What’s inside productoverview

costofinsurance

deathbenefitoptions

jointandmultiplelifecoverages

investmentaccounts

taxation

administrativeinformation

additionalbenefits

SunUniversalLifeADVISOR GUIDE

LIFEINSURANCE|Permanent

Life’s brighter under the sun

ADVISOR USE ONLY

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 2

TABLE OF CONTENTS

PRODUCT OVERVIEW .............................................................................................................. 3

COST OF INSURANCE (COI) OPTIONS ............................................................................... 7

DEATH BENEFIT OPTIONS ..................................................................................................... 10

JOINT AND MULTIPLE LIFE COVERAGES ........................................................................... 12

INVESTMENT ACCOUNTS ..................................................................................................... 15

TAXATION ................................................................................................................................ 23

ADMINISTRATIVE INFORMATION ...................................................................................... 24

ADDITIONAL BENEFITS ......................................................................................................... 29

ADDITIONAL BENEFITS SUMMARY ....................................................................................33

GENERAL DEFINITIONS ......................................................................................................... 34

3 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

FEATURES

Basicinsurancebenefitoptions

• Singlelife• Jointfirst-to-die:upto5livesperbasicinsurancebenefit• Jointlast-to-die:upto2livesperbasicinsurancebenefit• Multiplelife:upto5singlelivesor4singlelivesand1jointlife

(maximum9livesperpolicy)

Costofinsurance(COI)options

• Guaranteedyearlyrenewableterm(YRT)• Guaranteedlevel

Issueages • YRTCOI:0to64• LevelCOI:18to80• Jointlife:18to80• Indexedfaceamount:0to70

Bands • $50,000to$99,999(availableforconversiononly)• $100,000to$249,999• $250,000to$499,999• $500,000to$999,999• $1,000,000+Note: Face amounts of $50,000-$99,999 are available for term conversions only, and only when converting the entire amount of the originating plan. Partial conversions of less than $100,000 are not permitted.

Underwritingclasses • Smoker• Non-smoker

Deathbenefitoptions • Levelinsuranceamount• Insuranceamountplusfund• Fundbuilder• Indexedinsuranceamount(ConsumerPriceIndexorfixedindex

tomaximumof8%)

Administration/policyfee

• None

PRODUCT OVERVIEW

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 4

BENEFITS

Accesstothepolicyfundwhendisabled

Includedonallpolicies;noadditionalcostofinsuranceapplies

Earlydeathbenefit Availableforjointlast-to-diecoverage;noadditionalcostofinsuranceapplies

Optionalbenefits Description Issueages

• 5-,10-,and20-yearrenewableandconvertibleterminsurancebenefit–availableontheinsuredandoneadditionalperson

• Renewabletoage80,convertibletoage70

• 5-yearterm:18to70• 10-yearterm:18to70• 20-yearterm:18to60

Totaldisabilitybenefit–protectionandsavingsoptions

0to55

Ownerdeathbenefit–protectionandsavingsoptions

18to60

Ownerdisabilitybenefit–protectionandsavingsoptions

18to55

Accidentaldeathbenefit(singlelifeonly) 0to65

Guaranteedinsurabilitybenefit(singlelifeonly) 0to50

Executiveguaranteedinsurabilitybenefit(singlelifeonly)

25to60

Coveragedeathbenefit–protectionandsavingsoptions(jointlast-to-dieonly)

18to75

Policyloans • Minimum:$500• Maximum:dependsonfactorssuchaspolicyfundvalue,

marketvalueadjustment,surrendercharges,etc.• Interestrate:dailyinterest+2%

Withdrawals • Minimum:$500• Maximum:uptothecashsurrendervalue,ifavailable• Transactionfeesmayapply

Surrendercharges • Applicablefor10yearsforeachcoverage(basedonamultipleoftheinsurancefactor1)

• HigheronSunUniversalLife Max forthefirst5policyyears

Transactionfees • Uptotwofreetransactionsperpolicyyear• Themaximumfeechargedatanytimeis$100pertransaction

1 Insurance factor for non-rated cases is equal to 100% of the level COI rate based on the issue age and the insurance amount.

PRODUCT OVERVIEW

5 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

WITHDRAWAL ORDER

Standardorder • Dailyinterestaccount(DIA)• FPXportfolioindexaccounts• Accountsbasedontheperformanceofindices• Accountsbasedontheperformanceofmanagedfunds(proportional)• Guaranteedinterestaccount(GIA)

Alternateorder • DIA• GIAs• FPXportfolioindexaccounts• Accountsbasedontheperformanceofindices• Accountsbasedontheperformanceofmanagedfunds(proportional)

Proportionalwithdrawalorder(default)

• Proportionalfromeachaccount(DIA,index,managed)basedonthebalanceineachaccountatthetimeofwithdrawal

NO INVESTMENT BONUS OPTION

Noinvestmentbonusoption

• Mustbechosenattimeofsale• COIdiscountnotavailable• Resultsinlowermanagementfeesforallaccountsbasedontheperformanceof

indices,accountsbasedonperformanceofmanagedfunds,andhighercreditedinterestratesfortheGIAsandDIA

INVESTMENT BONUS AND COI DISCOUNT

Investmentbonus • Mustbechosenattimeofsale• Bonusstartsattheendofyear2andcredits0.40%annually

onthepolicyanniversary• Bonusispaidannuallyattheendofthepolicyyearbasedontheaverageofthe

monthlyaveragepolicyfundvalueinthepreceding12months(netofloansandinterestaccruedonloans)

• Highermanagementfeesthanfornobonusoption• Addedtotheactivityaccount

COIdiscount • Availableonlyforpolicieswithaninvestmentbonus• ReducestheCOIbasedonthefundingratio2andtheinsuredperson’s

agewhentheypurchasethepolicy(seepage9)• Fordiscountcalculationpurposes,thefundingratioisvested

attheendofthe9thyearforthelifeofthepolicy

2 Funding ratio is the net insurance payments (total payments minus the insurance charges for the optional benefits, withdrawals and market value adjustments) divided by the insurance factor accumulated over completed years.

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 6

SunUniversalLife

SunUniversalLife(SunUL)isapermanentlifeinsurancepolicythatincludesinsurancebenefitsononeormoreinsuredswithseveralinvestmentoptionsavailabletoclients.

Ratherthanpurchaseanewpolicy,theinsuranceamountofaSunULpolicycanbeincreasedbyaddinganotherbasicinsurancebenefitonanattainedagebasis.Anyincreaseintheinsuranceamountwillrequiretheinsuredpersontoprovidetheappropriateevidenceofinsurability,unlessaguaranteedinsurabilitybenefitorExecutiveGIBiselected.

Theinsuranceamountofthepolicycanalsobeeasilydecreased.Thereducedinsuranceamount,however,cannotdropbelowSunUL’sminimuminsuranceamountrequirement.

SunUniversalLife Max

SunUniversalLife Max(SunULMax)buildsonthestrengthsofSunUniversalLifeandissuitedforveryaffluentclientswhowanttomaximizetheirfundvalues.SunULMaxoffersmorefundingcapacitythanSunULintheearlyyears.

Minimum and maximum insurance amount

TheminimuminsuranceamountforSunULis$100,000.

Theillustrationsoftwareisrestrictedto$10millionforissueagesuptoage80.Conversionquotesabove$10millioncanberequestedthroughheadoffice.

Minimum insurance amount changes

Inordertominimizeadministrativeexpenses,theminimuminsuranceamountincreaseallowedis$25,000.Forsimilarreasons,theminimuminsuranceamountreductionpermittedis$10,000.

Issue ages and rate classes

SunULisavailablefromissueages0through80onsmokerandnon-smokerrateclasses.Forjointlifebasicinsurancebenefit,however,eachinsuredpersonmustbebetweenages18and80.

Forjuvenilesage0through17,theguaranteedyearlyrenewabletermCOIoptionisavailableandissuedonasmokerrateclassbasis.Fromage18onward,ajuvenileinsuredpersoncanconverttotheguaranteedlevelCOIoptiononanattainedagebasis.Therateapplicablewillbebasedontheratesineffectatthetimeofconversion.

Onallnon-juvenilepolicies,aninsuredpersoncanchangefromthesmokerrateclasstothenon-smokerrateclassbycompletingaRequest for Change in Premium Rate Basis form.

Payment options

SunULallowsformonthlyorannualpayments.Anyadditionalpaymentswillbeconsideredlumpsumpaymentsandcanbemadeatanytime.Theeffectivedateofpaymentwillbethedatethatfundsarereceivedatourheadoffice.PolicyownersnotsetuponPre-AuthorizedChequing(PAC)canelecttoreceiveapaymentnoticeonanannualbasis.

Paymentscanstopatanytime,providedthepolicyfundvalueissufficienttokeepthepolicyinforce.Additionalpaymentsofanyamount(subjecttominimumpaymentrequirements)canresumeatanypointinthefuture.Thepolicyowner’schoiceofpaymentamountwillbeinfluencedbyhis/hergoalswithrespectto:

i) policyfundaccumulation,ii) deathbenefitoption,andiii) preferreddurationofpaymentperiod.

7 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

Minimum payments

Theminimumlumpsumrequirementis$250.

TheminimumPACpaymentisthemonthlycostofinsuranceplusapplicableprovincialpremiumtax:

Where:

monthlycost = monthlycostofinsurance*

+ costofterminsurancebenefit/12

+ costofadditionalbenefits/12

*Monthlycostofinsurance = (AxB)x(1-insurancediscount)/12

A = theannualcostper$1,000ofinsurance

B = theinsuranceamountdividedby1,000

Activity account

WhenwereceiveapaymenttotheSunUniversalLifepolicy,theapplicableprovincialpremiumtaxisdeducted.Themoneyisthenaddedtotheactivityaccount.Fromthisaccount,moneyistransferredtopaythecostofinsuranceforallbasicinsurancebenefitsandadditionalbenefitsonamonthlybasis.Whentheactivityaccountbalancereachesaminimumof$250foreachofthechoseninvestmentaccounts,themoneywillbetransferredoutofthisaccountinaccordancewiththechoseninvestmentmix.

Interest calculation and guarantee

• Interestiscalculateddailyandcrediteddaily.• Theminimumguaranteedinterestratewillneverbelessthan90%oftheyieldona30-dayGovernmentof

CanadaTreasuryBillissuedthatday,less1.75%.Undernocircumstanceswilltheratebelessthan0%.

