Term Insurance

With more flexibility than ever, SunTerm makes it easier for you to design protection solutions tailored to clients' unique needs. SunTerm provides a term offering that helps clients achieve lifetime financial security.

The opportunity

SunTerm is a customizable life insurance solution for clients. SunTerm can be tailored to meet clients' unique needs and maximize protection for their family or business.

Target client profiles

SunTerm life insurance can address a broad range of client needs. With our different term lengths - T10, T15,T20 and T30, combined with face amounts ranging from $250,000 - $15,000,000, you have the ability to satisfy the unique protection needs of many Canadians

SunTerm allows clients to purchase the coverage they need while meeting their budget concerns. Providing Canadians with lifetime financial security is at the heart of everything you do; for many clients, SunTerm can be the first step toward reaching that goal.

SunTerm is ideal for:

  • Business owners who are concerned with the succession of their company or are looking to protect the value of a key employee.
  • Individuals who are looking to provide future financial security for their family or beneficiaries.
  • Income replacement or mortgage and debt protection needs.
  • Clients who want to take care of non-permanent insurance needs while staying within a comfortable budget.
  • Those who want the comfort of knowing their insurance policy gives them the option to provide lifetime protection if their needs change.

Product details

Policy rescission

Your client may send us a written request to cancel the policy within:

  • 10 days of receiving it from us, or
  • 60 days after the policy is issued, whichever date is earlier.

When we receive the written request we'll refund any amount paid.

See the “Your right to cancel this policy” and the “If you change your mind within 10 days” sections of the policy for details.

Transaction fees

There are no surrender fees associated with this plan.

Conversion options

Coverage can be converted to a permanent life insurance policy for the insured person, for a death benefit not greater than that being converted, without giving us new evidence of insurability. The last date to convert coverage is the policy anniversary nearest the 75th birthday of the insured person.

If the coverage being converted has a Total disability waiver benefit, the permanent life insurance policy may also have a Total disability waiver benefit or equivalent benefit. If the policy contains a Total disability waiver benefit, it cannot be converted while the insured is disabled. However, if we are waiving premiums and the insured person remains disabled at the final conversion date, the policy may be converted to a permanent policy. The premiums on the new policy will continue to be paid while the insured person is disabled.

Any optional benefits included on the insured in the policy being converted may be included in the new policy without evidence if they are available and if they meet all minimums and the age requirements. The amount of each benefit cannot be greater than the amount of that same benefit in the original policy.

Further details can be found in the policy under "Policy summary".

Group plans cannot be converted to a SunTerm policy.

Original age conversions to participating life insurance

Original age conversion overview: Within the first 6 policy years, we’ll allow Clients with the original age conversion wording in their contracts to convert their Term policy to a participating life insurance policy with the same original issue date as the Term policy without having to provide new evidence of insurability. When they convert, the Client must pay the greater of:

  • The difference between the Term insurance premiums from the date of issue and the premiums for the new participating life insurance policy, plus interest* compounded annually.
  • 102% of the cash value of the converted policy, including the cash value of any dividends credited to the policy.

*The interest rate charged on the total participating life insurance premiums from the original policy date to the date the new policy is applied for will be equal to the dividend scale interest rate applicable to the converted policy in each applicable policy year.

Adding the Plus premium benefit: We’ll allow Clients to add the Plus premium benefit to the new participating life insurance policy at time of conversion without having to provide new evidence of insurability if the Term policy being converted is less than 5 years old, otherwise limited underwriting is required (same rules as regular conversions). We do not allow backdating of the Plus premium benefit; however, we may allow a lump sum payment of Plus premium at the time of conversion provided there is enough tax-exempt room. Adding the Plus premium benefit is subject to our capacity and retention rules.

Commissions: Commissions paid on the new participating life insurance policy would be the difference between the commissions already paid for the Term policy and those that are to be paid for the new participating life insurance policy.

Adding the original age conversion contract wording: The original age conversion contract wording is automatically included on Term policies issued from 2019 onwards with face amounts of $20 million or more, and on Term 10 policies with the renewal protection benefit with face amounts of $5 million or more.

The original age conversion contract wording can be manually added to Term policies with face amounts of $5 million or more on request before the policy is issued.

Splitting Joint policies

We will now allow Clients to split their Joint life policies into new single life policies at attained age and current rates without providing new evidence of insurability. The following criteria must be met:

  • The request to split a Joint life plan must be received within 90 days of obtaining a signed legal separation, divorce or dissolution of business partnership.
  • Splitting of Joint plans will be available for currently sold Joint First-to-Die or Joint Last-to-Die permanent life insurance products, and for currently sold Joint First-to-Die Term life insurance products. Splitting of Joint plans will not be allowed on plans sold prior to January 1, 2017.
  • The new single life plans will be the same type of policy as the original Joint plan. If the same type of policy is not available, Sun Life will determine what type of plans can be issued.
  • The face amount of the new single life plans can be no greater than 50% of the original Joint life base plan or a proportional split if more than 2 lives were insured on the Joint plan.
  • Premiums for the new plan(s) must be received at the time of application.
  • Upon splitting of the Joint plan, a full taxable disposition will occur. Any cash surrender value or fund value, less any outstanding loans or premiums, will be paid to the policy owner(s). This may result in tax implications, including increasing taxable income.

Canadian Life and Health Insurance Association (CLHIA) product disclosure requirements

You are responsible for providing clients with a copy of the SunTerm client guide

and a product illustration. This requirement complies with CLHIA product disclosure guidelines effective January 1, 2006 for new products, and January 1, 2007 for existing products.

