Sun Par Accumulator II

Sun Par Accumulator II may be ideal for clients looking for the comfort of early cash values coupled with the benefits of long-term growth. It may be ideal for pre-retirees looking for estate protection combined with cash value they can access throughout their lifetime.

May be suitable for clients ages 50+ looking for:

  • early cash values coupled with the benefits of long-term growth,
  • asset diversification
  • estate maximization
  • an opportunity for wealth transfer to their children and grandchildren,
  • a business insurance solution that provides high early cash values and long-term growth

Product overview

Sun Par Accumulator II at a glance

Guaranteed premium payment options and issue ages

Single       
Life pay:  0 - 85   
10 pay:    0 - 85   
20 pay:    0 - 80   

Joint
18 - 85
18 - 85
18 - 80

Coverage options

Single Life
Joint first-to-die

  • Survivor benefit and Automatic survivor benefit are included
Joint last-to-die, premiums to first death (life pay only)
Joint last-to-die, premiums to second death

Premium bands

$250,000 - $499,999
$500,000 - $999,999

$1,000,000 - $25,000,000*
* Special quotes available for cases over $25,000,000

Premium rates for amounts above $15,000,000 are subject to reinsurance and underwriting reviews

Underwriting classes

Non-smoker

Smoker

Juvenile

Dividend options

Paid-up additional insurance
Enhanced insurance

  • Lifetime guarantee

Annual premium reduction
Dividends on deposit
Cash payment

Guaranteed cash values

Typically begin at the end of year 1

Policy loans

From $250, up to 100% of the total cash value less one year's interest, less any existing indebtedness may be borrowed from your policy.

Non-forfeiture options

  • Reduced paid-up life insurance
  • Automatic premium loan

Policy fees and payment methods

  • $25.00 annually

$2.25 monthly pre-authorized cheque (PAC)

Optional benefits

Plus premium benefit

  • Available with Life pay 10 pay and 20 pay
  • Available with the following dividend options:
    • Paid-up additional insurance
    • Enhanced insurance

Additional non-par benefits

Accidental death benefit
Guaranteed insurability benefit
Total disability waiver benefit
Owner waiver benefit (death, disability or death and disability)

Child term benefit
Business value protection benefit
Term insurance benefit (T10, T10 with renewal protection benefit, T15, T20 and T30)

Special features

  • Living benefit
Sample policy pages

The following policy wording is provided solely for your convenience and reference. It is incomplete and reflects only some of the general provisions that may be found in some of our insurance policies. We periodically make changes to policy wording and therefore this incomplete sample may not duplicate the wording of any actual issued policy. It is not to be construed or interpreted in any manner as a contract or an offer to contract. The actual policy issued to any given client will govern that relationship.

Sun Par Accumulator II for children

Sun Par Accumulator II is a smart solution for parents or grandparents looking to provide their children or grandchildren with a strong financial foundation through guaranteed, lifetime protection.

Speak to clients who have their own life and health insurance needs covered, their retirement savings plans well underway and additional funds available to protect their children, beyond their regular and future financial commitments. When you're considering what solution to recommend for children, consider the coverage need and ensure the solution fits the need and the budget.

As a participating whole life policy, Sun Par Accumulator II can earn policyholder dividends. Sun Par Accumulator II provides compound growth over time through paid-up additional insurance, stable returns and tax-preferred cash value growth.

Benefits

Plus premium benefit

The plus premium benefit allows clients to pay an additional premium to make the most of tax-preferred cash value growth.

  • Available with the following guaranteed premium payment options:
    •  Life pay
    • 10 pay and
    • 20 pay
  • Available with the following dividend options:
    • Paid up additional insurance
    • Enhanced insurance
  • Any plus premium benefit payment you make is used to buy paid-up additional insurance. This amount is in addition to the paid-up additional insurance being purchased by dividends.
Additional non-par benefits

Term insurance benefit (TIB)

