySunLifeFinancialandissubjecttochangeatanytime.Theguaranteedminimumrateis90%ofthe30-dayGovernmentofCanadaTreasuryBills,less1.75%,andwillneverbelessthan0%.

Guaranteed interest accountsTheguaranteedminimumrateis90%ofGovernmentofCanadabondsofthesameterm,less1.75%.Theguaranteedminimumsforeachtermwillnotbelessthan:

1-yearGIA:0%

3-yearGIA:0%

5-yearGIA:0.5%

10-yearGIA:1.5%

20-yearGIA:1.5%

EachtransfertotheGIAcreatesanewinvestmentlayer,withaspecificmaturitydateandinterestrate.WhenaGIAlayermatureswefollowtheclient’sinstructionsand:

applythebalanceoftheGIAlayertoanewGIAaccountforthesameterm,or

transferthevalueincludinginterestatthematuritydatetotheactivityaccount.Moneywillbetransferredfromtheactivityaccountbacktotheinvestmentaccount(s)afterthe$250minimumamountforallinvestmentaccountsismetaccordingtotheclient’sinvestmentmix.

WemaychangeGIAaccountsavailableatanytime.WhenclientshavemoneyinadiscontinuedGIAaccount,wewillnotifythem.WewillalwaysofferaGIAaccountwitha1.5%guaranteedminimuminterestrate.


Long-term managed portfolio accountThelong-termmanagedportfolioaccountearnsdailyinterestbasedonnetaverageyieldsforadiversifiedportfolioofassetsincludingbonds,mortgages,commonstocksandrealestate.

Theguaranteedminimumrateofreturnis1.5%.

Amarketvalueadjustmentmayapplyoncashwithdrawalsandmovementbetweeninvestmentaccounts.

AnMVAwillnotapplyonCOIwithdrawalsortransferstoserviceaccounttomaintainexemptstatus.

Non-guaranteed investment accountsThenon-guaranteedinvestmentaccountsaremarketbasedaccountswhichincludeindexaccountsandmanagedaccounts.

Accounts based on performance of indices (index accounts)Theseaccountsearninterestbasedontheperformanceoftheunderlyinginvestment(s).Returnsaredeterminedeachbusinessday.Sincetheunderlyingindicescanincreaseordecrease,theapplicableinterestratecanbepositiveornegative.

Whenclientsselecttheseaccounts,theydonotacquireaninterestinthedesignatedmarketindexorpurchaseanyunitsorlegalinterestinanysecurity.

Index account options:

FPXIncome*

FPXBalanced*

FPXGrowth*

CanadianBond

CanadianEquity

AmericanEquity

*FPXIncomeIndex,FPXBalancedIndexandFPXGrowthIndexaretrademarksofTheNationalPostCompany.

SunLimitedPayLifeisnotendorsed,soldorpromotedbytheNationalPostCompany.


Accounts based on performance of managed funds (managed accounts)Theseaccountsearninterestbasedontheperformanceoftheunderlyinginvestment(s).Returnsaredeterminedeachbusinessday.Performancefluctuatesandinterestcanbepositiveornegative.

Whenclientsselecttheseaccounts,theydonotacquireaninterestinthedesignatedfundorpurchaseanyunitsorlegalinterestinanysecurity.

Managed account options:

CISignatureIncome&Growth

CIPortfolioSeriesBalanced

CIPortfolioSeriesConservative

CIHarbour

CIHarbourGrowth&Income

FidelityNorthStar®

FidelityTrueNorth®

MackenzieCundillValue

MackenzieIvyForeignEquity

SunLifeMFSUSEquity

Note:Seethe‘Investmentaccountoptions’bookletformanagementfeesandeachfundcompany’smanagementexpenseratio(MER).

DID YOU KNOW?

Ifchoosingindexormanagedaccountsandtheinterestearnedisnegative,orifaclientmakesanywithdrawalsorloans,thentheclientwillneedtomakeadditionalpaymentstokeepthepolicyineffect.


