A smart solution

SunSpectrum Universal Life insurance combines permanent insurance protection with 18 investment account options for tax-preferred savings growth. Coverage can be customized with a variety of optional benefits and the policy fund investment choices have been carefully selected to accommodate your individual risk tolerance.

You should consider this product if:

  • Your priorities include wealth accumulation and maximizing your estate
  • You are comfortable actively managing your insurance coverage within your overall financial plan
  • You want a tax-efficient strategy to grow your non-registered investments or to protect the value of your company

Plan details:

Coverage options

  • Single life
  • Joint first-to-die
  • Joint last-to-die

Death benefit options

For fixed insurance needs, the level death benefit is the less expensive option. With this option, the amount of the death benefit paid to your beneficiary remains level. Here’s how it works: as the policy fund grows through contributions and earned interest, the difference between the death benefit and the policy fund value decreases. The difference is called the “net amount at risk.” The cost of insurance (COI) you must pay each month for the base insurance portion of your policy is based on the net amount at risk. By lowering the net amount at risk, you can lower the monthly COI withdrawal.

With the increasing death benefit option, any amount in the policy fund is added to the death benefit and paid tax-free to the beneficiary. The policy fund is not used to reduce the net amount of risk. Because the net amount of risk stays constant, you will know at purchase exactly what the COI withdrawal for your base insurance will be over the lifetime of your policy.

Investment account options

SunSpectrum Universal Life offers a variety of investment account options. You can choose from one or a combination of these options:

Your money earns daily interest at the floating rate effective for that day.

Your interest rate is guaranteed to stay the same. The rate is based on the term you choose – normally the longer the term, the higher the interest rate. Available terms: 

  • 1-year 
  • 3-year 
  • 5-year 
  • 10-year

The interest rate you earn is based on the performance of 2 funds from the CI Investments Portfolio series:

  • CI Portfolio Series Balanced (40% income/60% equities) 
  • CI Portfolio Series Conservative (60% income/40% equities)

These funds have the objective to balance between income and capital growth.

The interest rate you earn is based on the performance of recognized mutual funds. You select which funds you want to link your account performance to. Your choices include: 

  • CI Signature Income & Growth 
  • CI Value Trust Corporate Class 
  • CI Global 
  • Fidelity North Star©
  • Fidelity Growth America 
  • Fidelity True North©
  • Mackenzie Cundill Cdn Balanced 
  • Mackenzie Cundill Value

An index measures the performance of a representative group of stocks. The interest you earn is based on the performance of the index your account tracks. We offer 3 account options: 

  • Canadian Bond Account – tracks the performance of Scotia Capital Mid Term Bond Index 
  • Canadian Equity Account – tracks the performance of the S&P/TSX 60 
  • American Equity Account – tracks the performance of the S&P 500 

There are no interest rate guarantees for index-linked accounts. Returns may be negative.

Additional benefits

One tax-free withdrawal can be made by the owner from the insured person's policy fund each time he or she becomes disabled by illness or accident for at least 60 consecutive days.
If the insured person is diagnosed with a terminal illness, you may be eligible to take a lump sum advance equal to 50% of the death benefit, to a maximum of $100,000. This is a non-contractual benefit offered by Sun Life Financial at our discretion.

Optional benefits

This option can provide additional insurance protection that the insured person may need temporarily. You may also include this benefit on another person such as a spouse or a business partner. Term costs are renewable at the start of each term.
Child term insurance benefit provides insurance on the life of your children until each reaches the age of 25. At the same time, each child’s ability to purchase individual insurance in the future is protected. When this benefit ends, you have the option to convert it to individual coverage for each child up to 5 times the original benefit amount, without providing any information on the child’s health or lifestyle.
Term critical illness insurance (CII) may pay an additional benefit when the insured person is diagnosed with, and survives for the required period, 1 of the 24 critical illnesses covered under this plan.
Waiver of premium keeps the coverage in place if the insured person becomes totally disabled.
Parent waiver benefit is automatically included when parents purchase a SunSpectrum Universal Life policy to insure a child who is 17 or younger.
Guaranteed insurability benefit allows the policy owner to buy more life insurance regardless of the insured person’s future health, occupation or lifestyle.
Accidental death benefit may pay an additional amount to the beneficiaries if the insured person dies as the result of an accident.

Sample policies

Read examples of text that can appear in a policy. Not all the provisions apply to every policy – it is for your reference. When we issue a policy it governs the relationship between us and the client. The policy can have provisions that are different from those that you've read here.

 SunSpectrum Universal Life - Plus policy fund - One insured person, age 30
 SunSpectrum Universal Life - Level death benefit - One insured person, age 10
 SunSpectrum Universal Life - Joint first-to-die - Plus policy fund
 SunSpectrum Universal Life - Joint last-to-die - Level death benefit