COST OF INSURANCE (COI) OPTIONS

CostofinsuranceisdeductedfromaSunULpolicyonamonthlybasis.ThecostisdeterminedbymultiplyingtheCOIrateper$1,000bythenetinsuranceamount,anddividingtheresultby12.

TwoCOIoptionsareavailable–guaranteedyearlyrenewabletermandguaranteedlevel.Bothareguaranteedforthelifeofthecoverage.Additionalinsurancepurchasedviatheindexeddeathbenefitoptionortokeepthepolicytax-exemptwillbeissuedonanattainedagebasis,attheCOIratesineffectatthetimeofpurchase.

Guaranteed yearly renewable term COI (YRT)

ThemoretraditionaluniversallifeCOIbasisisguaranteedyearlyrenewableterm.Eachyear,theCOIisbasedontheinsuredperson’sattainedageand,assuch,willincreaseastheinsuredgetsolder.

YRTCOIwillprovidethebestgrowthinshorttomid-termpolicyfundvalue,butlonger-termvalueswillbeverysensitivetopolicyfundvalueinvestmentreturnrates.

YRTCOIisnotavailableonissueagesover64.YRTCOIratesvarybyattainedage,sex,andrateclass.

Conversion to level

TheinsuredpersoncanconverttheinsuranceamountfromyearlyrenewabletermtolevelCOIafterthefirstpolicyyear.Theconversionmustbeonthepolicyanniversarynearesttheir18thbirthdayuptothepolicyanniversarynearesttheir81stbirthday.ThelevelCOIratewillbebasedonratesineffectatthetimeofconversion.

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 8

Guaranteed level COI

Thisoptionisbasedontheinsuredperson’sissueage(notavailablebeforeage18)and,assuch,willnotchangeoverthelifeofthecoverage.

LevelrateswillbehigherthanYRTratesforthefirstseveralyears.Thismeansthatshorttomid-termpolicyfundvalueswillgrowmoreslowlyunderlevelthanunderyearlyrenewabletermCOI.

Conversion to yearly renewable term

LevelCOIcannotbechangedtoyearlyrenewabletermCOI.

LevelCOIratesvarybyissueage,sexandrateclass,andarefullyguaranteedforeachbasicinsurancebenefit.

Comparison of COI options

ThisgraphcomparesyearlyrenewabletermandlevelCOIforamalepreferrednon-smoker,age35.Inthisexample,theYRTCOIbeginstoexceedthelevelCOI21yearsintothepolicy.

CertaincriteriashouldbeconsideredwhenchoosingtheappropriateCOIoption:• Aclientlookingforgreatershort-termpolicyfund

valuewouldbebestservedbyinitiallychoosingtheYRTCOIoption.

• Aclientlookingforlonger-termvaluesmaybebestadvisedtochoosethelevelCOIoptionatissue,tobenefitfromlockingintoafullyguaranteedrateatayoungerage.

Runseveraldifferentillustrationstodeterminewhichscenariobestsuitsclient’sgoals.

Banded COI

TheCOIrates(underbothCOIoptions)varybyfaceamountband.VolumediscountspermitreductionsintheCOIastheinsuranceamountincreases.SunULoffersfiveCOIratebands:

BAND INSURANCE AMOUNT1* $50,000to$99,999(availableforconversiononly)

2 $100,000to$249,999

3 $250,000to$499,999

4 $500,000to$999,999

5 $1,000,000+

* Face amounts of $50,000-$99,999 are available for term conversions only, and only when converting the entire amount of the originating plan. Partial conversions of less than $100,000 are not permitted.

Iftheinsuranceamountisincreasedafterissue,causingthetotalinsuranceamounttomovetoahigherband,thecostofinsuranceapplicabletotheincreasewillbebasedonthoseforthenewband.

9 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

Discounted COI

ThisfeatureisuniquetoSunUL,andisincludedonallpoliciesissuedpriortoNovember18,2005.ForpoliciesissuedafterNovember18,2005,thediscountCOIfeatureisonlyavailableonpolicieswithaninvestmentbonus.ThediscountonCOIrewardsthosepolicyownerswhoachieveacertainfundinglevel.

Thediscountinanypolicyyearisbasedontheinsuredperson’sage(issueageforlevelandattainedageforyearlyterm)andfundingratio.ThediscountgivenwillalsoincreaseasthefundingratiooftheSunULpolicyincreases.

Thediscountfactorsareguaranteedandthecurrentfactors,atsomesampleages,areshowninthechartbelow.Discountsareinterpolatedona“straightline”basisbetweenpoints.

Funding ratio discount table (%)

FUNDING RATIOAge 1.00 1.50 2.00 2.50 3.00+

0-50 0 5 10 15 20

55 0 3.75 7.5 11.25 15

60 0 2.5 5 7.5 10

65 0 1.25 2.5 3.75 5

70+ 0 0 0 0 0

Insurancediscountforeachbasicinsurancebenefitiscalculatedbythefollowingformula:

• Uptoage50:(Fundingratio-1)times10%.• Age51andup:Reducepercentageby0.5peryear.• Maximumfundingratiosusedintheinsurancediscountcalculationis3.0.

Foreachbasicinsurancebenefit,thefundingratiousedtocalculatethediscountisfullyvestedafterthe9thanniversaryofthatbasicinsurancebenefit.Fromthe10thanniversaryonward,thefundingratiousedtocalculatethediscountwillneverbelessthanthefundingratioachievedonthe9thbasicinsuranceanniversary.

Provincial premium tax

ApplicableprovincialpremiumtaxisdeductedfromeverypaymentmadeintoaSunULpolicy*.Theprovincialpremiumtaxisdeterminedbygovernmentlegislationandsubjecttochangeatanytime.CurrentasofApril2016.

Thepercentagethatisdeductedisasfollows:

PROVINCE/TERRITORY TAX RATE (%)

* No premium tax will be deducted from money transferred directly into the service account. However, premium tax will be deducted from monies being transferred from the service account into the policy.

Alberta 3.00

Newfoundland 4.00

NorthwestTerritories 3.00

NovaScotia 3.00

Nunavut 3.00

PrinceEdwardIsland 3.50

Saskatchewan 3.00

Quebec 3.30

Allothers 2.00

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 1 0

Payments less premium tax

ProvincialpremiumtaxwillbedeductedfrompaymentsmadeintoSunULpolicy.Moneyisthenaddedtotheactivityaccount.Percentagesselectedforeachinvestmentaccountmustbeinmultiplesof5%.AfteranyapplicableinsuranceCOIisdeducted,thebalancecanthenbeallocatedtotheclient’sdesiredinvestmentaccounts,providedthereisatleast$250foreachinvestmentaccountintheinvestmentmix(seeminimuminvestmentamountsonpage21).Theentireinvestmentmixcanbechangedatanytime,butthechangecannotbemaderetroactive.Atransactionfeemayapply.

Special direction of a payment

Thepolicyownercanalsodirectthefundsoraspecificpaymentinadifferentwaythanspecifiedintheinvestmentmix,ifawrittenrequestissenttous.

DEATH BENEFIT OPTIONS

AnotherexampleofSunUL’sflexibilityistheabilityofthepolicyownertochoosefromthefourdifferentdeathbenefitoptions.

1. Levelinsuranceamount2. Insuranceamountplusfund3. Fundbuilder4. Indexedinsuranceamount

Thefollowingexamplesassumeincreasingpolicyfundvaluestodemonstratethedifferenceindeathbenefitoptions.

LEVEL INSURANCE AMOUNT

Underthelevelinsuranceamountoption,thedeathbenefitisthegreaterofthebasicinsurancebenefitamountandpolicyfundvalue.Thecalculationofthecostofinsuranceisbasedonnetinsuranceamountatriskdefinedastheinsuranceamountlessthepolicyfundvalue.Thoseclientsthatdonothaveanincreasinginsuranceneedwouldbebestservedbythisoption.

INSURANCE AMOUNT PLUS FUND

Forthoselookingforincreasinginsuranceprotection,theinsuranceamountplusfundoptionwillbemoreappropriatethanthelevelfaceamountoption.Underthisoption,thepolicyfundvalueispaidupondeath,inadditiontotheinsuranceamount.Thenetinsuranceamountatriskforthisoptionremainsconstant.

1 1 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

FUND BUILDER

Fundbuilderisaninsuranceamountplusfunddeathbenefittypethatisdesignedtomaximizeyourpolicyfundvalue.Thetaxexemptmaintenancemethodforthisdeathbenefitis:toincreasetheinsuranceamountandreducebelowtheinitialbasicinsurancebenefit.Thisallowsthenetinsuranceamountatrisktobereducedtoaslowas$10,000andminimizethecostofinsurance.Reduction(s)totheinsuranceamountcanstartasearlyasyear5.Ayearlyrenewabletermcostofinsuranceisrequiredwiththisdeathbenefittype.Underthisoptionthepolicyfundvalueispaidondeath,inadditiontothenetinsuranceamountatrisk.Theinsuranceamountwillbeadjustedupwardstokeeppolicyfundsexemptandthenreducedwhenpossible.

INDEXED INSURANCE AMOUNT

Theindexedinsuranceamountoptionpermitsthebasicinsuranceamounttobeindexedfrom1to8%annuallyorattheCPIrate,andisavailableatissueages0through70.Thenetinsuranceamountatrisk–thedifferencebetweentheindexedbasicinsuranceamountandthepolicyfundvalue–willthereforenotbelevel,asshownbelow.Dependingonthegrowthrateofthepolicyfundvalueandtheindexratechosen,thenetinsuranceamountatriskcouldbeincreasingordecreasing.

INDEXING METHODS

Thepolicyownercanchoosebetweentwodifferentindexingmethods:

Consumer price index (CPI)

Startingonthefirstpolicyanniversary,theinsuranceamountwillbeindexedinproportiontotheannualchangeintheCPI.Withthisoption,thepolicyownerisassuredthattheultimateamountpaidatdeathwillretainthesamepurchasingpowerastheinsuranceamountdidatissue.

Fixed rate

Startingonthefirstpolicyanniversary,theinsuranceamountwillbeindexedbyafixedratechosenbythepolicyowneratissue.

ThepolicyownercanalsochangebetweenthefixedrateandtheCPImethod;however,evidenceofinsurabilitymayberequired.

