In an ever widening spiral of life insurance premium increases, Sun Life has just announced the following:
Effective September 17, 2012, we’re changing level cost of insurance (COI) rates for Sun UL, Sun UL MAX and Sun Limited Pay Life. We’re also shifting these products to an age nearest pricing basis, to be consistent with SunTerm, Sun Par Protector and Sun Par Accumulator. With these changes, we expect our products will be consistently competitive within the marketplace.
That’s a double whammy. Not only are they increasing their premiums on level premiums and quick pay products (like many other insurers), they’re also shifting from an ‘actual age’ basis to a ‘nearest birthday’ to calculate your age. This is actually in line with standard industry practice, but doesn’t serve to keep them ‘competitive in the marketplace’.