Sun Life Insurance Review 2023

Sun Life's term life insurance policy provides coverage for as long as you need. It is easier to understand, more flexible, and cheaper than permanent life insurance.

For these reasons, most people invest in a fixed life plan to secure their family’s future. Sun Life Financial Canada is one of the four biggest life insurance companies in Canada and offers a range of term life plans, including no-medical exam term life insurance.

Keep reading our comprehensive Sun Life Term Life insurance products review to find out more about its term life plans.

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Who are Sun Life Insurance?

Set up in 1865, Sun Life Financial Inc. (also known as Sun Life Assurance Company) is among the biggest life insurers in the world. Currently headquartered in Toronto, they are a key international financial organization with a presence in many markets, including, but not limited to, Japan, Hong Kong, China, India, Australia, Malaysia, and Vietnam. Besides insurance, Sun Life Financial is highly regarded in the wealth and asset management niche and sells their products through more than 112,000 advisors.

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Sun Life Facts & Financial Information

The Facts

Founded in 1865

Headquartered at Mississauga, ON

Financial Information

$170 billion in Financial Assets

~$21 billion in annual insurance premiums

AM Best Financial Strength Rating: A+

Cost is not the only factor to consider when buying life insurance. Also, check things like insurer’s financial stability. A life insurance policy is a long-term contract. You want an insurer that is on solid footing financially. Otherwise, your family might be left high and dry when they file a claim.

With Sun Life Assurance Company, you can rest assured on this count. Similar to competitors like Canada Protection Plan, it has the second-highest rating (A+) from AM Best — an independent rating agency with a strong focus on the insurance industry. In plain English, this means Sun Life Financial Canada has the wherewithal to make good on its promise to pay the claim — whether that’s 20, 30, or even 50 years from now.

Sun Life Insurance Reviews

So, you may be wondering what Sun Life’s customers have to say.

Unlike many insurers, there are no reviews for Sun Life Financial Canada on Google. Its record on Insureye, however, is not much to write home about. The insurer has a score of 2.3 out of 5 (declined since last year). While mediocre, this score is better than what some of the top insurers in Canada could manage.

When all is said and done, online reviews do not paint the whole picture. People are more likely to complain about mediocre service than write a glowing review when things go smoothly. For this reason, take customer ratings with a pinch of salt and do not base your decision of purchasing a policy solely on them.  

"Sun Life has always been very easy to work with. I love my advisor. I have been dealing with them for over 15 years now and my investments are making money and I feel secure that my loved ones will be taken care of if anything happens to me." - Chuch on InsurEye‍

Products and Features

Term life insurance is often referred as the purest form of life insurance since its concern is to pay out the death benefit to your beneficiary —nothing more. This life insurance coverage does not include those bells and whistles, like an investment component, which only push your premiums up. The coverage, however, is available for a fixed period, called the policy term.  

Sun Life insurance company offers four distinct fixed life plans to suite different financial needs.

SunTerm

This is Sun Life Financial's most popular term life plan and comes with all the standard features, like guaranteed level premium and death benefit.

Features:

• The following terms are available (depending on the applicant’s age) — 10, 15, 20, or 30 years
• Guaranteed level premium and death benefit. That is, the premium rate and the death benefit will not change during a policy term
• Guaranteed renewability. The insurer can renew the policy up to age 85 without submitting proof of good health
• Guaranteed conversion. The insured can convert the fixed life plan into a whole life insurance one up to age 75 without proof of insurability
• Coverage amount available is $250,000 to $15,000,000
• You can exchange SunTerm 10 and SunTerm 15 for a longer-term policy, such as SunTerm 20 or SunTerm 30, without any further medical underwriting
• You can buy the plan as an individual policy or to cover multiple lives
• Ability to add on various riders for more comprehensive coverage
• Comes with a non-contractual living benefit where the insurer may issue 50% of the policy’s face value or $250,000, whichever is less, while the insured is still alive if the latter develops a terminal illness

SunSpectrum Term Insurance

This plan is quite similar to SunTerm Insurance but has a much lower minimum coverage amount — $50,000 as opposed to $250,000.

Features:

• The following terms are available (depending on the applicant’s age) — 10, 15, 20, or 30 years
• Guaranteed level premium and death benefit.
• Guaranteed renewability. The insurer can renew the policy up to age 85 without submitting proof of good health
• Guaranteed conversion. The insured can convert the fixed life plan into a permanent one up to age 75 without proof of insurability
• Coverage amount available is $50,000 to $15,000,000
• You can exchange a SunTerm 10 and Sun Term 15 policy for a longer-term policy, such as SunTerm 20 or SunTerm 30, without proof of insurability
• You can buy the plan as an individual policy or to cover multiple lives
• Ability to add on various riders
• Includes a non-contractual living benefit where the insurer may issue 50% of the policy’s face value or $250,000, whichever is less, while the insured is still alive in the event of a terminal illness diagnosis

Sun Life Go Term Life Insurance

This is a simplified life insurance coverage plan. As such, it does not require a medical exam; just answer a few health questions to see if you qualify. While costlier than a fully underwritten policy, Sun Life Canada is a great option for all those who want quick approval without undergoing a medical examination.

