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- Sun Life offers 5 whole life insurance plans: three participating, one non-participating, and one guaranteed
- Participating policies, like Sun Par Protector, Sun Par Accumulator, and Sun Par Accelerator, offer guaranteed cash value growth after 2–5 years, with coverage levels of up to $15,000,000
- Sun Par Protector and Sun Par Accumulator also offer 4 dividend options: Paid-up additions, premium reductions, cash payment, interest-earning deposits
- SunSpectrum Permanent Life is a non-participating plan that provides coverage of up to $25,000,000 and includes cash value growth
- Sun Life Go Guaranteed Life insurance offers up to $25,000 of coverage and caters to those with pre-existing health conditions
Sun Life is a leading provider in the Canadian insurance market, known for its comprehensive range of financial products. In this review, we’ll take a closer look at its whole life insurance offerings, evaluating their key features, benefits, and pros and cons.
Whether you’re looking for lifetime coverage or a strategic investment option, this review will help you decide if Sun Life’s whole life insurance policies align with your budget and financial goals.
What are the key benefits of Sun Life’s whole life insurance?
Sun Life’s whole life policies offer lifetime coverage with a cash value component that accumulates over time. They also include flexible payment options, allowing you to choose between paying premiums for life (Life Pay) or a limited period of 10, 15, or 20 years (10 Pay, 15 Pay, and 20 Pay).
They also offer 3 coverage options:
- Single Life: Covers one person and pays a tax-free death benefit upon their passing
- Joint first-to-die: Covers two people and pays a tax-free death benefit upon the death of the first insured person. It also includes a survivor benefit that allows the surviving person to apply for a new policy within 90 days without medical underwriting
- Joint last-to-die: Covers two people and pays a death benefit upon the death of the last insured person. One variant of this policy considers premiums fully paid after the death of the first insured person. The other requires premiums to be paid until the death of the last insured person.
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Types of whole life insurance offered by Sun Life
Sun Life offers three participating, one non-participating, and a guaranteed whole life insurance plan.
Participating whole life plans by Sun Life:
- Sun Par Protector II Life Insurance
- Sun Par Accumulator II Life Insurance
- Sun Par Accelerator life insurance
Non-participating whole life insurance by Sun Life:
- SunSpectrum Permanent Life II Insurance
Guaranteed whole life insurance by Sun Life:
- Sun Life Go Guaranteed life insurance
Here’s a complete breakdown of their core differences and key features:
Sun Life’s participating whole life plans
Sun Life’s participating whole life plans include all the standard benefits of whole life insurance: lifetime coverage, fixed premiums, cash value accumulation, and a guaranteed death benefit. Additionally, they pay annual dividends, based on the profits generated by the “par” account, which is funded by participating policy premiums.
Currently, Sun Life offers three participating whole life plans:
- Sun Par Protector II: This policy offers affordable lifetime coverage starting at $50,000 for adults and $25,000 for children aged 0–17. It also includes a cash value component, which starts accumulating after 5 years, and various dividend options, like premium reductions, cash withdrawal, interest accumulation on deposits, and paid-up additions
- Sun Par Accumulator: This policy provides lifetime coverage with early access to cash value starting after the first year. It offers the same dividend options as the Sun Par Protector II plan
- Sun Par Accelerator: Premiums for the Sun Par Accelerator plan are payable for only 8 years, after which it becomes fully paid up. Like the Accumulator plan, it offers early access to cash value starting after the first year. However, unlike other participating plans, its dividend options are only issued as paid-up additions
Key features of Sun Life’s Participating Whole Life Policies
| Category | Sun Par Protector II | Sun Par Accumulator II | Sun Par Accelerator |
| Cash value accumulation | Starts accumulating after 5 years | Start accumulating after 1 year | Start accumulating after 1 year |
| Premium type | Fixed premiums with 3 payment options: Life Pay, 10 Pay, and 20 Pay | Fixed premiums with 3 payment options: Life Pay, 10 Pay, and 20 Pay | Guaranteed premium payment for 8 years |
| Coverage amount range |
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$250,000 to $15,000,000 | $250,000 to $15,000,000 |
| Dividend options |
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Paid-up additions |
| Policy loan availability | 100% of the total cash value minus one year’s interest | 100% of the total cash value minus one year’s interest | 100% of your total cash value minus one year’s interest |
| Tax benefits |
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| Payment flexibility | Monthly or annually | Monthly or annually | Monthly or annually |
| Living benefits |
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| Death benefit guarantee | Guaranteed for life | Guaranteed for life | Guaranteed for life |
| Additional riders | Accidental death benefit, child term benefit, total disability waiver benefit, guaranteed insurability benefit, business value protection benefit, term insurance benefits, etc. | Accidental death benefit, child term benefit, total disability waiver benefit, guaranteed insurability benefit, business value protection benefit, term insurance benefits, etc. | Accidental death benefit, child term benefit, total disability waiver benefit, guaranteed insurability benefit, business value protection benefit, term insurance benefits, etc. |
How are dividends distributed in a Sun Life participating policy?
Dividends in Sun Life participating policies, such as Sun Par Protector and Sun Par Accumulator, are distributed based on the performance of the participating, or “par” account. This account tracks investments, operational expenses, policy claims, and other factors.
Policyholders become eligible for dividends when the par account outperforms expectations, such as receiving higher investment returns or lower mortality claims. Dividends are then allocated by policy type and purchase date to ensure a fair distribution of earnings.
While dividends are not guaranteed and can vary from year to year, Sun Life has an excellent track record of maintaining its dividend scale.
Sun Life whole life dividend scale for 2022-2024
- 2022: 6.00%
- 2023: 6.00%
- 2024: 6.25%
How are the premiums for my Sun Par Protector and Sun Accumulator invested?