Issue ages: Base lifeAdditional life
T10:  18 - 750 - 75
T10 with RPB:  18 - 65 0 - 65
T15:18 - 70  0 - 70
T20:18 - 65 0 - 65
T30:  18 - 550 - 55
  • Availability: Single life/Joint first-to-die/Joint last-to-die
  • Expires on the policy anniversary nearest the insured person's 85th birthday, or 85th birthday of the oldest insured person
  • Minimum benefit amount: $50,000
  • Maximum benefit amount - Base life: $15,000,000 minus the basic insurance amount per insured person
  • Maximum benefit amount - Additional life: $15,000,000 per insured person
  • All or part of the TIB death benefit is convertible to permanent life insurance without additional medical evidence, up to the policy anniversary nearest the insured person's 75th birthday
  • Available after issue, subject to underwriting requirements
  • Optional Renewal protection benefit (RBP)
    • Available with T10, allows the client to pay additional costs today in exchange for lower renewal costs, compared to T10 without RPB.
    • Cannot be cancelled or added after issue.

Accidental death benefit (ADB)

  • Issue ages: 0 - 65
  • Availability: Single life/Joint first to die/Joint last to die
  • Minimum benefit amount: $10,000
  • Maximum benefit amount: Lesser of two times the insurance amount, including Term insurance benefits, and $1,000,000 ($250,000 for ages 0-17)
  • 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 the policy anniversary only

Child term benefit (CTB)

  • Issue ages: 18 - 55
  • Availability: Single Life/Joint first to die/Joint last to die
  • 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 total across all CTB coverages with Sun Life
  • Premiums 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:  0 - 55
  • Availability: Single Life/Joint first to die/Joint last to die
  • Expires at the policy anniversary nearest the insured person's 60th birthday
  • Benefit will waive up to $50,000 of annual premium/COI across all Sun Life policies
  • Premiums will be waived as long as the insured is disabled
  • Cannot be added after issue

Owner waiver death benefit

  • Issue ages: 18 - 60
  • Availability: Single Life/Joint first to die/Joint last to die
  • The owner must be different than the insured person
  • Expires at the policy anniversary nearest the owner's 70th birthday
  • Benefit will waive up to $50,000 of annual premium/COI across all Sun Life policies
  • Premiums will be waived as long as premiums are charged for the insurance amount and optional benefits in the policy when the owner dies
  • Not available when the Business value protection benefit has been selected
  • Cannot be added after issue

Owner waiver disability benefit

  • Issue ages: 18 - 55
  • Availability: Single life/Joint first to die/Joint last to die
  • The owner must be different than the insured person
  • Expires at the policy anniversary nearest the owner's 60th birthday
  • Benefit will waive up to $50,000 of annual premium/COI across all Sun Life policies
  • Premiums will be waived as long as the owner is disabled
  • Not available when the Business value protection benefit has been selected
  • Cannot be added after issue

Owner waiver death and disability benefit

  • Issue ages: 18 - 55
  • Availability: Single life/Joint first to die/Joint last to die
  • This optional benefit combines the coverages provided by the Owner waiver death and Owner waiver disability benefits, at a discount when compared to their individual benefit premiums.

Guaranteed insurability benefit (GIB)

  • GIB allows policy owners to purchase additional life insurance on insured persons at their attained age without providing evidence of insurability.
  • Issue ages: 0 - 45
  • Availability: Single life only
  • Minimum option amount:  $20,000
  • Maximum option amount:  Lesser of insurance amount (including Term insurance benefit and Enhanced insurance amount) and $300,000 across all Sun Life policies
  • 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 if the Business value protection benefit has 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
  • Availability: Single Life only
  • Minimum option amount: $250,000
  • Maximum option amount: $2,500,000 across all Sun Life 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 if the Owner waiver or Guaranteed insurability benefits have been selected
  • Not available after issue or for substandard risks

Dividends

Dividend options
With Sun Par Accumulator II and Protector II, policyholders have the opportunity to earn dividends on the base insurance portion of their plan. Policyholder dividends are paid annually, on the policy anniversary date, and are not guaranteed. For more information please refer to the Advisor guide
or policy.

Paid-up additional insurance (PUA)

Any dividends credited to the policy are used to purchase paid-up additional insurance which is added to the base insurance amount, creating another layer of permanent protection. This layer, as well as the base insurance amount is the basis for earning dividends, resulting in a compounding effect of dividend earning potential. The paid-up additional insurance has a cash value accumulating over time on a tax-preferred basis.