Features

• The following terms are available — 10 and 20 years
• Available to applicants between the ages of 18 and 69
• Guaranteed level premium
• Coverage amount available is $100,000 - $1million
• Automatically renews at the end of the policy term
• Terminal illness benefit. If you develop a terminal illness and have less than 24 months to live, the insurer may pay a living benefit up to 50% of your death benefit
• A 30-day free look period. If you cancel your this life insurance policy within 30 days of its issue, Sun Life insurance company will refund the full amount
• Ability to add temporary coverage, which provides immediate coverage and covers you until your actual policy goes into effect
• Simpler online process
• Doesn’t include riders available with Sun Term and Sun Spectrum

Sun Life Go Simplified Term Life Insurance

This simplified life insurance plan is ideal for people with underlying health issues that make them ineligible for standard life insurance. The plan forgoes medical examination and requires you to answer only three simple health questions. Premium rates, however, are much higher than other fixed life plans offered by Sun Life Financial.

Features

• Term available is 10 years
• Coverage amount available is $50,000, $75,000, or $100,000
• Terminal illness benefit included. Sun Life may pay up to 50% of your life insurance amount in the event of a terminal illness
• Ability to add temporary coverage. It provides instant coverage while Sun Life Financial reviews and processes your application
• Simpler online process
• A 30-day free look period. You receive a full refund if you cancel the policy within 30 days of its issue
• Doesn’t include other riders available with fully underwritten fixed life insurance plans

Riders offered by Sun Life

Life insurance riders are add-ons that allow you to customize your policy and gain certain benefits not available in the basic plan. Sun Life Financial offers many riders, including the following:

• Total disability insurance waiver: With this rider in place, you will be exempted from paying future disability insurance premiums if you become totally disabled.
• Child term insurance: Provides coverage for all your children until they turn 25. Your children can later purchase additional insurance without any medical underwriting.
• Guaranteed insurability benefit: Allows you to buy additional insurance without submitting proof of good health.
• Accidental death benefit: The beneficiary will receive an additional cash benefit on top of the death benefit amount if you die due to injuries sustained in a covered accident.

Sun Life Term Life Insurance Rates

Sun life's fixed life insurance rates depend on several factors, including your choice of insurer. Since each carrier uses a unique algorithm to set rates, the cost of insurance can vary from one provider to another. To find out how affordable Sun Life Financial life insurance policy rates are and how much life insurance you can afford, we collected quotes from the insurer. These quotes are for $400,000 in coverage for a 20-year term length for healthy, non-smoking men and women of different ages.

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Term Life Insurance Review – Price Comparison vs. Competitor Products

Looking for the cheapest fixed life insurance company?

The surest way to get a good rate is by comparing quotes. We ran a price comparison between Sun Life Financial and CIBC Life — one of its main competitors — and the former won hands down. If you are 40-year-old healthy man and looking for a 20-year term policy, you can cut down your insurance cost by more than $3,000 by picking Sun Life over CIBC Life.

Example 1: 40 Year Old Male, Non Smoker, Regular Health, 20 Year Term:

Sun Life $400K - $50.13

CIBC Life $400K - $62.95

Cost Savings over 20 years: $3077

Why We Like Sun Life

Financial Stability

Let’s face it. Life insurance is a huge investment. So, it is essential to your homework when it comes to the financial strength of the insurer you chose. Thankfully, with Sun Life insurance company you can rest easy. The insurer not only boasts a large presence in North America but also enjoys an A+ rating from AM Best.

Excellent Suite of Term Life Insurance Plans

Sun Life Financial has four fixed life insurance plans to suit various needs, including simplified life insurance. Whatever your financial goals are, you are likely to find that Sun Life has a suitable product for you.

Term Plans Convertible up to Age 75

Most competing fixed life plans allow convertibility to whole life insurance up to age 70. Sun Life offers convertibility to age 75.

Convert Your Term Life Plan to Universal Life or Whole Life Insurance

Apart from fixed life insurance, Sun Life Financial offers a robust set of permanent life insurance products. You have the option to convert your fixed life plan to any of the available whole life insurance or universal life plans without evidence of insurability.

FAQ

Is sun life insurance right for me?

There is no one-size-fits-all answer to this question, as the right life insurance policy for each person depends on their individual circumstances and needs. However, some factors to consider when deciding if Sun Life insurance is right for you include the company's financial stability, the types of coverage offered, and the cost of premiums.

How does Sun Life Insurance compare to other insurance companies?

Sun Life Insurance offers a variety of insurance products including life, health, dental, and disability insurance. They have a wide network of providers and a team of experienced professionals to help you choose the right coverage for your needs. They are a financially stable company with a long history of paying claims, and they have a good reputation for customer service.

Sun Life Insurance is a good choice for people who are looking for a reliable and established insurance company.

Conclusion - Is Sun Life Term Insurance perfect for you?

Sun Life Financial is a well-respected insurer with a solid track record. Sun Life offers a bevy of fixed life insurance plans to suit different risk profiles and coverage needs. Sun Life rates, while not the cheapest, are competitively priced and their financial ratings are top-notch. If you are looking for a fixed life plan, Sun Life is one name you should add to your list.

👉  View Our top picks for life insurance in Canada