Sun Life Unveils Enhanced Living Benefits
October 25, 2008
Enhanced living benefits on Sun Life Financial variable annuities will allow for greater flexibility in building retirement income plans, the company said.
Sun Life’s Income ON Demand and Retirement Escalator living benefits have now been upgraded to the Income ON Demand II Suite and Retirement Income Escalator II, respectively. The former includes Income ON Demand II, Income ON Demand II Plus and Income ON Demand II Escalator.
The suite guarantees income for life, and allows customers to store income when they don’t need it and withdraw it when they do. It also includes a benefit called Income ON Demand II Plus Storage, which has a 7% Bonus for Wait.
The Bonus for Wait is added to the income base each year during the first 10 contract years if no withdrawals are taken during the year. A step-up will lengthen the bonus period, and annual step-ups are based on the highest quarterly value.
The bonus is calculated as a percentage of the bonus base and is added to the withdrawal benefit base, not the account value. Owners can also maximize income by receiving a higher lifetime withdrawal percentage as they age, with the percentage locked in at the age of first withdrawal.
The annual charge for Income ON Demand II is 0.65% (0.85% for joint life), 0.80% (1.00% for joint life) for Income ON Demand II Escalator and 0.95% (1.15% for joint life) for Income ON Demand II Plus. The charge for Income Escalator II is 0.80% annually of the highest Withdrawal Benefit Base for the account year (1.00% for joint life) and is also deducted quarterly from the account value.
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