Withdrawal order optionsThewithdrawalorderisselectedatthetimeofapplicationandcannotbechanged.Itappliestotransfersfromtheinvestmentaccount(s)totheactivityaccountforcostofinsurancewithdrawals,fortransferstotheserviceaccounttomaintainatax-exemptstatusandforclient-requestedwithdrawalsandpolicyloans.Thefollowingordersareavailable:

*FPXIncomeIndex,FPXBalancedIndexandFPXGrowthIndexaretrademarksofTheNationalPostCompany.SunLimitedPayLifeisnotendorsed,soldorpromotedbytheNationalPostCompany.

Standard Alternate Proportional

1.Dailyinterestaccount 1.Dailyinterestaccount 1. Dailyinterestaccount

2.Accountslinkedtoperformanceofindices–inthisorder:

a.FPXIncome* b.FPXBalanced* c.FPXGrowth* d.CanadianEquity e.AmericanEquity f.CanadianBond

2.Guaranteedinterestaccounts

2.Proportionalfromeachinvestmentaccount–GIA,indexandmanaged–basedonthecurrentbalanceofeachaccountatthetimeofwithdrawal

3.Accountsbasedontheperformanceofmanagedfundsinproportiontothebalanceofeachofthoseaccounts

3.Accountslinkedtoperformanceofindices–inthisorder:

a.FPXIncome* b.FPXBalanced* c.FPXGrowth* d.CanadianEquity e.AmericanEquity f.CanadianBond

4.Guaranteedinterestaccounts

4.Accountsbasedontheperformanceofmanagedfundsinproportiontothebalanceofeachofthoseaccounts

5.Long-termmanagedportfolioaccount

5.Long-termmanagedportfolioaccount


Market value adjustment (MVA)AnMVAisapotentialreductioninthevalueoffundswithdrawnfromcertaininvestmentaccounts.Generally,ifaGIAisredeemedpriortoit’smaturityandcurrentinterestratesfortheparticulartermaccounthaveincreased,anMVAwillapply.AnMVAdoesnotapplytomoneytransferredtotheactivityaccounttopaythecostofinsuranceortotransferstoandfromtheserviceaccount.AnMVAdoesapplyto:

• withdrawalsfromthedailyinterestaccount,guaranteedinterestaccountsandthelong-termmanagedportfolioaccount,

• withdrawalsforcashortransferstosupportloans,and

• transfersfrominvestmentaccountswithguarantees.

Seethe“Investmentsaccount”sectionofthepolicyfortheMVAformula.

Policy fundThepolicyfundvalueisequaltotheamountintheactivityaccount,plusthetotaloftheselectedinvestments,includingaccumulatedinterest.Itdoesnotincludethebalanceoftheserviceaccount.

Service account and maintaining tax-exempt statusTheserviceaccountcanbeusedtohelpmaintainthetax-exemptstatusofthepolicy.Paymentsorpolicyfundgrowthinexcessoftheannualtax-exemptlimitwillbetransferredtotheserviceaccountorrefundedincashaccordingtothewithdrawalorderselectedbytheclientatissue.Theannualexempttestmayalsoidentifyfundstobetransferredbacktothepolicyfund.

Paymentstotheserviceaccountmaybeinvestedinanyoneoftheavailableinvestmentaccountsexceptthelong-termmanagedportfolioaccount.Paymentsthatgodirectlytotheserviceaccountarenotsubjecttothe2%guaranteedpremiumtax,althoughtransfersfromtheserviceaccounttotheactivityaccountaresubjecttothepremiumtax.Growthwithintheserviceaccountwillbetaxedannually.

Client’s payment

Activityaccount

Serviceaccount

Policy fund

A 2% guaranteedpremium tax

is deducted to cover provincial premium taxes

The monthlycost of insurance

is deducted

Interest earnedon investments in

client’s policy fundgrow tax-preferred

Interest earnedon service account

investments istaxable

$250

$250

$250

Client’s choiceof investment

accounts


ADDITIONAL BENEFITS

Total disability benefit Thisisanadditionalbenefitthatmaintainscoverageiftheinsuredpersonbecomestotallydisabledandisunabletoearnanincomebetweentheagesof18and60.Premiumswillnotbewaiveduntilafterthepolicyanniversarynearesttheinsuredperson’s18thbirthday.

Thecostofinsurancewithdrawalsaresuspendeduntilthedisabilityends,orthepaymentperiodends–whichevercomesfirst.Thebenefitisalsoextendedtoinsuredpersonswhoarestudentsorunemployedatthetimeofdisability,subjecttoprovisionslaidoutinthepolicy.

