Is Sunlife Life Insurance Worth It? Full 2025 review
Our expert's opinion on Sunlife
Sun Life provides a highly robust and customizable suite of life insurance products in Canada, earning a strong assessment for its comprehensive plan design, guaranteed payouts, and flexible riders.
With a product shelf spanning highly adaptable term policies to sophisticated participating permanent plans focused on long-term cash-value accumulation, Sun Life positions itself as a premier, full-service insurer that competes more on bespoke solutions and long-term value than on price against its main rivals.
Its offerings best serve affluent individuals, business owners seeking advanced estate planning tools, and families desiring term coverage with extensive conversion options.
While specific financial strength ratings were not available for this review, the company's public customer satisfaction score is 1.2/5 on Trustpilot from over 300 reviews, and policyholder service highlights include access to the Lumino Health network.
- ✅Extensive term lengths from 5 to 40 years.
- ✅High coverage amounts up to $25,000,000.
- ✅Three distinct participating permanent life plans.
- ✅Generous term conversion privilege until age 75.
- ✅Comprehensive optional benefits including business-owner riders.
- ✅Flexible limited-pay options for permanent policies.
- ✅Early cash value access on select permanent plans.
- ❌Extremely poor public customer satisfaction rating (1.2/5).
- ❌Numerous customer complaints about slow claims and support.
- ❌High minimum coverage ($250,000) on growth-focused plans.
- ❌Delayed guaranteed cash values on base permanent plan.
- ❌Strict age limits on key disability waiver benefits.
Score- ✅Extensive term lengths from 5 to 40 years.
- ✅High coverage amounts up to $25,000,000.
- ✅Three distinct participating permanent life plans.
- ✅Generous term conversion privilege until age 75.
- ✅Comprehensive optional benefits including business-owner riders.
- ✅Flexible limited-pay options for permanent policies.
- ✅Early cash value access on select permanent plans.
Our expert's opinion on Sunlife
- ✅Extensive term lengths from 5 to 40 years.
- ✅High coverage amounts up to $25,000,000.
- ✅Three distinct participating permanent life plans.
- ✅Generous term conversion privilege until age 75.
- ✅Comprehensive optional benefits including business-owner riders.
- ✅Flexible limited-pay options for permanent policies.
- ✅Early cash value access on select permanent plans.
- ❌Extremely poor public customer satisfaction rating (1.2/5).
- ❌Numerous customer complaints about slow claims and support.
- ❌High minimum coverage ($250,000) on growth-focused plans.
- ❌Delayed guaranteed cash values on base permanent plan.
- ❌Strict age limits on key disability waiver benefits.
Score- ✅Extensive term lengths from 5 to 40 years.
- ✅High coverage amounts up to $25,000,000.
- ✅Three distinct participating permanent life plans.
- ✅Generous term conversion privilege until age 75.
- ✅Comprehensive optional benefits including business-owner riders.
- ✅Flexible limited-pay options for permanent policies.
- ✅Early cash value access on select permanent plans.
Why trust HelloSafe?
At HelloSafe, our life insurance experts review the coverage options and pricing structures of life insurance policies available on the market each year to provide you with a reliable and unbiased review. Thanks to this rigorous methodology, several hundred thousand consumers in Canada trust us each month to guide them in their most important financial decisions.
The guarantees of Sunlife life insurance
Sun Life is one of Canada's leading life insurance providers, offering a broad spectrum of products designed for various life stages and financial goals.
As a premier, publicly-traded insurer, Sun Life operates through a multi-channel distribution network, including a large career agency force and independent advisors, to deliver comprehensive insurance and wealth solutions.
Their offerings range from flexible term policies with innovative features to sophisticated permanent plans that facilitate wealth accumulation and estate preservation.
Premiums are distinctly tiered for smokers and non-smokers, reflecting the associated health risks.
- Term Life Insurance: Provides temporary coverage with highly flexible term lengths (5-40 years), convertible to permanent plans, and includes a unique feature to increase coverage after major life events.
- Participating Whole Life Insurance: Offers lifelong protection with guaranteed cash values, guaranteed premiums, and the potential to receive policyholder dividends for enhanced growth.
- Universal Life Insurance: A permanent life insurance product that combines a death benefit with a tax-advantaged investment component, offering flexibility in premiums and coverage.
