Payments on new applications - Life and Critical illness insurance
Depending on the premium frequency chosen by the client, payments can be made on a monthly basis through our Pre-Authorized Chequing (PAC) process, or annually by cheque. If PAC is chosen, monthly payments are deducted automatically from the client's account and applied to the premium owing. If the client elects to pay annually by cheque, payments can be remitted to our head office before the anniversary of the policy date.
If the client elects to pay monthly by PAC, either a cheque for the first month's premium or instructions on the application to withdraw the initial premium by PAC is required. Both the cheque and PAC payment methods require the payor's banking information on the application and/or a copy of a void cheque submitted with the application. Payments will not begin until we have received and satisfied all underwriting and issue requirements.
If temporary insurance is applied for and the client elects to pay annually, we require 1/12 of the annual premium to secure temporary insurance. A cheque for the balance of the annual premium is required to settle. However, for SunUniversalLife II, the cheque must be for at least 25% of the annual Cost of Insurance (COI) or annual premium in order to settle. Any money paid with a SunUniversalLife II application will be invested on the settle date in the savings or investment option selected. If an investment is not selected, payments will be invested into the Daily Interest Account.
If the application is declined or rescinded, a full refund will be given for any premiums paid.
If temporary insurance is not applied for, the policy is issued on a "payment on delivery" (POD) basis. Payments do not begin until the client has received the policy and has agreed to pursue coverage with Sun Life Financial.