Minimum indexing rates

Theminimumannualindexrateis0.00%undertheCPImethodand1.00%underthefixedratemethod.Thefixedratemustbeamultipleof0.25%.

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 1 2

Maximum indexing rates

Underbothindexingmethods,themaximumannualindexrateis8.00%.Themaximumindexedinsuranceamountpermittedistwoandahalftimestheinitialinsuranceamount.

Period of indexing

Thepolicyownercannotdeclineaparticularannualincreasebutcanrequesttodeclineallfutureincreases.Unlesstheindexoptioniscanceled,theindexingwillcontinueuntilthepolicyanniversarynearesteachinsuredperson’s85thbirthday.

Changes to death benefit options

Apolicyownercanchangedeathbenefitoptionsortheindexrateatanytime,buttheinsuredpersonwillbeaskedtoprovideevidenceofinsurabilityiftheinsuranceamountorindexrateisincreased.Voluntaryincreasestotheinsuranceamountaresubjecttoaminimumof$25,000.

Theminimumvoluntaryinsuranceamountreductionis$10,000,however,thebasicinsurancebenefitcannotbereducedbelowtheminimuminsuranceamountallowed.

JOINT AND MULTIPLE LIFE COVERAGES

Joint life basic insurance benefit

SunULoffersjointfirst-to-die,jointlast-to-die,andjointlast-to-diewithanearlydeathbenefitoption.

Joint first-to-die

Jointfirst-to-diebasicinsurancebenefitisavailableonuptofivelives.Uponthefirstdeathofaninsuredperson,adeathbenefitispaidtoabeneficiaryandthebasicinsurancebenefitexpires.Eachsurvivorofthejointbasicinsurancebenefitwillbeprovidedwith31daysoffree,convertibleterminsuranceforaninsuranceamountequaltotheinsuranceamountoftheoriginaljointbasicinsurancebenefit.

Joint last-to-die

Jointlast-to-diebasicinsurancebenefitisavailableontwolivesonly.

Joint last-to-die with an early death benefit

Earlydeathbenefitisavailablewhenajointlast-to-diebasicinsurancebenefitwithaninsuranceamountplusfundorfundbuilderdeathbenefitoptionischosen.

Early death benefit

Thepolicyfundvalueofajointlast-to-diebasicinsurancebenefitispayabletothebeneficiary(s)onthefirstdeathwhentheinsuranceamountplusfundorfundbuilderdeathbenefitoptionisselected.Alljointlast-to-diepoliciesissuedonorafterApril3,2002areeligiblefortheearlydeathbenefit(EDB),however,thepercentageisinitiallysettozeroatissue.Theownercanchangethepercentage(inmultiplesof5%,upto100%maximum)atanytimepriortothefirstdeathbysubmittingwrittennotificationortheearlydeathbenefitbeneficiaryelectionand/orthepolicychangeform.

1 3 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

ThetotalamountoftheEDBpayoutonfirstdeathwillbeequaltotheresultofthisformula,calculatedasofthedateofnotification:

(A)x(B-C)

where:

A–istheearlydeathbenefitpercentageasspecifiedbytheownerforthedeceasedinsuredperson

B–isthepolicyfundvalue

C–isthepolicyloanswithinterest

TheEDBforabasicinsurancebenefitwillremainineffectaslongas:

i) theinsuredpersonisnotcoveredasasinglelifeunderthesamemultiplelifepolicy,andii) thejointlast-to-diebasicinsurancebenefitwithwhichthisbenefitwasissuedremainsin-force,andiii) thedeathbenefitoptionisandremainsInsuranceamountplusfundorfundbuilder.

AseparatepercentageofEDBpayoutandbeneficiarycanbeselectedforeachinsuredperson.

Eachinsuredpersonmustbeage80orloweratissue,andwereservetherighttoexcludeEDBonjointlast-to-diepolicieswhereoneorbothinsuredpersonsarehighsubstandardrisks.

Nosurrenderchargesormarketvalueadjustment(MVA)willbeappliedtothepayout.

NoEDBispayableonsimultaneousdeathsoftheinsuredpersonscoveredunderthejointlast-to-diebasicinsurancebenefit.

TheserviceaccountwillnotformapartoftheEDBpayout.

EDBpayoutsaresubjecttotaxationlegislationatthetimeofpayment.Anyelectionchangeafterissueissubjecttoourthencurrentrulesandpractices.

WhenEDBisusedonajointbasicinsurancebenefitinamultiplelifepolicy,thisbenefitwilloverrideanyotherpolicyfundallocationspecifiedforthesameinsuredpersoninthepolicy.ThebenefitpayableatthedeathoftheinsuredpersonwillbereducedbytheamountofEDBpayout.IfaclaimismadefortheEDBandabasicinsurancebenefitanditisimpossibletodeterminewhichoftheinsuredpersonsunderthepolicydiedfirst,theoldestoftheinsuredpersonswillbedeemedtohavediedfirst.

Adding or removing a life – joint

Aninsuredpersoncanbeaddedtoanyfirst-to-diebasicinsurancebenefit,providedthattherequiredevidenceofinsurabilityismet.Aninsuredpersoncanberemovedorsubstitutedonanyjointbasicinsurancebenefit,providedthatthepolicyisnotunderawaiverandthatanynewinsuredpersonprovidestheappropriateevidenceofinsurability.Whenajointbasicinsurancebenefitinamultiplelivespolicyisdropped,theinsurancefactordoesnotchangeandallsurrenderchargesofthatjointbasicinsurancebenefitremainineffect.Theequivalentjointageofthenewjointbasicinsurancebenefitwillbebasedontheattainedagesoftheinsuredpersonsinvolvedonthedateofthesubstitution,additionorremoval.Insomecases,thiscouldbeconsideredadispositionofthepolicyandcouldresultintaximplications.

Multiple lives coverage

Thisfeatureallowsmorethanonepersontobeinsuredunderthesamepolicy.

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 1 4

Coverage and options

Currently,uptofivebasicinsurancebenefitscanbecombinedintooneSunULpolicy,andoneofthemcanbeajointbasicinsurancebenefit.Thepolicyowner(s)canassignaseparatebeneficiarytoeachdeathbenefitinthepolicy.Aninsuredpersoncouldbecoveredbybothasingleandajointbasicinsurancebenefitwithinthemultiplelivescoverage.

UnderaSunULpolicy,eachinsuredpersonmustsatisfytheminimuminsuranceamountrequirement.AllinsuredpersonsmustchoosethesamedeathbenefitoptionbuteachcanchoosetheirownCOIoption.

Uponthedeathofanyinsuredperson,hisorherdeathbenefitwillbepaidtothebeneficiaryandthepolicywillcontinuewiththeremaininginsuredpersons.

Calculation of insurance factor

EachbasicinsurancebenefithasanassociatedinsurancefactoranditisthesumofallinsurancefactorsthatisusedtocalculatetheCOIdiscountforeachbasicinsurancebenefitandtheinvestmentbonusforthepolicy.

Adding or removing a life – multiple coverage

Aninsuredpersonmayberemoved,addedorsubstitutedonanymultiplelivespolicy,providedthenewinsuredpersonsubmitstheappropriateevidenceofinsurability.Whenaninsuredpersonisdropped,theinsurancefactordoesnotchangeandallsurrenderchargesofthatinsuredpersonremain.Whenalifeisadded,anewinsurancefactorisdeterminedforthatinsuredperson,alongwithanewscheduleofsurrenderchargesandcommissions.Insomecases,thiscouldbeconsideredadispositionofthepolicyandcouldresultintaximplications.

Split of policy fund value

Inthecaseofmultiplelivespolicieswiththedeathbenefitoptioninsuranceamountplusfund,thepolicyownermustchooseanallocationmethodforthepolicyfundvalueatissue;thismethodcanbechangedafterissueforafee.Inaddition,thepolicyfundvaluemustbeallocatedtotheinsuredpersonsforthecalculationofthenetinsuranceamount.

Threetypesofpolicyfundvalueallocationsarepossible:

1. proportionaltotheinsuranceamount,2.payableonthefirstdeathclaim,or3. payableonthelastdeathclaim.

ForpoliciesissuedonorafterApril3,2002:

Whenthefullorpartialfundvalueisincludedinadeathclaimsettlement,withdrawalsaremadeandvaluedasoftheendofthedateofnotification.Itwouldbeimperativetogivenoticeinatimelyfashionbecausethegrowthinthefundvalueportionofthedeathbenefit,betweenthedateofdeathanddateofnotification,canbesubjecttotaxation.

Ifthereisanearlydeathbenefitpayableatthetimeofdeathclaimsettlement,thepolicyfundvaluewillbereducedaccordingly.

Policy fund value proportional to insurance amount

Underthisoption,eachinsuredpersonwillhaveanallocatedpolicyfundvalueproportionatetotheinsuranceamount.Thisallocationmethodisavailableonanydeathbenefitoption.Thenetinsuranceamountforeachinsuredperson,underthelevelinsuranceamountandindexedinsuranceamountoptions,isthedifferencebetweenthebasicinsurancebenefitamountandtheallocatedpolicyfundvalue.

Ifaninsuredpersonissubstitutedoraddedtothepolicy,thepolicyfundvaluewouldbere-allocatedinproportiontothenewinsuranceamount.Ifaninsuredpersonisremoved,thepolicyfundvaluewillbere-allocatedtotheremaininginsuredpersons.

1 5 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

POLICY FUND VALUE PAYABLE ON DEATH CLAIM

Policy fund payable on the first death claim

Underthisoption(whichisonlyavailableontheinsuranceamountplusfunddeathbenefitoption),theentirepolicyfundvalueispaidoutonthefirstdeathclaimofaninsuredperson.Anadditionalpaymentmayberequiredtopayformonthlycostofinsuranceandtocoverremainingsurrendercharges.

Policy fund payable on the last death claim

Thisoptionisonlyavailableontheinsuranceamountplusfunddeathbenefitoption.Itpaysouttheentirepolicyfundvalueonthelastdeathclaimoftheinsuredpersons.

INVESTMENT ACCOUNTS

Perhapsthemostuniqueandattractivefeatureofauniversallifeproductistheabilityofthepolicyownertochoosethetypeofvehicleinwhichthepolicyfundvaluewillbeinvested.Thisisparticularlyattractiveforthosewhowanttocontroltheinvestmentmix,ratherthanhavetheinsurancecompanydecideontheinvestmentmix,asisofferedwiththemoretraditionalparticipatinglifeinsuranceproducts.