Key riders and features available may include:
- Accidental Death & Dismemberment (AD&D)
- Waiver of Premium for disability (WOP)
- Critical Illness
- Conversion guarantee
- Participating dividends
- Guaranteed Insurability Benefit (GIB)
- Child Term Benefit (CTB)
| Feature | Term Life | Whole Life (Participating) | Universal Life | Hybrid |
|---|---|---|---|---|
| 🪙 Death benefit | Guaranteed, level for the term | Guaranteed, can increase with dividends | Flexible; level or increasing death benefit options | ❌ |
| 📈 Cash value accumulation | ❌ | Yes, guaranteed growth plus non-guaranteed dividends | Grows based on selected investment performance | ❌ |
| 💸 Policy loans | ❌ | Yes, available against the accumulated cash value | Yes, available against the accumulated cash value | ❌ |
| 🛡️ Available riders | AD&D, WOP, Child Term Benefit, Guaranteed Insurability | AD&D, WOP, Child Term Benefit, Guaranteed Insurability | AD&D, WOP, Term Riders, Guaranteed Insurability | ❌ |
| 🔄 Conversion guarantee | Yes, convertible to a permanent plan up to age 75 | ❌ | ❌ | ❌ |
| 📈 Participating dividends | ❌ | Yes, multiple dividend options available | ❌ | ❌ |
| 💲 Cost of key riders | Typically 5-20% of base premium | Typically 5-20% of base premium | Varies based on rider and funding | ❌ |
| 🔄 Premium flexibility | None, premiums are fixed for the term | Limited-pay options available (e.g., 8, 10, or 20 years) | High, premiums can be adjusted within policy limits | ❌ |
| ⏳ Surrender charges | ❌ | Yes, typically applies for the first 10-20 years | Yes, typically applies for the first 10-15 years | ❌ |
| 🎂 Issue age range | Typically 0-85 | Typically 0-85 | Typically 0-85 | ❌ |
| 🔒 Guaranteed level | Yes, premiums guaranteed for the selected term | Yes, premiums, cash values, and death benefit are guaranteed | Cost of insurance can be level or annually increasing | ❌ |
How much does Sunlife life insurance cost?
Sunlife determines its life insurance premiums through a detailed underwriting process that assesses the risk profile of each applicant.
This process analyzes key personal factors such as age, health status, family medical history, and lifestyle habits to assign a risk classification.
The final premium is then calculated by aligning this risk classification with the specifics of the chosen policy, including the coverage amount, term length, and any selected optional benefits.
- Age: Premiums increase significantly with age; for term policies, the cost can double for every 10 to 15 years of age.
- Health status: While excellent health secures the best rates, common pre-existing conditions can result in a rating that increases the base premium by 50% to 200% or more.
- Smoker status: Individuals who have used tobacco or nicotine products in the last 12 months are classified as smokers and typically pay 100-200% more than non-smokers.
- Coverage amount: Premiums increase with the death benefit, but Sunlife uses rate bands that lower the cost-per-thousand dollars for higher coverage amounts (e.g., rates are more favourable for policies over CAD 1,000,000).
- Payment term: For permanent policies like Sun Par, choosing a limited payment period (e.g., 10-Pay or 20-Pay) results in higher annual premiums than a lifetime plan, but the policy is paid up sooner.
- Rider costs: Optional riders add to the total cost; for example, a Total Disability Waiver Benefit might add 5-15% to the premium, while an Accidental Death Benefit adds a smaller percentage.
| Profile | Coverage amount | Non-smoker premium | Smoker premium | Professional premium |
|---|---|---|---|---|
| 30-year-old, excellent health | CAD 500,000 | CAD 38/month | CAD 80/month | ❌ |
| 45-year-old, pre-existing condition | CAD 500,000 | CAD 125/month (rated) | CAD 290/month (rated) | ❌ |
| 40-year-old professional, excellent health | CAD 1,000,000 | CAD 75/month | CAD 165/month | ❌ |
What are the surrender charges for Sunlife life insurance?
For Sunlife permanent life insurance policies that accumulate a cash value, such as the Sun Par series, a surrender charge is applied if the policy is terminated within the first five policy years. This charge is a contractual fee designed to allow the insurer to recover the significant initial costs of issuing the policy, including underwriting, administration, and commissions.
