Sun Par Protector and Sun Par Accumulator - Included benefits
Sun Par Protector and Sun Par Accumulator
Guaranteed cash values
Sun Par Protector and Sun Par Accumulator provide you with access to cash when you need it most. The total cash value of your policy is made up of guaranteed cash values, as well as non-guaranteed cash values:
Guaranteed cash value - Both Sun Par Protector and Sun Par Accumulator will provide you with a guaranteed cash value. Your guaranteed cash values are based on several factors including whether you have chosen Sun Par Protector or Sun Par Accumulator, the guaranteed death benefit, your age, gender and smoking status. A schedule of guaranteed cash values is included in your policy. With Sun Par Protector, guaranteed cash values will typically begin at the end of year five. If you choose Sun Par Accumulator, the guaranteed cash values will typically begin at the end of year one because the premiums for this product are higher. With both products, the longer you keep your policy, the greater the guaranteed cash value will become.
Non-guaranteed cash value - Depending on the dividend option you choose, non-guaranteed cash values will build up in your policy on a tax-preferred basis. These cash values are created by dividends used to purchase paid-up additional insurance or when dividends are left on deposit. Non-guaranteed cash values also include the value of the paid-up additional insurance purchased by any plus premium benefit payments.
Policy loans
Policy loans are an easy way to access the cash value of your policy. You can request a policy loan at any time provided there is enough total cash value in your policy. The maximum policy loan you can take is 100% of the total cash value of your policy, less one year’s interest. A variable interest rate is charged on the amount you borrow. You can repay your loan at any time without penalty. If you do not repay the policy loan, the outstanding loan balance will be deducted from the total death benefit of your policy.
Withdrawals
You can also access the cash value of your policy through a withdrawal, if you have selected paid-up additional insurance or dividends on deposit as your dividend option.
Paid-up additional insurance - Any paid-up additional insurance purchased as a result of dividends credited to your policy has a cash value associated with it. Surrendering the paid-up additional insurance allows you to access this cash value. When you take a withdrawal, both the total cash value and the total death benefit will be reduced.
Dividends on deposit - Withdrawals from dividends on deposit are made from the savings account held outside your policy. It includes accumulated dividends we credit to the policy and any accrued interest.
Living benefit
As a policy holder, if you are diagnosed with a terminal illness, you may be eligible to take a lump sum advance equal to 50% of the death benefit, to a maximum of $100,000. This is a non-contractual benefit offered by Sun Life Financial at our discretion.
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