WithSunUL,thepolicyownercaninvestthepolicyfundvalueinanycombinationofadailyinterestaccount(DIA),avarietyofguaranteedinterestaccounts(GIAs),severalaccountsbasedontheperformanceofindicesandanumberofaccountsbasedontheperformanceofmanagedfunds.Thechoiceofinvestmentaccountswilldependuponthepolicyowner’slevelofrisktolerance.TheSunULInvestorProfileQuestionnairewillhelpclientsdeterminetheappropriateinvestmentmixtomeettheirgoals.

Daily interest account (DIA)

Thisdailyinterestaccountisaninvestmentoptionselectedbytheclient.Itoperatesthesameasanyoftheotherinvestmentaccountsandrequiresaminimumamountof$250toopen.

Interest calculation and guarantee

• Interestiscalculateddailyandcrediteddaily.• Theminimumguaranteedinterestratewillneverbelessthan90%oftheyieldona30-dayGovernment

ofCanadaTreasuryBillissuedthatday,less1.75%.TheabsoluteminimuminterestratefortheDIAis0%perannum.

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 1 6

Guaranteed interest accounts (GIA)

Guaranteedinterestaccounts(GIAs)areavailablefor1-,3-,5-,10-and20-yeartermstomeetpolicyowner’sshort-,medium-andlong-termsavingsneeds.AtaGIA’smaturity,thebalanceisrolledintotheactivityaccount,unlessthepolicyownerrequeststohaveitrollovertoanewaccountofthesameterm.Interestiscrediteddailyandcompoundedannually.

Interest calculation and guarantee

• Theminimumguaranteedinterestratewillneverbelessthan90%oftheeffectiveannualyieldonGovernmentofCanadaBondswiththesametermandeffectivedateastheGIA,less1.75%perannum.

• ThepolicyownerisalsoguaranteedthattheycanneverlosetheirprincipalinaGIA.Theabsoluteminimumguaranteedinterestratesare0%forthe1-and3-yearterms,0.5%forthe5-yearterm,and1.5%forthe10-and20-yearterms.

Market value adjustment (MVA)

IffundsarewithdrawnfromtheGIAs,anMVAmayapply.Generally,ifaGIAisredeemedpriortoitsmaturityandcurrentinterestratesfortheparticulartermaccounthaveincreased,anMVAwillapply.AnMVAdoesnotapplytoamountstakenfromtheindexaccountsorontransfersintothepolicyfromtheserviceaccount.

TheMVAappliestowithdrawals,policyloans,ortransfersfromaGIA,exceptontransfersrequiredtopayformonthlycostofinsuranceortomaintainthepolicy’stax-exemptstatus.WithdrawalsfromtheGIAswillstartwiththeaccountclosesttomaturity.AnMVAwillnotapplytothepaymentofthepolicyfundvalueuponthedeathoftheinsuredperson.

TheMVAformulacanonlyresultinadecreaseinthevalueofthewithdrawal,i.e.nocreditswillbegiven.

MVA formula

The MVA formula for guaranteed interest account (GIA):TheMVA=Wx{1-thelesserof1and[(1+J)D÷(1+K)D]}where:

W = amountwithdrawnortransferredfromtheGIAlayerD = numberofdaystomaturityintheexistingGIAlayerdividedby365J = actualinterestratefortheexistingGIAlayer,excludinganyinvestmentbonusK = currentinterestrateforanewGIAlayerwiththesametermastheexistingGIA

Accounts based on the performance of indices

Interestforeachaccountiscalculateddailyandcrediteddaily.Theseaccountsreflecttheperformanceoftheindicesonwhichtheyarebased.Sincetheunderlyingindicescanincreaseordecrease,theapplicableinterestratecanbepositiveornegative.

Whenclientsselecttheseaccounts,theydonotacquireaninterestinthedesignatedmarketindexorpurchaseanyunitsorlegalinterestinanysecurity.

WewillmaintaintheindexaccountswhicharebasedontheCanadianandAmericanequitymarketsandtheCanadianbondmarketandwewillmaintainthemanagementfeesforthoseaccountsasoutlinedunlessafterthepolicydatethereisamaterialchangein:

• theinvestmentenvironmentformonitoringandreplicatinganindexaccount,or• thelegislationthatappliestolifeinsurancepoliciesthathaveaccountsbasedon

theperformanceofindices.

1 7 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

Available Index Accounts

• AmericanEquity• AmericanTechnology• CanadianBond• CanadianEquity• EuropeanEquity• ForeignEquity• JapaneseEquity• PacificEquity• FPX*Balanced• FPX*Growth• FPX*Income

Seeaccountfactsheetsforfurtherinformationontheunderlyingindicesandhistoricalperformanceratesofreturn.

* FPX is a trademark of The National Post Company. SunUniversalLife is not endorsed, sold or promoted by the National Post Company.

INTEREST GUARANTEES

Themanagementfeevariesdependingontheinvestmentoptionselectedandwillvarydependingonwhethertheinvestmentbonuswasselected.ThemanagementfeeforeachIndexaccountusedintheinterestguaranteecalculationsoutlinedbelowisshownintheinvestmentbonusandtheinvestmentaccountmanagementfeesandinterestratessections.Interestratescanbenegative.

Thedailyinterestratethatappliestoeachoftheindexaccountswillbe:

FPX Income Index Account

100%ofpercentagedailychangeintheFPXIncomeTotalReturnIndex(aFinancialPostindex)minusamanagementfee.

FPX Balanced Index Account

100%ofpercentagedailychangeintheFPXBalancedTotalReturnIndex(aFinancialPostindex)minusamanagementfee.

FPX Growth Index Account

100%ofpercentagedailychangeintheFPXGrowthTotalReturnIndex(aFinancialPostindex)minusamanagementfee.

Canadian Equity Index Account

100%ofthepercentagedailychangeintheStandard&Poor’sTorontoStockExchange(S&P/TSX60)TotalReturnIndex,minusamanagementfee.

American Equity Index Account

100%ofthepercentagedailychangeintheCanadiandollarvalueoftheStandard&Poor’s500(S&P500)TotalReturnIndex,minusamanagementfee.

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 1 8

Foreign Equity Index Account

100%ofthepercentagedailychangeintheCanadiandollarvalueoftheMorganStanleyCapitalInternationalEuropeAustralasiaandFarEast(MSCIEAFE)FreePriceIndex(excludingdividends),minusamanagementfee.

European Equity Index Account

100%ofthepercentagedailychangeintheCanadiandollarvalueoftheMorganStanleyCapitalInternational(MSCI)EuropePriceIndex(excludingdividends),minusamanagementfee.

Pacific Equity Index Account

100%ofthepercentagedailychangeintheCanadiandollarvalueoftheMorganStanleyCapitalInternational(MSCI)PacificFreePriceIndex(excludingdividends),minusamanagementfee.

Japanese Equity Index Account

100%ofthepercentagedailychangeintheCanadiandollarvalueoftheNikkei225Index(includingthedividendspaidontheunderlyingstocks),minusamanagementfee.

American Technology Index Account

100%ofthepercentagedailychangeintheCanadiandollarvalueoftheNASDAQ100Index(includingthedividendspaidontheunderlyingstocks),minusamanagementfee.

Canadian Bond Index Account

100%ofthepercentagedailychangeintheFTSETMXCanadaUniverseBondIndex,minusamanagementfee.

Accounts based on the performance of managed funds

Interestforeachmanagedaccountiscalculateddailybasedontheperformanceofthemutualfundtheaccountislinkedto.Performancefluctuatesandinterestcanbepositiveornegative.AllmanagedaccountsareaffectedbyboththeperformanceofitsdesignatedfundandfluctuationsinthevalueoftheCanadiandollarcomparedtotheappropriateforeigncurrency,whereapplicable.

Whenclientsselecttheseaccounts,theydonotacquireaninterestinthedesignatedfundorpurchaseanyunitsorlegalinterestinanysecurity.

Thedailyinterestratethatappliestoeachmanagedaccountwillbe:

• thepercentagedailychangeintheCanadiandollarvalueofitsdesignatedfund,minustheSunUniversalLifemanagementfeeforthataccount.

• Themanagementfeewillbedifferentdependingonwhetherthecustomerchosetohaveaninvestmentbonusornot.

ManagedaccountsallowclientstodiversifytheirinvestmentsinsidetheirSunUniversalLifepolicy.Thesemutualfundsandtheirindustryleadingmanagershavebeenchosenbasedonabroadselectionofmanagementstylesandassetclasses:bonds/income,Canadianequity,Canadianbalanced,USequity,international/globalequity,aswellasassetallocationorportfoliofunds.

Withthemanagedaccountoptionsclientscanchoosetobuildtheirownportfolioor,ifpreferred,chooseaccountsbasedonmutualfundswithassetallocationandportfolioselectionsdesignedandmonitoredbyinvestmentprofessionals.

SunUniversalLifealsooffersmanagedaccountswithinterestbasedontheperformanceofmutualfundsmanagedbyinstitutionalfundmanagers.Theinvestmentrequiredtoaccesstheseinstitutionalfundsmeansmostinvestorswouldnothaveaccesstothesefundmanagersonanindividualbasis.

1 9 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

Managed account options

• CICanadianInvestment• CIGlobal• CIHarbour• CIHarbourGrowth&Income• CIPortfolioSeriesBalanced• CIPortfolioSeriesBalancedGrowth• CIPortfolioSeriesConservative• CIPortfolioSeriesConservativeBalanced• CISignatureHighIncome• CISignatureIncome&Growth• CambridgeAmericanEquityCorporateClass• FidelityGlobalFidelity• U.S.FocusedStockFund

• FidelityNorthStar®• FidelityTrueNorth®• MackenzieCundillCanadianBalanced• MackenzieCundillValue• MackenzieIvyForeignEquity• SunLifeMFSUSEquity• SunLifeMFSBalancedGrowth• SunLifeMFSCanadianEquityValue• PHNBalanced• PHNBond• PHNCanadianEquity• PHNDividendIncome

Moreinformationonthemanagedaccountoptions,assetclassandmanagementstyleaswellastheguaranteedinterestaccountsandindexaccountsisavailableontheSunUniversalLifeInvestmentaccountfactsheets,andtheInvestmentaccountoptionsbooklet.