Enhanced insurance

The enhanced insurance dividend option enables clients to establish a permanent life insurance policy in a cost-effective manner. On each policy anniversary any policy owner dividend credited is used to purchase a combination, determined by Sun Life, of yearly term insurance and paid-up additional insurance. This combined amount of insurance is equal to the enhanced insurance amount set out in the client's policy. Any paid-up additional insurance purchased is added to the existing paid-up additional insurance, creating another layer of permanent insurance. In addition to the base insurance amount, each layer is the basis for earning dividends, resulting in a compounding effect for dividend earning potential.

The maximum enhanced insurance amount depends on the insured person's issue age, smoking status, coverage type, and premium payment period. The minimum enhanced amount is $1,000.

Annual premium reduction

This dividend option can provide clients with a cost-effective way to pay their premiums. We use any policy owner dividends credited to the policy to reduce the premium for the next policy year. If in the future the policy owner dividends exceed the annual premium, then the excess is held in the withdrawable premium fund. This dividend option is only available if the client is paying premiums on an annual basis.

Dividends on deposit (DOD

With this dividend option, any policy owner dividends credited to the policy are automatically deposited into an account similar to a savings account with Sun Life. The policy owner dividends in this account earn interest daily at a rate we determine. The interest is compounded annually and clients have access to these dividends at any time. Any interest earned is taxable.

Cash payment

This option gives the client the opportunity to receive their annual dividends in cash. All or a portion of the cash dividends may be taxable as income.

Participating whole life insurance facts and figures

The following documents provide an in-depth view of participating life insurance and the Sun Life Participating Account. The booklet provides information on how participating life insurance works, the asset mix of the par account, its stability, strength and prudent management philosophy

The fact sheets complement the information in the booklet and are updated quarterly (available as PDFs only).

You can order the booklet and print the fact sheets to share with clients.

Fact sheets:

as of December 31, 2021:

as of September 30, 2021:

as of June 30, 2021:

as of March 31, 2021:

as of December 31, 2020

as of September 30, 2020

as of June 30, 2020

as of March 31, 2020

as of December 31, 2019

as of September 30, 2019

as of June 30, 2019

as of March 31, 2019

as of December 31, 2018

as of September 30, 2018

as of June 30, 2018

as of March 31, 2018

as of December 31, 2017

as of September 30, 2017

Administrative information

Making changes to Plus premium benefit

With the Plus premium benefit, clients can increase the amount of paid-up additional insurance and make the most of the tax preferred cash value growth available with participating life insurance.

For policies issued before 2017, some changes are not permitted as they’ll cause the policy to lose its grandfathered status. In some cases, limited underwriting questions will be required.

Note: Any plus premium increases are subject to our retention and capacity limits and may be subject to underwriting to obtain additional capacity

Plus premium change

Policies issued before January 1, 2017
(G2 tax rules)

Policies issued after 
January 1, 2017
(G3 tax rules)

Allowed?Additional underwriting? Allowed?Additional underwriting?
Add at issueYesNoYesNo
Add within 5 years of issue dateYesNoYesNo
Increase within 5 years of issue dateYesNoYesNo
Decrease then increase up to maximum within 5 years of issue dateYesNoYesNo
After 5th policy anniversary - Decrease then increase back to original amount within 5 years of decreaseYesNoYesNo
After 5th policy anniversary - stop payments and restart within 5 years at same or lower premium levelYesNoYesNo
Add more than 5 years after issueNon/aYesLimited questions
Increase more than 5 years after issueNon/aYesLimited questions
After 5th policy anniversary - Decrease then increase back to original amount more than 5 years after decreaseNon/aYesLimited questions
Decrease then increase up to maximum more than 5 years after issueNon/aYesLimited questions
After 5th policy anniversary - Stop payments and restart more than 5 years after stoppingNon/aYesLimited questions
Add Plus premium at conversion less than 5 years from original term policy issue daten/an/aYesNo
Add Plus premium after a conversion less than 5 years from original term policy issue dateYesNoYesNo
Add Plus premium at conversion more than 5 years from original term policy issue daten/an/aYesLimited questions required if Net Amount at Risk (NAAR) of new plan exceeds original Term face amount
Add Plus premium after a conversion more than 5 years from original term policy issue dateNon/aYesLimited questions
If no additional underwriting is required, complete for E87W - Application for change to an existing life insurance policy
.

