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

Administrative information
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.

Converting a SunTerm coverage to a longer term length

Starting with the June 27, 2008 series, clients may convert SunTerm 10 coverage to an eligible 20 year renewable and convertible term life insurance policy, without evidence of insurability, before the earlier of the fifth policy anniversary or the policy anniversary immediately following the insured person's 60th birthday.

For SunTerm policies dated February 16, 2010 or later (the 2010 series of SunTerm), clients may convert SunTerm 10 coverage to an eligible 20 year renewable and convertible term life insurance policy, without evidence of insurability before the earlier of the fifth policy anniversary or the policy anniversary nearest the insured person's 60th birthday. Premiums for the new SunTerm 20 policy will have age nearest rates.

For SunTerm policies dated January 12, 2015 or later, clients may convert a SunTerm 10 or SunTerm 15 coverage to an eligible 20 or 30 year renewable and convertible term life insurance policy, without evidence of insurability before the earlier of the fifth policy anniversary or the policy anniversary nearest the insured person's 65th birthday for term 20 or the policy anniversary nearest the insured person's 55th birthday for term 30. Premiums for the new policy will have age nearest rates.

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

Benefits
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
  • Payable for a maximum of 20 years regardless of how long the benefit is in force
  • 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

If the insured person is diagnosed with a terminal illness, they may be eligible for a lump sum advance of 50% of the death benefit, to a maximum of $250,000.

A living benefit advance is a non-contractual arrangement that may be approved by Sun Life Assurance Company of Canada, at its sole discretion.

Product overview

As an affordable, simple step in a clients financial strategy, SunTerm provides temporary life insurance protection for their short-term and long-term needs, with the flexibility to convert the insurance to meet their needs in the future.

Guarantees

The premiums and the death benefit for SunTerm are guaranteed for the life of the policy as long as the policy owner continues to make their premium payment.

Flexibility and choice

SunTerm gives clients more choice than ever with face amounts ranging from $250,000 to $15,000,000. The following term lengths and issue ages are available:

  • Term 10: 18 - 75
  • Term 10 with Renewal protection: 18 - 65
  • Term 15: 18 - 70
  • Term 20: 18 - 65
  • Term 30: 18 - 55
Coverage options
  • Single Life: Covers one life
  • Joint first-to-die: Covers two lives. The included Survivor benefit and Automatic survivor benefit allow the surviving insured to purchase additional life insurance within 90 days of the first death. Splitting joint coverage into two single policies isn't permitted.
  • Multiple Lives: Covers up to 5 single lives or 4 single lives and 1 joint life per policy. Up to 3 additional coverages can be added at policy anniversary subject to underwriting. Each policy can have up to 9 coverages per life and a total of 15 coverages. Splitting coverages after issue isn't permitted
Convertibility to permanent insurance

SunTerm plans are convertible to permanent life insurance without evidence until the policy anniversary nearest the insured person's 75th birthday (oldest insured's 75th birthday for joint plans).

Convertibility to a longer term length

SunTerm 10 and SunTerm 15 plans issued January 12th, 2015 and later can be converted to Term 20 and Term 30 plans. Conversion must be done before the earlier of the fifth policy anniversary and:

  • the policy anniversary nearest the insured person's 65th birthday for Term 20 (oldest insured's 65th birthday for joint plans)
  • the policy anniversary nearest the insured person's 55th birthday for Term 30 (oldest insured's 55th birthday for joint plans
Policy expiry

SunTerm plans are renewable until the policy anniversary nearest the insured's 85th birthday (oldest insured person's 85th birthday for joint plans).

Leading edge optional benefits
Payment options

Pay by monthly PAC or annual billing.

Sun Life Financial-branded term life insurance conversions allowed across channels

We now allow conversions of all Sun Life Financial-branded term life insurance products across the Career and Wholesale channels. This cross-channel conversion policy applies only to Sun Life Financial-branded term life insurance products. It doesn’t apply to term life insurance benefits, SunSpectrum, or Clarica, MetLife or Prudential-branded term life insurance products.

We are unable to accept conversion applications for Clarica-branded and SunSpectrum products, as these products are exclusive to the Sun Life Financial Career Sales Force channel.

Our decision is based on serving our customers and balancing the needs of both of our distribution channels.

What’s the likely impact of allowing cross-channel conversions for Sun Life Financial-branded term life insurance products?

We expect the impact to be small. We’ve found that term life insurance conversions are rare. They generally occur only when the insured is in poor health. For a client in good health, a new product would likely be less expensive and would mean more compensation for you.

Will this make it easier for advisors in the other channel to get information about my clients?

No. Customers can already authorize us to give out their information to any third party, including another advisor.

Contact: sst@sunlife.com

Marketing material

Sample policy pages