Wemayneedtorename,mergeorwithdrawamanagedaccount.Thismayoccurbecauseofchangesintheunderlyingmutualfundoritsmanagement.

Ifwewithdrawanaccountinwhichaclienthasabalance,wewillprovideinformationonotheraccountsavailableintowhichaccountbalancesmaybedirected.

Minimum investment amounts

AnimportantfeaturetorememberwithSunUListheminimumtransferthreshold.Currently,theminimumtransferthreshold,otherthantheactivityaccount,is$250.Iftheinvestmentmixcontainsmorethanoneinvestmentaccount,thepaymentmustbelargeenoughsothateachinvestmentmixpercentageequatestoatleast$250.Oncethatminimumamountisreached,thepolicyfundswillautomaticallybedispersedinaccordancewiththeinvestmentmix.

Forexample,ifapolicyownerwishestoplace5%inanyparticularaccount,anetpaymentof$5,000($250/5%)willberequiredbeforethenewaccountcanbeopened.Iftheminimumopeningbalanceisnotmetforeachandeveryinvestmentaccount,allofthepolicyfundswillbeleftintheactivityaccountuntileachminimumbalancehasbeenachieved.

Smallpercentagesshouldbeavoidedifthepaymentsarenotsubstantial,torefrainfromkeepingfundsintheactivityaccountforlongperiodsoftime.

Investment account asset class and management fee

Themanagementfeeandassociatedminimuminterestrateusedintheinterestguaranteecalculationforaparticularinvestmentaccountisdependentonwhetherthepolicyownerhasselectedtohaveaninvestmentbonusonthepolicyorchosennottohavethebonus.

Theassetclass,managementstyle,managementfeesandguaranteedminimuminterestrates(ifapplicable)foreachinvestmentaccountareshownonthepagesthatfollow.

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 2 0

FIXED INCOME OPTIONS

Dailyinterestaccount(DIA) • Interestearnedbasedon90%of30-dayGovernmentofCanadaT-Bills.• Noinvestmentbonusoptioncurrentlyprovidesaninterestrateincreaseof

0.40%tothecreditedrate.Thisinterestrateincreasemaychange.

Guaranteedinterestaccounts(GIAs)

• Interestearnedbasedon90%ofGovernmentofCanadabondsofthesameduration.

• Noinvestmentbonusoptioncurrentlyprovidesaninterestrateincreaseof0.40%tothecreditedrate.Thisinterestrateincreasemaychange.

• Guaranteedminimuminterestratesof:

•1-yearGIA:0%•3-yearGIA:0%•5-yearGIA:0.5%•10-yearGIA:1.5%•20-yearGIA:1.5%

Index account options1 Asset class

Management style

Sun UL management fee with bonus

Sun UL management fee with no bonus

AmericanEquity USequity N/A 3.00 2.00

AmericanTechnology

USequity N/A 3.00 2.00

CanadianBond Bond/income N/A 3.00 2.00

CanadianEquity Canadianequity N/A 2.75 1.75

EuropeanEquity International/globalequity N/A 2.00 1.00

ForeignEquity International/globalequity N/A 2.00 1.00

JapaneseEquity International/globalequity N/A 3.25 2.25

PacificEquity International/globalequity N/A 3.00 2.00

FPXBalanced Canadianbalancedequity N/A 3.20 2.20

FPXGrowth Canadianbalancedequity N/A 3.40 2.40

FPXIncome Bond/income N/A 2.80 1.80

1 Minimum rate of return is based on Canadian dollar values of the indices, and the contractual guaranteed minimums stated apply to Canadian policies only.

2 1 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

Managed account options2 Asset class

Management style

Sun UL management fee with bonus

Sun UL management fee with no bonus

CIPortfolioSeriesBalanced

Assetallocation Assetallocation 1.00 0.00

CIPortfolioSeriesConservative

Assetallocation Assetallocation 1.00 0.00

CICanadianInvestment

Canadianequity Value 1.00 0.00

CIGlobal International/globalequity

Growth 1.00 0.00

CIPortfolioSeriesBalancedGrowth

Assetallocation Assetallocation 1.00 0.00

CIPortfolioSeriesConservativeBalanced

Assetallocation Assetallocation 1.00 0.00

CIHarbour Canadianequity Blend 1.00 0.00

CIHarbourGrowth&Income

Canadianbalanced Blend 1.00 0.00

CISignatureHighIncome

Bond/income Blend 1.25 0.25

CISignatureIncome&Growth

Canadianbalanced Blend 1.00 0.00

CambridgeAmericanEquityCorporateClass

USequity Blend 1.00 0.00

FidelityU.S.FocusedStockFund

USequity Blend 1.00 0.00

FidelityGlobal International/globalequity

Blend 1.00 0.00

FidelityNorthStar® International/globalequity

Blend 1.00 0.00

FidelityTrueNorth® Canadianequity Blend 1.00 0.00

MackenzieCundillCanadianBalanced

Canadianbalanced Value 1.00 0.00

MackenzieCundillValue

International/globalequity

Value 1.00 0.00

MackenzieIvyForeignEquity

International/globalequity

Blend 1.00 0.00

SunLifeMFSUSEquity

USequity Blend 2.15 1.15

SunLifeMFSBalancedGrowth

Canadianbalanced Growth 2.15 1.15

SunLifeMFSCanadianEquityValue

Canadianequity Value 2.15 1.15

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 2 2

Managed account options2 Asset class

Management style

Sun UL management fee with bonus

Sun UL management fee with no bonus

PHNBalanced Canadianbalanced Growthatareasonableprice(GARP)

2.15 1.15

PHNBond Bonds/income Bond 2.15 1.15

PHNCanadianEquity Canadianequity Growthatareasonableprice(GARP)

2.15 1.15

PHNDividendIncome Canadianequity Growthatareasonableprice(GARP)

2.15 1.15

2 Initially available on policies issued November 18, 2005 or later.

Investment bonus for policies issued prior to November 18, 2005

ASunULpolicywillpayaninvestmentbonusequaltoagivenpercentagetimestheinterestearnedinthevariouspolicyfundaccounts,overthe60monthsimmediatelyprecedingthebonuspayout.Thisbonusispaidonthetenthpolicyanniversaryandreoccursoneveryfifthanniversarythereafter.Thebonusinterestwillbeaddedtotheactivityaccount.Theinvestmentbonuspercentageis10%ifthecorrespondingfundingratioislessthan2.0and20%forafundingratioequaltoorexceeding2.0.

Investment bonus for policies issued November 18, 2005 or later

Thepolicyownerhastochooseatthetimeofsalewhethertohaveaninvestmentbonusornot.Thiscannotbechangedwithinthesamepolicyafterissue.Thechoiceinfluencesthepolicyowner’slong-terminvestmentandwealthmanagement.

Choosingtohaveabonusrewardsthepolicyownerfor:

• keepingthepolicyineffect,and• makingadditionalpaymentsintothepolicy.

Ifabonusischosen,thepolicyownerwillalsoreceivetheCOIdiscount–seeDiscountedCOIonpage9.

Beginninginyear2,thebonuspays0.40%annuallyonthepolicyanniversary,basedontheaverageofthemonthlyaveragetotalpolicyfundvalueinthepreceding12months.Thetotalpolicyfundvalueisnetofloansandaccruedloaninterest.Thebonusdoesnotapplytoserviceaccountvalue.Thebonusisaddedtotheactivityaccount.

Ifthepolicyownerchoosesnottohaveaninvestmentbonus,therearelowermanagementfeesontheindexandmanagedaccountsandhighercreditedinterestratesfortheguaranteedinterestaccounts.Thisresultsinahighercreditedrateofinterestandmoreimmediategrowthinthevalueoftheaccounts.Thisisanoptionthatisappealingtopolicyownerswholiketokeepmanagementfeestoaminimum.

ChoosingnottohaveaninvestmentbonusmeansthepolicyisalsonoteligiblefortheCOIdiscount.

PleaseseetheInvestmentaccountassetclassandmanagementfeesectiononpage21forthemanagementfeesthatapplytoinvestmentaccountswhentheinvestmentbonusisselected.

2 3 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

TAXATION

TaxationoftheSunULinsurancepolicyandvariousfeaturesofferedwithinthepolicyarebasedonthetaxrulesintheIncomeTaxAct(Canada)astheyrelatetolifeinsurancepolicies.Theserulesmaychangeatanytime,andadministrationofthepolicyanditsfeatureswillchangewhererequiredbasedonthoserules.

SunULisatax-exempt,non-registeredlifeinsurancepolicy.ThemaximumpaymentpermittedtoaSunULpolicyhasbeensettoensurethatthepolicyretainsitsexemptstatus.Inadditiontotestingeachpaymenttothemaximumpermitted,testingwillbeperformedateachanniversarytoseeiftheSunULpolicyremainsexempt.IfaSunULpolicyisabouttobecomenon-exemptduetoanexcessivepolicyfundvalueinrelationtothedeathbenefit,thepolicyownerwillhavethefollowingoptionsavailabletokeepthepolicyexempt.Eachpolicyowner,atissue,mustchoosebothanexemptinsuranceamountadjustmentandanexemptpolicyfundadjustment.

Maintaining the exempt status by insurance amount adjustments

Ateachpolicyanniversary,acomparisonofthepolicyfundvalueismadetothetax-exemptlimit.Ifthepolicyfundvalueexceedsthetax-exemptlimit,wemakeanadjustmenttoyourclient’spolicy,accordingtothemethodselected.

Fourtypesofinsuranceamountadjustmentsareavailable:

i) retaintheinsuranceamount(deathbenefitisnotautomaticallyincreased);ii) increasethedeathbenefitbyupto8.0%*(thedefaultoption);iii) increasethedeathbenefitbyupto8.0%*andthenreverse,whenpossible,totheinitialinsurance

amountatissue;oriv) increasethedeathbenefitbyupto8.0%*andthenreverse,whenpossible,tobelowtheinitial

insuranceamountatissue.Thiswilloptimizethegrowthofthepolicyfundvalue.Thisoptionisonlyavailablewithafundbuilderdeathbenefit.

*Themaximumdeathbenefitisthelesserof:

a) Twoandahalftimestheinitialinsuranceamountandb) ourretentionlimit.