Forjointlast-to-dieplans,eachinsuredpersoncanchoosetoaddthisbenefit.

Itisimportanttounderstandthedefinitionoftotaldisabilityasitappliestothisbenefit.Pleasereviewthetotaldisabilitybenefitunderthe“Additionalbenefits”sectionoftheclient’spolicyforadditionaldetails.

Owner waiver benefitThisbenefitisautomaticallyincludedatnoadditionalcostwhentheinsuredpersonisage17oryounger,theownerofthepolicyisaparentorgrandparentoftheinsuredpersonandis55yearsofageoryounger.Itisnotavailableonplansthathavemorethanoneowner.

Theownerwaiverbenefitprotectsthecoverageiftheownerdiesorisunabletoearnanincomeasaresultoftotaldisability.Ifthishappens,thecostofinsurancewithdrawalsceaseuntilthedisabilityends,thepolicyanniversarynearesttheinsuredperson’s18thbirthdayorthepolicyanniversarynearesttheowner’s65thbirthday,oruntilthepaymentperiodends–whichevercomesfirst.

Ifnodisabilityoccurs,thisbenefitendsonthepolicyanniversarynearesttheinsured’s18th

birthdayorthepolicyanniversarynearesttheowner’s60thbirthday–whichevercomesfirst.

Itisimportanttounderstandthedefinitionoftotaldisabilityasitappliestothisbenefit.Pleasereviewthetotaldisabilitybenefitunderthe“Additionalbenefits”sectionoftheclient’spolicyforadditionaldetails.


Guaranteed insurability benefit (GIB)Theguaranteedinsurabilitybenefitisavailableonallpaymentoptionsiftheinsuredpersonisbetweentheagesof0and40.Themaximumamountofguaranteedinsurabilitybenefitthatcanbepurchaseddependsontheinsuredperson’sage.

*Thepurchaseamountissubjecttoa$150,000lifetimemaximumGIBperinsuredperson.Forexample,iftheinsuredpersonhas$100,000GIBonanexistingpolicy,themaximumpurchaseis$50,000regardlessofthedeathbenefitofthepolicy.

Exercising the guaranteed insurability benefitTheamountofguaranteedinsurabilitybenefitpurchasedwithaSun LimitedPayLifepolicydetermineshowmuchadditionalinsurancemaybepurchasedatfuturedatesasdescribedbelow.

Thepolicyownercanpurchasemorelifeinsuranceontheinsuredperson,in5-yearperiodsuntilthepolicyanniversarynearesttheinsuredperson’s45thbirthday,regardlessoftheirfuturehealth,occupationorlifestyle.Theoptionperiodsstartontheinsuredperson’s15th,20th,25th,30th,35thand40thbirthdays.Theinsuredpersonmustwaitatleasttwoyearsbetweeneachinsurancepurchase.Thebenefitendsonthepolicyanniversarynearesttheinsuredperson’s45thbirthday.

Example:

A22-year-oldmalepurchases$100,000guaranteedinsurabilitybenefitonhisSun LimitedPayLifepolicy.

Atage25,hecanpurchaseanew$100,000lifeinsurancepolicy(anyeligiblelifeinsurancepolicybasedonourrulesregardingageandamountlimitations).

Atage30,hecanpurchaseanothernew$100,000lifeinsurancepolicyandsoonuntilthepolicyanniversarynearesthis45thbirthday.

Intotal,hecouldpurchaseanadditional$400,000oflifeinsurancewithouthavingtoprovideanyevidenceofinsurability.

Age of insured person Maximum GIB available (up to $150,000*)

0-10 Fivetimesthefulldeathbenefitofthepolicy

11-20 Fourtimesthefulldeathbenefitofthepolicy

21-40 Threetimesthefulldeathbenefitofthepolicy


Child term insurance benefit (CTB)Thechildterminsurancebenefitisterminsuranceforthechildrenofthepersoninsuredunderthebasepolicy.Thisbenefitallowschildrenandfuturechildrenoftheinsuredparenttobecoveredundertheirlifeinsurancepolicyuntilthechildis25yearsold.