Making a claim

You may assist clients in making a claim by calling 1 877 272 2020 to request claims forms.
Completed forms, including proof of the insured person’s death are mailed to:

Life Claims Services
Sun Life Assurance Company of Canada
227 King St. S.
PO Box 1601, Station Waterloo
Waterloo ON N2J 4C5
Canada

Payments to the plan

Clients can pay monthly using the Pre-Authorized Cheque plan (PAC) option or pay annually

Renewal Protection Benefit (RPB)

  • Available with SunTerm 10 only
  • Issue ages:  18 - 65
  • Allows the client to pay an additional premium today in exchange for lower renewal premiums compared to SunTerm 10 without the benefit
  • Cannot be cancelled or added after issue

Accidental Death Benefit (ADB)

  • Issue ages: 18 - 65
  • Minimum benefit amount is $10,000
  • Maximum benefit amount is the lesser of two times policy face amount and $1,000,000
  • Expires at the policy anniversary nearest the insured person's 70th birthday
  • Premiums are level and are payable until expiry of the benefit.
  • Can be added after issue at policy anniversary only

Child Term Benefit (CTB)

  • Issue ages: 18 - 55
  • Child eligibility: 0-18 based on age nearest birthday
  • Covers any child named on the application (born, adopted and stepchildren) and automatically covers children born or legally adopted after the date of application. Stepchildren may be added after issue through an application
  • Minimum benefit amount: $10,000
  • Maximum benefit amount: $30,000
  • If the child is insured under CTB on another Sun Life Financial policy, the overall maximum is limited to $30,000
  • Costs are payable to the earlier of 20 years and the policy anniversary nearest the insured person's 70th birthday
  • Benefit expires at the policy anniversary nearest the base insured person's 70th birthday
  • Between the child's 18th and 25th birthdays, the owner will have the right to buy additional life insurance on the life of the child for up to 10 times the amount of the benefit
  • Can be added after issue at policy anniversary only

Total Disability Waiver Benefit (TDB)

  • Issue ages:  18 - 55
  • Expires at the policy anniversary nearest the insured person's 60th birthday
  • Benefit will waive up to $50,000 of annual premium across all Sun Life policies
  • Premiums will be waived as long as the insured is disabled
  • Cannot be added after issue

Owner Waiver Disability Benefit

  • Issue ages: 18 - 55
  • The owner must be different than the insured.
  • Expires at the policy anniversary nearest the owner's 60th birthday
  • Benefit will waive up to $50,000 of annual premium across all Sun Life policies
  • Premiums will be waived as long as the owner is disabled
  • Not available when the Business value protection benefit or Partner protection benefits have been selected
  • Cannot be added after issue

Guaranteed Insurability Benefit (GIB)

  • GIB allows policy owners to purchase additional life insurance for insured persons at their attained age without providing evidence of insurability.
  • Issue ages: 18-45
  • Minimum option amount:  $20,000
  • Maximum option amount:  Lesser of SunTerm face amount and $300,000
  • Elections are available every 3 years and within 31 days of a special event (marriage, birth/legal adoption of a child)
  • A maximum of 8 elections up to a maximum face amount of $2,400,000 are available
  • Expires at the earlier of the policy anniversary nearest the insured person's 55 birthday or once the maximum amount of elections have been made
  • Not available on joint plans
  • Not available if the Business value protection or Partner protection benefits have been selected
  • Not available after issue or for substandard risks

Business Value Protection Benefit (BVPB)

  • Allows business owners to purchase additional insurance as their business grows without providing medical evidence
  • Issue ages: 18 - 65
  • Minimum option amount: $250,000
  • Maximum option amount: $2,500,000 across all Sun Life Financial policies
  • Cumulative maximum equal to the lesser of $10,000,000 or 4 times the option amount
  • Options can be exercised annually within 31 days of the policy anniversary for the first 10 years
  • Expires at the earlier of the 10th policy anniversary or once the maximum amount of elections have been made
  • Not available on joint plans
  • Not available if the Owner waiver, Guaranteed insurability or Partner protection benefits have been selected
  • Not available after issue or for substandard risks

Partner Protection Benefit(PPB)

  • Benefit allows business partners to purchase additional insurance without providing medical evidence upon the death of one of the insured business partners
  • Issue ages: 18 - 65
  • Available on multiple life SunTerm policies only where there are a minimum of three single life coverages
  • Minimum option amount: $250,000
  • Maximum option amount: $10,000,000
  • The maximum amount of new insurance is equal to the deceased partner's insurance amount and will be split proportionately among the surviving partners
  • Expires at the earlier of the policy anniversary nearest the oldest insured person's 70th birthday or after the first death of an insured business partner
  • Not available if Owner waiver benefit, Business value protection benefit or Guaranteed insurability benefits have been selected
  • Not available after issue or for substandard risks

Living benefit

This benefit is offered on Sun Life Assurance Company of Canada life insurance products and is a non-contractual arrangement that we may approve at our discretion on a case-by-case basis. If an insured person is diagnosed with a terminal illness, an application can be made by the policy owner for a lump sum advance of 50% of the insurance amount, to a maximum of $100,000. The lump sum, plus interest, is deducted from the death benefit when paid. This benefit follows the rules of the living benefit program in effect when the policy owner applies to receive the benefit.

Partial conversions with term carryover

Help Clients keep more coverage

Convert to a longer term length

Keep their coverage for longer.

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