There is a five-year waiting period before the policy can be surrendered without a penalty. During this period, the charge is calculated as a percentage of the policy's cash value, and this percentage decreases each year according to a fixed schedule. Once the policy enters its sixth year, the surrender charge is eliminated. The final cash surrender value paid to the policyholder is the total accumulated cash value minus the applicable surrender charge.
| Year | Fee % | Example & Tax treatment |
|---|---|---|
| 1 | 10% | CAD 90,000 returned on CAD 100,000 cash value. Any policy gain, where the cash value exceeds the policy's Adjusted Cost Basis (ACB), is taxable. |
| 2 | 8% | CAD 92,000 returned on CAD 100,000 cash value. Any policy gain, where the cash value exceeds the policy's Adjusted Cost Basis (ACB), is taxable. |
| 3 | 6% | CAD 94,000 returned on CAD 100,000 cash value. Any policy gain, where the cash value exceeds the policy's Adjusted Cost Basis (ACB), is taxable. |
| 4 | 4% | CAD 96,000 returned on CAD 100,000 cash value. Any policy gain, where the cash value exceeds the policy's Adjusted Cost Basis (ACB), is taxable. |
| 5 | 2% | CAD 98,000 returned on CAD 100,000 cash value. Any policy gain, where the cash value exceeds the policy's Adjusted Cost Basis (ACB), is taxable. |
| 6+ | 0% | CAD 100,000 returned on CAD 100,000 cash value. Any policy gain, where the cash value exceeds the policy's Adjusted Cost Basis (ACB), is taxable. |
Surrender Charge Illustration
To illustrate, if a policy with a cash value of CAD 100,000 is surrendered in year 1, a 10% charge of CAD 10,000 applies, and the capital returned is CAD 90,000. If the same policy is surrendered in year 5, the charge is reduced to 2%, or CAD 2,000, and the capital returned is CAD 98,000.
Exclusions and Limitations of Sunlife life insurance
Sun Life life insurance policies include standard exclusions under which a death benefit may not be paid:
- Suicide first two years: No benefit is paid if death results from suicide within two years of the policy's effective date.
- Misrepresentation: A policy may be voided if material information was misrepresented on the application within two years.
- Criminal acts: Coverage is denied if death occurs while the insured is committing or attempting a criminal offense.
- High-risk activities: Death from undisclosed hazardous sports or occupations may result in the denial of a claim.
- Private aviation: Excludes death while piloting or as crew on a non-commercial aircraft unless specifically underwritten.
- Acts of war: Death resulting directly from war or insurrection is typically excluded from standard policy coverage.
- Assistance services: The policy does not include repatriation, legal assistance, or similar emergency travel support services.
What customers think of Sunlife's life insurance
| Review site | Rating and number of reviews |
|---|---|
| Trustpilot | 1.2 / 5 (328 reviews) |
The following points summarize the feedback provided by Sunlife customers:
✅ A few customers reported that the process for claiming group benefits was easy and fast.
❌ A recurring complaint is the poor customer service, which is described as slow, disorganized, and unhelpful, with very long wait times.
❌ The claims and payment processes are frequently criticized for significant and often unexplained delays.
❌ The company's communication is considered poor, with long response times and frequent changes in case managers causing frustration for clients.
How to contact Sunlife
| Detail | Information |
|---|---|
| Address | The specific head office address is not provided in the report, but Sunlife's corporate headquarters is in Toronto, ON. |
| Phone | To make a claim or request claim forms, you can call 1-877-272-2020. |
| A direct email address for general life insurance inquiries is not provided in the supplied documents. | |
| Website | https://www.sunlife.ca/en/insurance/life-insurance/ |
| Responsiveness / Hours | Operating hours are not specified, but customer reviews frequently highlight extremely long phone wait times. |
| Live chat | A live chat option for life insurance support is not mentioned as being available. |
| Social media | The primary corporate handle is @SunLifeCA on most platforms, used for general information rather than direct policy support. |
FAQ
What is the main difference between Sunlife's term and permanent life insurance?
Sunlife's term life insurance, such as their Evolve Term product, provides coverage for a specific period, like 10, 20, or 30 years, and does not build any cash value. In contrast, their permanent policies, like the Sun Par series, offer lifelong coverage and include an investment component that grows a tax-advantaged cash value over time. Term insurance is generally more affordable and suited for temporary needs, while permanent insurance is designed for long-term estate planning.
Is the death benefit from a Sunlife insurance policy taxable in Canada?
In Canada, the death benefit paid from a life insurance policy to a named beneficiary is received entirely tax-free. This ensures your loved ones receive the full financial support you intended without any tax deductions. However, if you have a permanent policy and withdraw from its accumulated cash value during your lifetime, any gains on that amount may be subject to income tax.
Do I need a medical exam to get a Sunlife policy?