Theparentwhoisthebaselifeinsuredmustbeastandardriskbetweenages16and55inclusive(18to55inQuebec).CTBisavailableforchildrenborntoorlegallyadoptedbytheinsuredperson,whoareage18oryoungeratthetimeofapplicationandastandardrisk.Step-childrencanbeincludedatthetimeofapplication.Anychildrenborn/adoptedafterthedateofapplicationareautomaticallyinsuredregardlessoftheirriskclass.Clientscanincludestep-childrenafterthebenefitisineffectbyapplyinginwritingandprovidingevidenceofinsurability.

Minimumamount–$10,000

Maximumamount–$20,000(totalperchildcombinedCTBonallpolicies)

Iftheinsuredpersondies,childrenarecoveredunderthisbenefituntilage25oruntiltheyapplyforanewlifeinsurancepolicyaspermittedunderthisbenefit.

Betweentheir18thand25thbirthdays,thechildwillhavetherighttobuyadditionallifeinsuranceforuptofivetimestheamountofthechildtermbenefit,providedtheyhavebeeninsuredunderthisbenefitforatleastthreeyears.

Thechildtermbenefitexpiresonthepolicyanniversarynearesttheinsuredperson’s65thbirthday.

Pleasereviewthechildterminsurancebenefitunderthe“Additionalbenefits”sectionofthepolicyforadditionaldetails.

Living benefitThisbenefitisofferedonallSunLifeAssuranceCompanylifeinsuranceproductsandisanon-contractualarrangementthatwemayapproveatourdiscretiononacase-by-casebasis.

Ifaninsuredpersonisdiagnosedwithaterminalillness,anapplicationcanbemadebythepolicyownerforalumpsumadvanceof50%ofthedeathbenefit,toamaximumof$100,000.Thelumpsum,plusinterest,isdeductedfromthedeathbenefitwhenitispaid.

Thisbenefitwillfollowtherulesofthelivingbenefitprogramineffectwhenthepolicyownerappliestoreceivethebenefit.


Payments to the policy fundPaymentscanbemademonthlybypre-authorizedcheque(PAC)orannually.IfPAC,paymentsshouldbemadeonthepolicymonthlyanniversaryday.Ifannual,rememberthatthecostofinsuranceisstilldeductedmonthly.

Guaranteed minimum paymentToguaranteetheminimumpayment,clientsneedtoselectaninvestmentaccountoptionwithaguaranteedminimuminterestrate.Theseaccountsincludethedailyinterestaccount,guaranteedinvestmentaccountsandthelong-termmanagedportfolioaccount.Ifchoosingindexormanagedaccountsandinterestearnedisnegative,orifaclientmakesanywithdrawalsorloans,thenadditionalpaymentswillberequiredtokeepthepolicyineffect.Here’sanexampleofhoweachofthesecouldwork:

Monthly PAC equal to policy monthly anniversary day (RECOMMENDED)Iftheguaranteedminimummonthlypaymentof$300(whichincludesthecostofinsurancechargesandpremiumtax)isdepositedonthe1stofthemonthandthePACdayisthe1stofthemonth,thecostofinsurance(COI)andpremiumtaxwillbedeductedatthesametimethedepositismade.Sincethe$300isdepositedonthesamedayasthe$300deductionforCOIandpremiumtax,nothingwillremaintobeinvestedintheinvestmentaccounts.InvestmentchoicewillnothaveanegativeimpactbutitisstillrecommendedtochooseDIA,GIAorlong-termmanagedportfolio.

Monthly PAC before the policy monthly anniversary dayIftheguaranteedminimummonthlypaymentof$300(whichincludesthecostofinsurancechargesandpremiumtax)isdepositedonthe1stofthemonthandisinvestedinamarket-basedinvestmentaccountthatdeclinesinvalueto$275priortochargesbeingdeductedonthe15th,thenthepolicywillbeinashortfallpositionandadditionaldepositswillhavetobemadetopreventlapse/APLprocessing.

