Why ?

Participating life you can count on

Dependable strength and experience Even with all the economic changes since 1871, our par account has been stable, compared to other financial vehicles. As a financially strong, prudently managed Canadian company, you can be assured that this strength, stability and philosophy carries through to the management of our par accounts. Sun Par Protector and Sun Par Accumulator offer competitive returns built on a foundation of solid guarantees and access to one of the strongest par accounts in . Do more with Sun Life Financial We’ve been a trusted and reliable company for over 145 years. And we continue to build on that strong foundation with a focus on market-leading products, expert advice and innovative solutions. Find out how we can do more together. Life’s brighter under the sun. Approachable • Optimistic • Trustworthy • Helpful • Partner • Stable • Le ader • Informative • Honest • Knowledgeable • Approacha ble • Optimistic • Trustworthy • Helpful • Partner • Stable • Le ader • Informative • Honest • Knowledgeable • Approachable • Optimis Talk to your Sales Director today.

© Sun Life Assurance Company of Canada, 2011. 01/INSURANCE AND INVESTMENT JOURNAL NEWS April 2011

INSURANCE Reproduced with permission of The Insurance and Investment Journal Strong growth continues for whole life products Whole annualized premium in Canada was up 35% for the fourth quarter of 2010 and 27% for the entire year, according to statistics from industry research group LIMRA. Market players attribute this growth to a combination of continuing market uncertainty and demographics. LIMRA’s statistics, which life had an uptick too. You long term cash value and death were published in its Canadian tend to see this at times of eco- benefit growth and interested in Individual Life Insurance Sales nomic decline.” estate preservation. This is the Annual 2010 report, show that Ms. Terry says that she thinks best selling of the two products. whole life growth far outstripped whole life will likely maintain its “It’s our mainstream product,” results for both term insurance, sales momentum this year, par- Mr Fryer says, adding that Par which was up 8%, and universal ticularly because of the repricing Accumulator is more of a niche life (UL) insurance which grew that is currently underway in the product targeted towards small by 14% in 2010. Whole life was universal life market (See The business owners or affluent indi- also the only product line that Insurance and Investment Journal, viduals who may be interested in saw an increase in the number February 2011). Higher pricing accessing their cash values, for of policies issued in 2010 at 1% is probably going to put some example to bridge a retirement over 2009, whereas universal life downward pressure on UL sales, income gap or to meet the chang- and term insurance saw declines she adds. “I think whole life sales ing cash flow needs of a busi- Paul Fryer of 4% and 3% respectively. will probably benefit from that.” ness. This product is available “We see these traditional par Due to its strong sales, whole with a minimum face amount of whole life products as really reso- life also grew its market share. Quick success $500,000, whereas Sun Par Pro- nating with clients, in particular “The persistent high sales of The sales performance of the tector is available at a minimum the clients who are nearing their whole life resulted in a market whole life market is attracting death benefit of $50,000. retirement years. So it is becoming share increase of three percent- increased attention from insur- During the fourth quarter, more popular because of demo- age points at the expense of term ers to the product category, adds Sun Life’s new par products cap- graphics. Individuals have some and UL,” notes the report. Ms. Terry. tured 8% market share when money that they want to put into Karen Terry, manager, prod- This is certainly the case for compared with sales for similar a tax-preferred investment like uct research at LIMRA and co- Sun Life Financial Canada. It par products from London Life, participating whole life...” author of the sales report, says launched two new whole life par Great West Life, , What explains the rapid sales the upturn in whole life sales products for sale in the indepen- Empire Life and Equitable Life, success of the company’s new is related to the economic envi- dent channel in 2010. This marked plus Financial’s non- par products? Mr. Fryer says ronment. “With the economic a return to the par market for the par product that is similar to par Sun Life’s reputation, financial downturn, there is a real desire insurer. It had withdrawn two par whole life, says Mr. Fryer. strength and advertising cam- for stability and guarantees. products in 2003 and until last Mr. Fryer says Sun Life re- paigns combined with product Whole life is a steady product. year was only present in the whole entered the par market to fill a demand from advisors and cli- It has the guaranteed premium life market with a non par product hole in the company’s prod- ents are behind this “very warm and there has been a real flight called SunSpectrum Permanent uct shelf. “We were seeing that reception into the market.” to over the past few years Life, which is sold through Sun Canadian consumers were dem- In addition, Mr. Fryer says that in terms of moving away from Life’s career channel. onstrating a renewed interest in advisors know that Sun Life has the more flexible UL products to Paul Fryer, vice-president, participating whole life insur- a very long history in the par whole life.” individual insurance at Sun ance. We’re listening…to what market dating back to the 19th She says when clients pur- Life, says the company’s return our advisors need to make sure century. He underlined that the chase whole life, they have a to the par market has attracted they have a full suite of products company has about $16 billion clearer understanding of what tremendous interest and sales to meet our clients’ needs.” in participating life insurance premiums they’ll be paying and from advisors. In the first six Why then did Sun Life account and is servic- the guarantees associated with months after their launch at the leave the par market in 2003? ing some 1.6 million par policy the product than they would end of June 2010, the two prod- Mr. Fryer says sales trends holders from Sun Life and three have with a more complex prod- ucts – Sun Par Protector and Sun favoured universal life back then of its acquisitions: Clarica, Met- uct such as UL. Par Accumulator – brought in and par whole life sales were ropolitan Life, and Prudential. She adds that the sales increase sales of $9 million in premium, shrinking rapidly. “When we Sun Life has high sales goals trend in whole life began a few mostly in the fourth quarter. looked at where sales were going, for its new par products. “We’re years ago when economic con- “We were really delighted…sales the interest rate environment swinging for the fences. Our goal ditions began to decline. The were significantly greater than at the time and the dividends is to see how far we can take this.” expected and we continue to same pattern was also seen at scale…we made the decision to THE the beginning of the decade. enjoy that upward momentum.” focus our efforts on building the Insurance “The last time we had a reces- Sun Par Protector product is rest of our products.” &Investment sion, in 2001 and 2002, whole specifically for clients looking for Now the situation has changed. JOURNAL