Premiums from Sun Par Protector and Par Accumulator are invested in a diversified portfolio managed under the par account. The portion of premiums not required to pay for current benefits and operational expenses is allocated to various asset classes, including:
- Government and corporate bonds
- Equities
- Real estate
- Commercial mortgages
- Private fixed income
Are par account investments affected by market conditions?
Yes, par account investments are affected by market conditions. While Sun Life employs a long-term investment strategy and diversifies across various asset classes to stabilize returns, fluctuations in interest rates and stock prices can still affect the account’s earnings.
Sun Life’s non-participating and guaranteed whole life plans
These policies offer lifelong protection but differ significantly in benefits. The non-participating plan accumulates a cash value over time, while the guaranteed plan focuses solely on lifelong protection without building additional funds. Neither pays annual dividends.
Here’s an overview of their key features:
- SunSpectrum Permanent Life II (non-participating plan): This whole life policy provides a guaranteed death benefit and cash value, which begins accumulating after 2 years. It also offers coverage up to $25,000,000
- Sun Life Go Guaranteed Life Insurance: Designed for individuals with pre-existing health conditions, this plan offers lifetime coverage of up to $25,000 without requiring medical information. Unlike other whole life insurance from Sun Life, it does not offer coverage options like single life, joint-first-to-die, or joint-last-to-die
Key features of SunSpectrum and Go Guaranteed whole life insurance
| Feature | SunSpectrum Permanent Life II | Go Guaranteed Life Insurance |
| Policy type | Non-participating whole life insurance | Guaranteed whole life insurance |
| Cash value accumulation | Guaranteed cash value accumulation after 2 years | No cash value accumulation |
| Premium type | Fixed premiums with 4 payment options: Life Pay, 20 Pay, 10 Pay, and 15 Pay | Fixed monthly premiums until the age of 95 |
| Coverage amount range |
|
$5,000 to $25,000 (can only be purchased in units of 5,000) |
| Policy loan availability | 100% of the guaranteed cash value minus one year’s interest minus any existing loans | Not applicable |
| Tax benefits | Tax-free death benefit and tax-deferred cash value growth | Tax-free death benefit |
| Payment flexibility | Monthly or annually | Monthly |
| Living benefits |
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Lump-sum payment equal to 50% of the insurance amount in case of terminal illness |
| Death benefit guarantee | Guaranteed for life | Guaranteed for life |
| Additional riders | Accidental death benefit, child term benefit, total disability waiver benefit, guaranteed insurability benefit, business value protection benefit, term insurance benefits, etc. | Not applicable |
What are the pros and cons of Sun Life’s whole life insurance?
Sun Life’s whole life policies offer several benefits, including lifelong coverage, fixed premiums, cash value growth, dividend options, and additional riders for enhanced coverage. However, they also have some drawbacks, like higher costs, delayed cash value growth, and limited coverage on certain plans. Let’s take a closer look at the pros and cons of Sun Life Whole Life insurance below:
Pros and cons of Sun Life’s whole life insurance
| Pros | Cons |
| They provide guaranteed lifetime protection with a tax-free death benefit | Policies with more benefits are more expensive |
| They include a cash value component that grows over time and can be accessed during your lifetime | Some policies accumulate cash value only after 2–5 years. |
| Participating policies offer dividend options like paid-up additions and cash withdrawals | Non-participating policies lack annual dividends |
| Premiums remain consistent, with flexible payment options (e.g., Life Pay, 10 Pay) | Some plans, like Go Guaranteed Life, offer limited coverage and flexibility in payment |
How to apply for Sun Life’s whole life insurance?
You can get an instant Sun Life whole life insurance quote from PolicyAdvisor, where you can compare different plans and see how they stack up against other offerings from Canada’s top insurance providers.
For personalized guidance, PolicyAdvisor offers licensed advisors who can provide expert advice tailored to your requirements. We also offer lifetime after-sales support to assist you with any questions or adjustments in the future.
Frequently asked questions
Is Sun Life’s whole life insurance worth it?
That depends on your financial goals and priorities. Sun Life’s whole life insurance is a solid choice if you need guaranteed lifetime coverage for estate planning or to ensure a tax-free inheritance for your beneficiaries. However, whole life insurance policies are typically more expensive than term life insurance, and Sun Life’s comprehensive plans may exceed some budgets.
Can I borrow against my cash value?
Yes, you can borrow against the cash value of your Sun Life whole life insurance policy. The minimum loan amount is $250, while the maximum is up to 100% of the policy’s total cash value, minus one year’s interest.
What happens if I stop paying premiums?
If you don’t pay your premium and don’t have sufficient money in your withdrawable premium fund, Sun Life will take out an automatic premium loan against your policy’s cash value to cover your premiums.
However, if, at any point, the automatic loan amount exceeds your policy’s cash value, you’ll need to make a payment. Failure to do so will result in the cancellation of your policy.
Does Sun Life offer participating policies with dividends?
Yes. Sun Life offers 3 participating policies, namely Sun Par Protector II, Sun Par Accumulator, and Sun Par Accelerator, that pay annual dividends.
Sun Life offers five whole life insurance plans: Sun Par Protector II, Sun Par Accumulator, Sun Par Accelerator, SunSpectrum Permanent Life II, and Sun Life Go Guaranteed Life insurance. The first three are participating policies that offer early access to cash value and pay annual dividends. SunSpectrum Permanent Life II is a non-participating policy that does not pay dividends but accumulates cash value. The Go Guaranteed plan is designed for people with pre-existing health conditions and does not offer dividends or cash value growth.