Annual paymentsSinceCOIchargesaredeductedmonthly,evenwhenmakingannualpayments,it’simportanttoensurethatthevalueinthepolicyfundissufficienttocoverthecostofinsurancechargespluspremiumtax.Let’sassumeanannualpaymentof$1,200isdepositedonJanuary1st,themonthlyanniversaryday.Immediately,themonthlyCOIof$98plus$24premiumtaxisdeducted.Theremainingbalanceof$1,078isdepositedintothepolicyfundandwillearnaninterestratebasedontheunderlyinginvestmentaccount.Let’sassumethat$1,078isinvestedinamarket-basedinvestmentaccountwhichsubsequentlydropsinvalueto$800.Onthe1stofeachsubsequentmonthlyanniversarydaythe$98COIisdeducted.Assumingnorecoveryinthepolicyfundvalue,theCOIchargeswilldepletethepolicyfundwithinabout8monthsandthepolicywillbeinalapseposition.

In all of these examples, selecting from the guaranteed investment account options – DIA, GIA or long-term managed portfolio will ensure funds are available to cover all costs and charges.

ADMINISTRATIVE INFORMATION


Withdrawals from the policy fundAwithdrawalfromthepolicyfundcanbemadeatanytime.Thefollowingconditionsapply:

Theminimumwithdrawalpermittedis$250.

Theclientmayspecifywhichaccounttowithdrawthefundsfromorthewithdrawalorderselectedatapplicationisexercisedasadefault.

AnMVAmayapplytotransfersfromcertaininvestmentaccounts.

Maximumwithdrawalsarereducedbyanyoutstandingpolicyloansandwillbelimitedinthefirstpolicyyear.

Withdrawalsmaybetaxed.

Atransactionfeemayapply.

Seethe“Withdrawingmoneyfromyourpolicy”sectionoftheclient’spolicyfordetails.

Policy loans

Loans against the policy fundTheloanamountrequestedistransferredtotheactivityaccount,whereitactslikecollateralandcontinuestoearninterestattheDIArate.Thefollowingconditionsapply:

Loansarenotpermittedinthefirstpolicyyear.

Theminimumloanavailableis$500.

ThemaximumloanavailableisequaltothepolicyfundvaluelessanyapplicableMVAs,lessexistingpolicyloans,plusinterest.

Loaninterestratemaychangeatanytime;thecurrentloanrateisequaltotheDIArate,plus2%.

Thewithdrawalorderselectedatapplicationisusedwhenfundsaretransferredtotheactivityaccount.AnMVAmayapplytotransfersfromcertaininvestmentaccounts.

Thedeathbenefitpaidtothebeneficiarywillbereducedbytheamountofanyunpaidloan,plusinterest.

Loans against the guaranteed cash surrender valueLoansagainsttheguaranteedcashsurrendervalueareavailableonlyafterloansagainstthepolicyfundhavebeenmaximized.Thefollowingconditionsapply:

Theminimumloanavailableis$500.

Themaximumloanavailableisequaltothecurrentguaranteedcashsurrendervalue,lessexistingloansagainsttheguaranteedcashsurrendervalue,plusinterest,lessanyautomaticpaymentloansplusinterest.

Loaninterestischargeddailyandtheinterestrateissetannually.

Thedeathbenefitpaidtothebeneficiarywillbereducedbytheamountofanyunpaidloan,plusinterest.


Automatic payment loanAnautomaticpaymentloanwillbetakenifthevalueofthepolicyfundisnotsufficienttocoverthemonthlycostofinsurancewithdrawal.Thefollowingconditionsapply:

Themaximumloanavailableisequaltothecurrentguaranteedcashsurrendervalue,lessexistingloansagainsttheguaranteedcashvalueandautomaticpaymentloans,plusinterest.

Loaninterestischargeddailyandtheinterestrateissetannually.

Thedeathbenefitpaidtothebeneficiarywillbereducedbytheamountofanyunpaidloansplusinterest.

Seethe“Borrowingmoneyfromyourpolicy”(policyloan)sectionoftheclient’spolicyformoredetails.

Cash surrender valueTheclientmaycanceltheirpolicyatanytime.

Ifthepolicyiscancelledafterthe10thdayofreceivingit,thecashsurrendervalueispaidtothepolicyowner.Thecashsurrendervalueisequalto:

Thepolicyfundvalue+anyguaranteedcashsurrendervalue+anyamountintheserviceaccount-anyapplicableMVAs-anypolicyloans,includinginterest

Thisamountmaybetaxed.