Limited underwriting questions

The following questions are found in the additional evidence required section of application E110 (Application for policy change, reinstatement and/or reconsideration of rating)
.
  1. Has the proposed insured ever been treated for or had any symptoms or indication of:
    1. heart attack or any other heart disease or disorder, stroke/TIA, cancer or any other growth(s) or malignancy, diabetes or kidney, lung or liver disease or disorder?
    2. AIDS, HIV infection or any other disease or disorder of the immune system?
  2. Is the proposed insured aware of any symptoms for which they have not yet consulted a physician or received treatment?
  3. Has the proposed insured ever had any medical conditions, not already mentioned, for which they have been or are being investigated, under observation or treated for, or for which they are currently awaiting investigation or test results? (Do not tell us about genetic testing or genetic test results.)
  4. Have the proposed insured ever had any application(s) for life, disability, critical illness or long term care insurance declined, rated, postponed, cancelled or modified in any way?

When completing the application, if your client answers 'yes' to any of the above questions, you will need to provide additional information where possible. Underwriting will assess these details when determining insurability for the requested dividend option. Sun Life may request additional evidence.

Conversions

Sun Par Protector II, Sun Par Accumulator II and Sun Par Accelerator

Without providing evidence of insurability, clients can:

  • Convert to Sun Par Protector II and Sun Par Accumulator II and select any dividend option, or
  • Convert to Sun Par Accelerator with enhanced insurance as their dividend option. Underwriting is not required unless the face amount of the new Par plan (base + Enhanced amount for policies with the enhanced dividend option) exceed the face amount of the original term policy.
  • Convert to Sun Par Protector II or Sun Par Accumulator II with the Plus premium benefit within 5 years from the term policy's issue date.
  • Convert to Sun Par Protector II or Sun Par Accumulator II with the Plus premium benefit after 5 years from the term policy's issue date, within the following guidelines:
    • The net amount at risk (NAAR) of the new par plan cannot exceed the face amount of the original term policy
    • Clients must cancel or reduce any remaining term face amount so that the combined NAAR of the new par plan, plus any remaining term coverage, does not exceed the face amount of the original term policy.

We will require the answer to limited underwriting questions below for the following transactions:

  1. Conversions to a Par policy with a higher death benefit than the term death benefit
  2. Adding the Plus premium benefit at time of conversion if the maximum NAAR of the new participating life insurance plan is greater than the original term policy's (converting policy's) face amount and it is more than 5 years from the original term policy’s issue date.
  3. Adding the Plus premium benefit to a policy more than 5 years after the issue date (or the original term policy’s issue date if it was as result of a conversion).
  4. Switching the dividend option to paid up additional insurance after issue.
If limited underwriting questions are required, complete form E110 - Application for policy change, reinstatement and/or reconsideration of rating

Limited underwriting questions

  1. Has the proposed insured ever been treated for or had any symptoms or indication of:
    a) heart attack or any other heart disease or disorder, stroke/TIA, cancer or any other growth(s) or malignancy, diabetes or kidney, lung or liver disease or disorder?
    b) AIDS, HIV infection or any other disease or disorder of the immune system?
  2. Is the proposed insured aware of any symptoms for which they have not yet consulted a physician or received treatment?
  3. Has the proposed insured ever had any medical conditions, not already mentioned, for which they have been or are being investigated, under observation or treated for, or for which they are currently awaiting investigation or test results? (Do not tell us about genetic testing or genetic test results.)
  4. Has the proposed insured ever had any medical application(s) for life, disability, critical illness or long term care insurance declined, rated, postponed, cancelled or modified in any way?

When completing the applications, if your client answers 'yes' to any of the questions, you will need to provide additional information where possible. Underwriting will assess these details when determining insurability for the requested dividend option. Sun Life may request additional evidence.

1 If enhanced insurance is elected as the dividend option, the maximum face amount includes the base amount plus the enhancement.

Splitting Joint Par policies

We will 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.
Accessing your life insurance policy's cash value
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 $250,000. 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.