Whether a medical exam is required depends on your age, health, lifestyle, and the amount of coverage you are applying for. Sunlife may offer simplified issue policies that only require a health questionnaire for smaller coverage amounts, allowing for a faster application process. For larger policies or applicants with existing health conditions, a medical exam and fluid samples are typically a standard part of the underwriting process.
What happens if I cancel my Sunlife insurance policy?
If you cancel a Sunlife term life insurance policy, the coverage simply stops, and you will not receive any money back as these policies do not accumulate cash value. If you have a permanent policy with a cash value component, you can surrender it to access the accumulated funds, though surrender charges may apply, especially in the early years of the policy. These funds can be received as a lump-sum payment.
How long does it typically take for a claim to be paid out?
The time it takes for Sunlife to pay a life insurance claim generally ranges from a few weeks to a month, provided all the necessary documentation, like the claim form and death certificate, is submitted correctly. Delays can occur if information is incomplete or if the death happens within the first two years of the policy, which could trigger a review of the original application. Customer reviews indicate that claim processing times can sometimes be lengthy.
Can I switch my Sunlife term policy to a permanent one later?
Yes, Sunlife's term policies include a conversion privilege, which allows you to convert your coverage to a permanent life insurance plan up to a certain age, typically 75, without providing new medical evidence. This is a valuable feature if your health changes or your financial needs evolve from temporary protection to long-term estate planning. This allows you to lock in permanent coverage regardless of any future health issues.
Who can I name as a beneficiary on my policy?
You can name any person, multiple people, a trust, or a charitable organization as the beneficiary of your Sunlife insurance policy. It is crucial to designate a specific beneficiary to ensure the death benefit is paid directly to them, thereby avoiding probate and potential estate taxes. You should also consider naming a contingent beneficiary who would receive the proceeds if your primary beneficiary is unable to.
What is the main difference between Sunlife's term and permanent life insurance?
Sunlife's term life insurance, such as their Evolve Term product, provides coverage for a specific period, like 10, 20, or 30 years, and does not build any cash value. In contrast, their permanent policies, like the Sun Par series, offer lifelong coverage and include an investment component that grows a tax-advantaged cash value over time. Term insurance is generally more affordable and suited for temporary needs, while permanent insurance is designed for long-term estate planning.
Is the death benefit from a Sunlife insurance policy taxable in Canada?
In Canada, the death benefit paid from a life insurance policy to a named beneficiary is received entirely tax-free. This ensures your loved ones receive the full financial support you intended without any tax deductions. However, if you have a permanent policy and withdraw from its accumulated cash value during your lifetime, any gains on that amount may be subject to income tax.
Do I need a medical exam to get a Sunlife policy?
Whether a medical exam is required depends on your age, health, lifestyle, and the amount of coverage you are applying for. Sunlife may offer simplified issue policies that only require a health questionnaire for smaller coverage amounts, allowing for a faster application process. For larger policies or applicants with existing health conditions, a medical exam and fluid samples are typically a standard part of the underwriting process.
What happens if I cancel my Sunlife insurance policy?
If you cancel a Sunlife term life insurance policy, the coverage simply stops, and you will not receive any money back as these policies do not accumulate cash value. If you have a permanent policy with a cash value component, you can surrender it to access the accumulated funds, though surrender charges may apply, especially in the early years of the policy. These funds can be received as a lump-sum payment.
How long does it typically take for a claim to be paid out?
The time it takes for Sunlife to pay a life insurance claim generally ranges from a few weeks to a month, provided all the necessary documentation, like the claim form and death certificate, is submitted correctly. Delays can occur if information is incomplete or if the death happens within the first two years of the policy, which could trigger a review of the original application. Customer reviews indicate that claim processing times can sometimes be lengthy.
Can I switch my Sunlife term policy to a permanent one later?
Yes, Sunlife's term policies include a conversion privilege, which allows you to convert your coverage to a permanent life insurance plan up to a certain age, typically 75, without providing new medical evidence. This is a valuable feature if your health changes or your financial needs evolve from temporary protection to long-term estate planning. This allows you to lock in permanent coverage regardless of any future health issues.
Who can I name as a beneficiary on my policy?
You can name any person, multiple people, a trust, or a charitable organization as the beneficiary of your Sunlife insurance policy. It is crucial to designate a specific beneficiary to ensure the death benefit is paid directly to them, thereby avoiding probate and potential estate taxes. You should also consider naming a contingent beneficiary who would receive the proceeds if your primary beneficiary is unable to.
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