COIfortheincreaseddeathbenefitaredeterminedonanattainedagebasis(orattainedequivalentjointageforjointlifebasicinsurancebenefit)andthecurrentrateseriesineffect.

Non-exempt policy fund adjustments

Anynon-exemptpolicyfundsaccruingunderaSunULpolicycanbedirectedasfollows:

i) automaticallydirectedtotheserviceaccount(thedefaultoption),orii) paidincashtothepolicyowner.

Thesetransactionsareconsidereddispositionsandmayresultintaxableincometothepolicyowner.

Service account

Theserviceaccountisanon-exemptsidefundattachedtoaSunULpolicy.Atissue,thepolicyownercanchoosewhethertoinvestanyfutureserviceaccountbalanceintheDIA,arangeofGIAs,oneof11accountsbasedonperformanceofindicesoroneof25accountsbasedontheperformanceofmanagedfunds.

AsroombecomesavailablewithinthetaxexemptportionofaSunULpolicy,fundsintheserviceaccountwillautomaticallybetransferredintothepolicy,tothemaximumextentpossible.ThesetransfersaredonewithoutanyMVAs.

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 2 4

OntheterminationofaSunULpolicy,thebalanceintheserviceaccount,ifany,willbepaidtothepolicyowner(orestate,ifterminationisduetodeath).Serviceaccountfundsarenotpaidtax-freetothebeneficiary.

Nopremiumtaxwillbedeductedfrommoneytransferreddirectlyintotheserviceaccount.However,premiumtaxwillbedeductedfrommoniesbeingtransferredfromtheserviceaccountintothepolicy.Theminimumpaymentapolicyownercanmakeintotheserviceaccountofthepolicyis$250.However,transfersbetweentheserviceaccountandthepolicyfundvalue(fortax-exemptpurpose)arenotsubjecttoanyminimum.

Forincometaxpurposes,theinterestearnedontheserviceaccounteachpolicyyear,willbereportedtothepolicyownerattheendofeachcalendaryear.

ADMINISTRATIVE INFORMATION

Withdrawals

EasyaccesstothepolicyfundvalueisanotherattractivefeatureofaSunULpolicy.

Awithdrawalreferstoapolicyowner’srequestforfunds.Thisdoesnotincludepaymentofmonthlycostofinsurancefromthepolicyfund.Awithdrawalwillbeconsideredapartialdispositionofthepolicyandmayresultintaxableincometothepolicyowner.

Theminimumwithdrawalamountis$500andthemaximumisthecashsurrendervalue(CSV).Awithdrawalwillcauseareductioninthedeathbenefitbytheamountofthewithdrawal.Forthelevelinsuranceamountandindexedinsuranceamount,awithdrawalwilldecreasethemostrecentinsuranceamountpurchased.SurrenderchargeswillapplytotheamountwithdrawnonlyiftheresultingCSVdropstozero.Marketvalueadjustmentscouldalsoapply.

Order of investment account withdrawals and transfers

Thepolicyownermustchooseoneofthreewithdrawalorderoptionsatissue(ontheapplication).Onceanorderhasbeenchosen,itcannotbechanged.Theabilitytochoosewherewithdrawalsaremadewillallowthepolicyownertoconcentrateinvestmentsinhis/herpreferredinvestmentoption.Ifthemainfocuslieswithequitybasedinvestmentaccountsduetopotentialforhigherratesofreturninagivenperiod,thepolicyownermaywanttoplaceenoughmoneyintoGIAstocoverinsurancecostsandselectthealternatewithdrawalorderoption.Thiscouldleavepolicyfundsinequity-basedindexandmanagedaccountstogrowundisturbedbymonthlycostofinsuranceuntilallGIAshavebeenexhausted.Iftheclient’spreferenceistokeepinvestmentsinGIAsuntoucheduntilrequiredtopayforthecostofinsurance,thestandardordermaybetheanswer.

Theproportionalorderallowstheclienttomorecloselykeeptheinvestmentmixbetweenaccountsconstantbytakingaportionfromeachaccountonwithdrawal.

Note:unlessselectedotherwise,theproportionalorderisthedefault.Thewithdrawalordercannotbechangedafterpolicyissue.

2 5 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

Standard Alternate Proportional (default)

DIA DIA DIA

FPXIncomeIndex GIA1-,3-,5-,10-&20-year(closesttomaturity)

ProportionalfromGIA1-,3-,5-,10-&20-year,fromindexaccountsandfrommanagedaccounts–basedonaccountvalueineachattimeofwithdrawal

FPXBalancedIndex FPXIncomeIndex

FPXGrowthIndex FPXBalancedIndex

CanadianEquityIndex FPXGrowthIndex

AmericanEquityIndex CanadianEquityIndex

ForeignEquityIndex AmericanEquityIndex

EuropeanEquityIndex ForeignEquityIndex

PacificEquityIndex EuropeanEquityIndex

JapaneseEquityIndex PacificEquityIndex

AmericanTechnologyIndex JapaneseEquityIndex

CanadianBondIndex AmericanTechnologyIndex

Managedaccounts–proportionalbasedonaccountvalue

CanadianBondIndex

GIA1-,3-,5-,10-&20-year(Closesttomaturity)

Managedaccounts–proportionalbasedonaccountvalue

Surrender charges

AsurrenderchargeforaparticularbasicinsurancebenefitunderaSunUniversalLifepolicywillcontinuetoapplyuntiltheearlierofthe10thanniversaryofthatbasicinsurancebenefit,whetherornotthatbasicinsurancebenefitremainsineffect,andtheterminationofthepolicy.

Thesurrenderchargeisamultipleofthebasicinsurancebenefit’sinsurancefactorandcanneverexceedthepolicyfundvalueavailable.Thesurrenderchargemultiplesforeachpolicyyearareillustratedinthechartbelow.

Number of years in-force

Surrender charge multiple

SunUniversalLife SunUniversalLife Max

1 1 2

2 2 4

3 3 4

4 3 4

5 3 4

6-8 3 3

9 2 2

10 1 1

11+ 0 0

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 2 6

ThefollowingexampleshowstheCSVofSunUniversalLife,iftheinsurancefactoris$200.

TheexampleassumestherearenoMVAsorpolicyloans.

Policy year Policy fund value - Surrender charge = CSV

1 100 200 0

2 400 400 0

3 900 600 300

4 1,500 600 900

5 2,200 600 1,600

6 3,400 600 2,800

7 4,100 600 3,500

8 5,500 600 4,900

9 7,100 400 6,700

10 9,100 200 8,900

11 12,200 0 12,200

DuringthefirstpolicyyearthesurrenderchargemultiplewillalwaysbeoneforSunUniversalLifeandtwofor SunUniversalLife Max.Onadateotherthanapolicyanniversary,thesurrenderchargemultiplewillbeapro-ratavaluebasedonthenumberofwholemonthsin-forcebetweenpolicyanniversaries.Thisinterpolationwillapplybetweenthefirstand10thpolicyyears.Forexample,iftheclientsurrendersthepolicyatpolicyyearnineplussixmonths,thesurrenderchargeintheaboveexamplewouldbe$300.

Exceptforincreasesresultingfromanindexedinsuranceamountoptionorfortax-exemptmaintenancepurposes,eachincreaseininsuranceamounthasitsownassociatedsurrendercharge.

Policy loans

PolicyloansfromthepolicyfundvaluearepermittedonaSunULpolicyafterthefirstpolicyyear.Theminimumamountthatcanbeborrowedis$500andthemaximumisthe(policyfundvalue,lessanyMVAsandsurrendercharges)multipliedby(1-policyloaninterestrate)minusexistingpolicyloanswithinterest.

Theamounttobeborrowedwillbetransferredtotheactivityaccount,followinganyapplicableMVAandwillbecreditedwiththeactivityaccountinterestrate.Wesettheinterestrateandmaychangeitatanytime.Thecurrentloaninterestratewillbetheprevailingactivityaccountinterestrateplus2%.

Uponthedeathoftheinsuredperson,thedeathbenefitwillbereducedbyanyoutstandingpolicyloansplusinterest.

Apolicyloanisconsideredadisposition.Anyamountreceivedinexcessofthepolicy’sadjustedcostbasiswillbetaxableincometothepolicyowner.

Lapse

ASunULpolicywilllapseif,onamonthlyanniversarydate,thepolicyfundvaluelessoutstandingpolicyloansiszeroornegative.

Whenapolicyisinalapsesituation,wewillsendthepolicyownerashortagenoticetopaytheoutstandingcostofinsurancewithinagraceperiodof31days.

2 7 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

Transaction fees

Thepolicyownerisallowedtwofreetransactionsperyear(thefirsttwo),otherwisethefollowingchargesapplyandmustbepaidupfront.Themaximumfeechargedatanytimeis$100pertransaction.

$50perpolicyforthefollowingtransactions:• removingandaddinganinsuredperson(multiplelivespolicy)• changeindeathbenefitoption• changeinCOI(YRTtolevel)• increaseininsuranceamount• addterminsurancebenefit(5-,10-or20-yearrenewableterm)• investmentaccountmixchange• policyloanorcashwithdrawal• decreaseinamountofinsurance• removinganinsuredperson• changesinpolicyfundallocationsondeath• changeinspecifiedpercentageonearlydeathbenefit• deleteabenefit• changetonon-smokerrates

However,thefollowingchangesareexcludedfromthetwofreetransactions,andfeesarerequiredtobepaidup-front:

• $25chargeforanyreturnedPACpayments• $50toreissueacontract• $50foraccountinghistoryfor2yearsandover

Wemaychargeafeeforpolicytransactionsorpolicychangesthatarenotlisted.

Accessing the policy fund when disabled, ill or injured

Thepolicyownermaymakeonewithdrawalfromthepolicyfundeachtimeaninsuredpersonbecomesdisabledasdescribedbelow.Eachdisabilitymustcontinuefor60consecutivedays.Disabilityforthisbenefitmeansoccupationallydisabledorcriticallydisabled(duetoillness,duetodeterioratedmentalabilityandterminalillness).Pleaseseethepolicycontractfordefinitionsofoccupationallydisabledandcriticallydisabled.

Accordingtotaxrulesineffectasofthepolicydate,thepolicyownermaymakethiswithdrawalwithoutincurringataxabledisposition.Thetaxrulesmaychangeatanytime,withoutnotice.Thetaxrulesineffectonthedateofthewithdrawalwillapply.

