Sun Life Offers Annuity Contract

December 3, 2001 ( - Sun Life Assurance Company of Canada launched a segregated funds product that combines the growth potential offered by mutual funds with a built-in investment protection guarantee.

The SunWise Individual Variable Annuity Contract offers a choice of three guarantee options, designed to protect clients’ assets at the maturity of the contract, either 10 years following the deposit or at death, the company said in a statement.

The options are:

  • the Full Guarantee option guarantees 100% of the client’s deposits at maturity and 100% at death, with what the company said was a competitive management expense ratio (MER)
  • the Basic Guarantee option guarantees 75% of the client’s deposits at maturity and 75% at death, with a lower MER. The company said this is designed for professionals and small business owners seeking potential creditor protection.
  • a Combined Guarantee is also available, providing 75% at maturity and 100% at death.

SunWise gives clients access to a range of brand name funds from, among others:

  • Spectrum
  • AGF
  • Fidelity
  • AIC
  • AIM
  • CI
  • McLean Budden
  • Merrill Lynch
  • Sun Life Assurance Company of Canada

SunWise offers funds built on a corporate class structure, which the company said helps investors defer taxes on capital gains in their non-registered investments.

SunWise also boasts an optional Earnings Enhancement Benefit feature.

That helps clients preserve the value for their beneficiaries by awarding an additional lump sum of up to 40% of the total investment earnings, up to a maximum of 40% of the total premium deposits, payable at death.

This benefit increases effective investment returns and helps to offset expenses such as deferred capital gains taxes on the segregated fund investment, the company said.