You asked we listened – Available as of December 7, 2020
The Legacy Settlement Option (LSO) gives greater flexibility on how we pay a death benefit to a Client’s beneficiary/beneficiaries. This option gives a Client the following choices:
It’s a convenient, less expensive, faster and private way for a Client to control what happens to their money upon their death.
The LSO is suitable for Clients with complex family dynamics, dependents with varying degrees of capabilities, blended families, heirs with poor spending habits, or financially-dependent children.
Add the LSO to a new or existing policy
The LSO is available on new and existing Superflex/Income Master* policies. To add it to a new policy, complete and submit:
To add it to an existing policy, complete and submit form 5029 - Legacy Settlement Option.
*Note: We have updated our Superflex/Income Master application to an easier-to-use dynamic PDF. Features of a dynamic PDF include highlighting of any missed information fields and hiding of anything you don’t need to fill out.
If a policy involves an LSO, the beneficiary and their advisor most complete the form 5051 - Beneficiary Claim Statement for Insurance GIC and Trust GICs upon the death of the annuitant. Form 5051 includes all the questions required to set up the income stream for the beneficiary. It includes proof of age, Anti-Money Laundering (AML) questions, and the beneficiary designations required for the payout annuity that will provide the income stream. No payout annuity application is required.
For claims without an LSO, continue to use form 84 – Beneficiary Claim Statement.
We’ve created new marketing material to help support a Client’s decision to add an LSO to a policy:
We’ve also updated existing marketing materials for Insurance GICs** to include new information about the LSO.
The LSO gives Clients peace of mind. They’ll have greater control over how the death benefit from their Insurance GIC is distributed, ensuring they take care of their beneficiaries after their passing.
For any additional questions about the new Legacy Settlement Option, please email SupportWealth@sunlife.com
**An Insurance GIC is an accumulation annuity issued by Sun Life Assurance Company of Canada.