Withdrawing funds under this benefit

Whenaninsuredpersonqualifiesunderthisbenefitthepolicyownermaymakeasinglewithdrawalfromthepolicyfund.

Themaximumwithdrawalamountfromthepolicyfundis:

• thebalanceintheactivityaccount• plusthetotaloftheinvestmentaccountsincludingaccumulatedinterest

uptothedateofthewithdrawal• minusanysurrenderchargethatmayapplyonthedateofthewithdrawal• minusanyloanagainstthepolicyfund,includinginterest• minusanymarketvalueadjustmentthatmayapplytoGIAs• minusanamountequaltothecostofinsuranceforthenext12months• minusaclaimassessmentfee.

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 2 8

Ifthisamountislessthan$500,thepolicyownermaynotmakeawithdrawal.Wewillcreditinterestuptothedateofwithdrawal.

Unlessthepolicyownertellsusotherwise,wewillwithdrawmoneyfromtheactivityaccountandthenifnecessaryaccordingtothewithdrawalorder.WhenmoneyiswithdrawnfromaGIAitwillbetakenfromthelayerclosesttomaturity.

Thepolicyownermaynotmakeanywithdrawalunderthisprovisionif:

• weratedtheinsuredpersonasasubstandardriskformedicalreasonsandtheycontinuetoberatedonthedatetheybecomedisabled,or

• thispolicycameintoeffectastheresultofaconversionfromanotherlifeinsurancepolicywhiletheinsuredpersonwasdisabled.

Thepolicyownermustpayaclaimassessmentfeeeachtimeaclaimissubmittedtoaccessthepolicyfundwhendisabledandanyotherfeeassociatedwithsupplyingproofofthedisability.

Withdrawalswillreducethetotaldeathbenefitbytheamountofthewithdrawal.

Thepolicyownerdoes not qualifyforthisbenefitifthedisabilityisdirectlyorindirectlycausedbyorassociatedwiththeinsuredpersoncommittingorattemptingtocommitacriminaloffence.

Making a claim for this benefit

Beforeweapprovetheclaim,theageoftheinsuredpersonmustbeverified.Iftheinsuredpersonisdisabledwhenthepolicyownermakesaclaimforthisbenefit,wemustreceiveproofoftheirdisabilityafteritcontinuedformorethan60consecutivedays.

Iftheinsuredpersonisnolongerdisabledwhenthepolicyownermakesaclaimforthisbenefit,wemustreceiveproof:

• thatthedisabilitycontinuedformorethan60consecutivedays,and• ofthedisabilitywithin1yearofthedatetheinsuredpersonisnolongerdisabled.

Living benefits

ASunUniversalLifepolicyownermaybeeligibleforthelivingbenefitsprogram.Atourdiscretion,weallowpolicyownersto“draw”ontheirinsuranceamount,providedtheinsuredpersonisterminallyillandstillliving.

Thelivingbenefitsprogramwasdevelopedasahumaneresponsetoconsumerneedsandisofferedonacompassionateanddiscretionarybasis.Theprogramprovidesforamaximumof50%oftheinsuranceamounttobepaidtoamaximumof$100,000.

Anyclaimissubjecttoourrulesonthelivingbenefitsprogramatthetimetherequestismade.

How the living benefits program works

Livingbenefitsprovidesaone-timebenefitofupto50%(maximum$100,000)ofthebasicinsurancebenefitwheretheinsuredpersonisnotexpectedtolivebeyond2years.Thebenefitisanon-commercialloan.

Beforecalculatingtheamountofthebenefitavailableunderapolicy,anyoutstandingpolicyloanswillbedeductedfromthebasicinsuranceamount.

Thebenefitwillbechargedinterestatacomparableratetointerestpaidonadeathclaimsettlement.

Toprotectallthoseconcerned,agreementtothelivingbenefitspaymenthastobeobtainedfromallprimarybeneficiaries.Aswell,thosepartiesandtheinsuredpersonwillberequiredtoeffectaloanagreementwhichwillcontainanassignmentoftheinsuredperson’sinterestinthepolicyinfavourofthecompanytotheextentoftheloanplusaccumulatinginterest.

2 9 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

The living benefits program may apply when:

• theinsuredpersonisterminallyillandnotexpectedtolivebeyond2years;and• alifeplanpolicycontainsadisabilitywaiverofpremiumbenefitprovision.

Ultimately,thefinalassessmentliesinthehandsofourmedicalofficeastowhetherornotaninsuredperson’sprognosismeetstherequirementsoftheprogram.

Conversions

• Anyconvertibletermplanorbenefitcanbeconverted,withoutevidenceofinsurability,toaSunULpolicy(excepttoanindexedinsuranceamountdeathbenefitoption).

• IfanytermplanbeingconvertedtoSunULhasaconversioncredit,thecreditamountwillbetransferredintoactivityaccount.

• NopermanentplanisconvertibletoaSunULpolicy.• TheinsuranceamountunderayearlyrenewabletermCOIcanbeconvertedpriortothepolicy

anniversarynearestage81tothelevelCOIoption.However,thelevelCOIoptioncannotbeconvertedtotheyearlyrenewabletermCOIoption.

ADDITIONAL BENEFITS

SeveralattractiveadditionalbenefitsareavailableonaSunULpolicy:

• Totaldisabilitybenefit(TDB)–protectionorsavings• Terminsurancebenefitfortheinsuredandanyadditionalperson• Accidentaldeathbenefit(ADB)• Guaranteedinsurabilitybenefit(GIB)• ExecutiveGIB• Coveragedeathbenefit(CDB)onjointlasttodie–protectionorsavings• Ownerdeathbenefit–protectionorsavings• Ownerdisabilitybenefit–protectionorsavings

Total disability benefit – protection or savings

AchoicebetweentwoformsofTDBisavailableonaSunULpolicy.Inbothcases,theissueagesare0through55,andthepremiumpaymentisbasedoneach$100ofbenefit.Theinsuredpersonisalsoabletochoosethebenefitperiod.

WithTDB(protection),themonthlycostofinsuranceforthebasicinsurancebenefitandadditionalbenefitsoftheinsuredpersonwillbewaivediftheybecomedisabled.

WithTDB(savings),theinsuredpersonchoosesasavingsamountwhichcanvarybetween0and2timestheinsurancefactorofthepolicy.Uponthedisabilityoftheinsuredperson,thesavingsamountwillbepaidintotheactivityaccountonamonthlybasis.Thecostofinsuranceisthendeductedfromthepolicyfund.Note:Sincethesavingsamountislevel,itmayeventuallybeinsufficienttocoverthemonthlycostofinsuranceiftheyearlyrenewabletermCOIoptionisused,soexercisecautionwhenchoosingit.

Definition of total disability

Theinsuredpersonmustbecompletelyunable,duringthefirsttwoyears,tocarryontheirownoccupationand,thereafter,tocarryonanyoccupation.Totaldisabilitymustbecontinuous.

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 3 0

Exclusions

Totaldisability:

i) continuesforlessthansixmonths,ii) fromself-inflictedinjuries,oriii) fromcommittingacriminaloffence.

Pleaseseepolicycontractforotherexclusions.

Making a claim

Noticemustbegiventous:

i) duringtotaldisability,andii) beforetheinsuredperson’s61stbirthday.

Proof

Proofmustbegiventous:

i) withinsixmonthsofnotice,andii) then,fromtimetotimeasrequiredbyus.

Limitations

Paymentsunderthisbenefitwillnotbemadeforanyperiodearlierthanoneyearbeforeanoticeoftotaldisabilityisreceivedbyus.Thetotalamountpaidbyusundertotaldisability(savings),ownerdeath(savings),ownerdisability(savings),andcoveragedeath(savings)benefitsforthispolicymustnotexceedanamountequaltofivetimesthesumoftheinsurancefactorsforthepolicy.

Term insurance benefits for the insured and any additional persons

Five-,10-and20-yearrenewableandconvertibleterminsurancebenefitsprovideadditionalprotectionthattheinsuredpersonmayrequireonatemporarybasis.Eachinsuredpersonwithabasicinsurancebenefitcanincludeaterminsurancebenefitonanotherpersonsuchasaspouse,familymemberorbusinesspartner.Thisbenefitcanalsobepurchasedafterpolicyissueonanattainedagebasis,withtherequiredevidenceofinsurability.Thisbenefitisguaranteedrenewableattheendofeachtermperiod,withoutevidenceofinsurability,tothepolicyanniversarynearestage80.Renewalcostsarebasedontheinsuredperson’sattainedageatthestartofthenextrenewalperiod.Insuredpersonsunderasingle,multi-life,jointfirst-orlast-to-diebasicinsurancebenefitcouldelectthisbenefitonasingle-lifebasisonly.Thisbenefitcanbeconvertedpriortothepolicyanniversarynearesttheinsuredperson’s70thbirthdaytoanadditionalULcoverageoranyeligiblelifeplanofferedbyus.

Accidental death benefit (ADB)

TheADBoptionpaysoutanadditionaldeathbenefittothebeneficiaryiftheinsuredperson’sdeathwasduetoanaccident.

Thisbenefitisavailableatissueages0through65andthebenefitceasesonthepolicyanniversarynearesttheinsuredperson’s70thbirthday.

TheminimumADBinsuranceamountis$10,000.ThemaximumADBinsuranceamountisthepolicyfaceamountandissubjecttothefollowingissueandparticipationlimits:

3 1 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

Issueage Maximum Participationlimit**

0to14* $100,000 $150,000

15to24 $250,000 $400,000

25to65 $500,000 $750,000

* ADB is not payable if death occurs before age 5. ** Maximum of all ADB insurance amounts with us.

Guaranteed insurability benefit (GIB)

GIBallowsthepolicyownertopurchaseadditionalinsuranceprotection,onanattainedagebasis,withoutprovidinganyevidenceofinsurability.SunULofferstwoformsofthisbenefit—GIBandexecutiveGIB.AdditionalSunULcoveragepurchasedviaaGIBelectionmustbepurchasedwithoneoftwodeathbenefitoptions—thelevelinsuranceamountortheinsuranceamountplusfundoption.Thepolicyownercanalsopurchaseanyothereligiblelifeinsuranceproductofferedbyus,atthetimeofelection.