Seethe“Yourrighttocancelthispolicy”andthe“Ifyouchangeyourmindwithin10days”sectionsoftheclient’spolicyfordetails.

Policy rescissionTheclientmaychoosetosendawrittenrequesttorescindthepolicyandreceivearefundofanyamountpaidwithin10daysofreceivingthepolicyfromus,or60daysafterthepolicyisissued.

Seethe“Ifyouchangeyourmindwithin10days”sectionofthepolicyformoredetail.

Transaction feesAlthoughtherearenosurrenderorpolicyfeesassociatedwiththisplan,feesmaybechargedforcertainpolicytransactionsorpolicychangesincludingthefollowing:deathbenefitreductions,changestoinvestmentdirectionoraccountselection,client-requestedtransferbetweenaccountsandwithdrawals.Clientsmayhaveuptotwofreetransactionsperpolicyyear.Themaximumfeechargedatanytimeis$100.


Non-smoker classificationFromage0-16juvenileratesareused.Beginningatage18ratesaredistinctfornon-smokersandsmokers.

Toqualifyfornon-smokerratestheinsuredpersonmustnothaveusedanynicotineortobaccoproductsinthelast12months.Nicotineortobaccoproductsinclude:cigarettes,cigarillos,smallorlargecigars,pipes,marijuana,hashish,betelnut,chewingtobacco,andnicotinegumorpatches.Occasionallargecigarusemayqualifyasnon-smokerwithanegativecotininetest.

Forjuvenileinsuredstoqualifyfornon-smokerrateswhentheyreachage18theymustsubmitadeclarationandbeapprovedfornon-smokerrates,otherwisesmokerrateswillapply.InsuredsapplyingforSunLimitedPayLifeatage17arenotrequiredtosubmitaseparatedeclarationtobeconsideredfornon-smokerratesatage18butmustmeetthecriteriamentionedabove.

Product disclosure requirementsYouareresponsibleforprovidingclientswithacopyoftheSunLimitedPayLifeclientguide,investmentaccountfactsheetsandaproductillustration.Thesecanbefoundontheadvisorwebsite.Otherimportantdisclosureinformation,includingsamplepolicypagescanbefoundontheadvisorwebsiteaswell.

Making a claimYoumayassistabeneficiaryinmakingaclaimbycalling1 800-800-4SUN (1 800-800-4786)torequestclaimsforms.Completedforms,includingproofoftheinsuredperson’sdeath,needtobemailedto:

Life Claims ServicesSunLifeAssuranceCompanyofCanada227KingSt.S.POBox1601,StationWaterlooWaterlooONN2J4C5Canada

NOTES


SunLifeAssuranceCompanyofCanadaisamemberoftheSunLifeFinancialgroupofcompanies.©SunLifeAssuranceCompanyofCanada,2014.810-3636-Digital-12-14

Life’s brighter under the sun

Questions? We’re here to help.

Contact your Sales Director or visit www.sunlife.ca today.

We’re dedicated to helping Canadians achieve lifetime financial security.

TMTrustedBrandisaregisteredtrademarkofReader’sDigestAssociationCanadaULC.

Why choose Sun Life Financial?SunLifeFinancialisaleadinginternationalfinancial

servicesorganization.InCanada,westartedselling

lifeinsurancein1871.Sincethen,ourcommitmentto

helpingpeopleachievelifetimefinancialsecurity

throughmarket-leadingproducts,expertadvice

andinnovativesolutionshasmadeusahousehold

name–anamethatpeopletrust.

Forthefifthstraightyear,wewerevotedbyCanadiansasthe“MostTrustedLifeInsuranceCompany”

intheReader’sDigest2014TrustedBrandsSurvey.Inthissurvey,peoplewereaskedtoconsider

whetherthebrandspossessedseveralattributesincludingsuperiorquality,excellentvalue,an

understandingofitscustomers’needsandwhethertheywouldrecommendthebrandtoothers.

We’rehonouredbythisawardandyourcontinuedtrustinus.

Documents

SUN LIMITED PAY LIFE€¦ · 15-pay for ages 0 to 70 20-pay for ages 0 to 65 Pay to age 65 for ages 0 to 44 For joint last-to-die plans, the payment periods available are based on