What is longevity insurance?
Insurance against the possibility that plan members live longer than expected, with Sun Life covering the cost of additional pension payments for longer-lived members.
How does longevity insurance work?
In exchange for monthly premiums, Sun Life makes monthly pension payments into the plan for the lifetime of the covered pensioners. The monthly premiums are determined at contract inception and are locked in. Even if pensioners live longer than expected, Sun Life’s monthly payments will cover the difference.
What are the advantages of longevity insurance for the plan sponsor?
- Reduced pension volatility
- Longevity risk protection
- Retain control of investments
- Benefit security
Access our longevity insurance solution sheet for more details.
Where to start?
Access our longevity insurance quote data requirements.
Contact us for more information.
1Source: Lane Clark & Peacock LLP. as of December 31, 2017.
September 20-22, 2016
ACPM National Conference
Heather Wolfe provided highlights of the evolution of the risk transfer market.
Pension Investment Association of Canada
Heather Wolfe joined a panel to discuss Bell Canada's longevity insurance deal.
Brent Simmons joined a panel of international experts that discussed how different markets are dealing with longevity risk.
- In 2015, BCE and Sun Life completed the first North America longevity insurance deal, covering $5 billion.
- There have been 37 longevity insurance deals in the U.K. since 2009, worth £66.4 billion1