GIB

WithGIB,thepolicyownerhastheoptiontopurchaseadditionalcoverageeverythreeyears,oronfamilydates(marriage,birthoradoptionofachild).Thisbenefitisavailableatissueage0through50,andtheamountpurchasedmustbeatleast$25,000.ThemaximumamountofGIBcoverageisthelesserof:

i) theoriginalinsuranceamountandii) $250,000.

AmaximumofeightelectionsarepermittedandthemaximumwillbereducedbyanyGIBamountonotherpoliciesissuedbyuscoveringthedesignatedinsuredperson.

ThefirstGIBelectionisavailablewhenthedesignatedinsuredpersonreachesage24.Thebenefitceasesonthepolicyanniversarynearestage55.

Executive GIB

ExecutiveGIBisavailableonSunULcoveragewheretheminimuminsuranceamountis$250,000.AlthoughtheexecutiveGIBbenefitissimilartoGIB,thedetailsarequitedifferent.Atissue,theinsuredpersoncanchoosehowmanyelectionsarerequired,exactlywhentheywillberequired,andtheinsuranceamountofeachelection.

ExecutiveGIBisavailableatissueages25through60;thelatestelectiondateavailableisthepolicyanniversarynearestage65.

TheminimuminsuranceamountforeachexecutiveGIBelectionis$250,000.ThelifetimemaximumofallGIBelectionsmustbethelesserof:

i) Fourtimestheoriginalinsuranceamount,andii) $4million.

Thereisamaximumoffiveelectionsavailableandthefirstelectionmustbeatleastthreeyearsfromthedateofissue.

Coverage death benefit (CDB) – protection or savings for joint last-to-die

TwoformsofCDBareavailableonaSunULpolicy.Thisbenefitensuresthatcoveragecontinuesforthesurvivinginsuredperson.Inbothcases,theissueagesare18through75andthepremiumpaymentisbasedoneach$100ofbenefit.Theinsuredpersonisabletochoosethebenefitperiod.Thisfeatureisonlyavailableonjointlast-to-diebasicinsurancebenefits.

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 3 2

WithCDB(protection),themonthlycostofinsurancewillbewaivedforthechosenbenefitperiod,uponthedeathoftheinsuredperson.

WithCDB(savings),theinsuredpersonchoosesasavingsamountwhichcanvarybetween0and2timestheinsurancefactorofthepolicy.Uponthedeathoftheinsuredperson,wepaythesavingsamounteachmonthintotheactivityaccountforthechosenbenefitperiod.Costofinsurancewillstillbedeductedmonthly.Note:Sincethesavingsamountislevel,itmayeventuallybeinsufficienttocoverthemonthlycostofinsuranceiftheyearlyrenewabletermCOIoptionisused,soexercisecautionwhenchoosingit.

Owner death benefit – protection or savings

TwoformsofownerdeathbenefitareavailableonaSunULpolicy.Thisbenefitisthesameastotaldisabilitybenefit,exceptthatthebenefitispaiduponthedeath(ratherthanthedisability)ofthepolicyowner.Bothownerdeathbenefit(protection)and(savings)areavailable.

Themaximumownerdeathbenefit(savings)thatisavailableisthegreaterof:

i) Twotimestheinsurancefactorandii) $1,500.

Owner disability benefit – protection or savings

TwoformsofownerdisabilitybenefitareavailableonaSunULpolicy.ThisbenefitisexactlythesameasTDB(protection)andTDB(savings),exceptthatitappliestothenamedpolicyowner(ratherthantheinsuredperson)andispaiduponthedisabilityofthepolicyowner.

Themaximumownerdisabilitybenefit(savings)thatisavailableisthegreaterof:

i) Twotimestheinsurancefactorandii) $1,500.

Definition of total disability

Theinsuredpersonmustbecompletelyunable,duringthefirsttwoyears,tocarryonwithownoccupationand,thereafter,tocarryonanyoccupation.Totaldisabilitymustbecontinuous.

Exclusions

Totaldisability:

i) continuesforlessthansixmonths,ii) fromself-inflictedinjuries,oriii) fromcommittingacriminaloffence.

Pleaseseepolicycontractforotherexclusions.

Making a claim

Noticemustbegiventous:

i) duringtotaldisability,andii) beforetheinsuredperson’s61stbirthday.

Proof

Proofmustbegiventous:

i) withinsixmonthsofnotice,andii) fromtimetotimeasrequiredbyus.

3 3 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

Limitations

Paymentsunderthisbenefitwillnotbemadeforanyperiodearlierthanoneyearbeforewereceiveanoticeoftotaldisability.Thetotalamountpaidbyusundertotaldisability(savings),ownerdeath(savings),ownerdisability(savings),andcoveragedeath(savings)benefitsforthispolicymustnotexceedanamountequaltofivetimesthesumoftheinsurancefactorsforthepolicy.

ADDITIONAL BENEFITS SUMMARY

Benefit Issue age Age benefit terminates

Minimum insurance amount

Maximum insurance amount

Totaldisabilitybenefit(protection)or(savings)

0to55 Ontheinsured’sperson’s60thbirthdayorendofthebenefitperiod,ifearlier

Chosenbytheclient–minimum6years,maximumtotheinsuredperson’s100thbirthday

5-,10-&20-yearterminsurancebenefit

18to70–5-and10-yearterm18to60–20-yearterm

80 $100,000 Additionofarenewableandconvertibleterminsurancebenefitreducestheremainingamountoftotalinsuranceavailablefortheinsuredperson,subjecttoourretentionlimits

ADB 0to65 70 $10,000 Policyinsuranceamount,subjecttoourcurrentissueandparticipationlimits

GIB 0to50 55 $25,000 Maximumperelection: lesserof

i)theoriginalinsuranceamountand

ii)$250,000lifetimemaximumof8elections

ExecutiveGIB 25to60 65 $250,000 Nomaximumperelection.Lifetimemaximum:lesserofLifetime

i)4timestheoriginalinsuranceamountand

ii)$4millionlifetimemaximumof5elections

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 3 4

ADDITIONAL BENEFITS SUMMARY (continued)

Benefit Issue agePayment and coverage period

Benefit

Coveragedeathbenefit(protection)or(savings)

18to75 Thebenefitperiod Chosenbytheclient***–minimum6years,maximumtotheinsuredperson’s100thbirthday

Ownerdisabilitybenefit(protection)or(savings)*

18to55 Tothepolicyanniversarynearesttheowner’s60thbirthdayorendofthebenefitperiod,ifearlier

Chosenbytheclient–minimum6years,maximumtothepolicyanniversarynearestthepolicyowners70thbirthday

Ownerdeathbenefit(protection)or(savings)*

18to60** Tothepolicyanniversarynearesttheowner’s70thbirthdayorendofthebenefitperiod,ifearlier

Chosenbytheclient–minimum6years,maximumtothepolicyanniversarynearestthepolicyowners70thbirthday

* Maximum savings amount is 2 times the insurance factor or $1,500, whichever is greater.** 55 if the disability and death benefit options are both chosen.*** If both lives choose death benefit coverage, they must elect the same benefit period.

GENERAL DEFINITIONS

Inthisproductguide,referencesto“usandwe”meanSunLifeAssuranceCompanyofCanada,amemberoftheSunLifeFinancialgroupofcompanies.

Accounts based on performance of indices (index accounts)

Aninvestmentoptionwherethevalueintheaccountincreasesanddecreasesinproportiontothedailychangeinanexternalindex.Theseaccountsearndailyinterest.

Acknowledgement of variability

Thisisthesectionoftheillustrationthatadvisesthepolicyownerofthevariabilityofthevalues.

Additional amount with application

Thisisanamountthattheclienthaselectedto“dumpin”totheULpolicy,inadditiontotheplannedperiodicpayments.

American Equity Index Account

EarnsadailyrateofreturnbasedontheperformanceoftheS&P500TotalReturnIndex.

Asset allocation

Theprocessofdividinganinvestmentamongmajorassetcategoriessuchasbonds,stocksorcash.Thepurposeofassetallocationistoreduceriskbydiversifyingtheinvestment.

3 5 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

Assumed interest rate/marginal tax-rate assumption

Thisisarateselectedbytheadvisorandtheclient,andwillbethebasisformostoftheillustrationsinthepresentation.Themaximumratepermittedis10%fortheAssumedInterestRateand60%fortheMarginalTaxRate.

Canadian Bond Index Account

EarnsadailyreturnbasedontheperformanceoftheFTSETMXCanadaUniverseBondIndex.

Canadian Equity Index Account

EarnsadailyrateofreturnbasedontheperformanceoftheS&P/TSX60TotalReturnIndex.

Coverage death benefit/protection

Thisadditionalbenefitisavailableonjointlast-to-diepoliciesandensuresthatcoveragecontinuesforthesurvivinginsuredpersonbywaivingthecostofinsuranceforaspecifiedperiodoftime.

Coverage death benefit/savings

Thisadditionalbenefitisavailableonjointlast-to-diepoliciesandensuresthataspecifiedamountwillbe.

Death benefit option

Definesthedeathbenefitoptionforthepolicy,aswellastheoptionstomaintainthepolicy’stax-exemptstatus.

Equivalent single age

Theequivalentsingleageisasingleageassociatedwithajointfirst-to-dieorjointlast-to-diebasicinsurancebenefit.Itisdeterminedonthedatethebenefittakeseffect,usingtheage,smokingstatusandsexofeachoftheinsuredpersonsforthejointbenefit.

Executive guaranteed insurability benefit

Thisoptionguaranteesthepolicyownertherighttopurchaseadditionalinsuranceattimesandamountsspecifiedbythepolicyowner,regardlessofhealth.

Family dates

Afamilydateoccursuponthebirthofalivingchild,adoptionofachildormarriageoftheinsuredperson.

Foreign Equity Index Account

EarnsadailyreturnbasedontheperformanceoftheMorganStanleyCapitalInternationalEuropeAustralasiaandFarEast(MSCIEAFE)FreePriceIndex(excludingdividends).

Fund builder

Fundbuilderisaninsuranceamountplusfunddeathbenefittypethatisdesignedtomaximizeaclient’spolicyfundvalue.Thisdeathbenefitincorporatestheexemptmaintenancemethodofincreaseinsuranceamountandreducebelowinitial.Thisallowstheinsuranceamounttobereducedto$10,000andminimizesthecostofinsurance.Ayearlyrenewabletermcostofinsuranceisrequiredwiththisdeathbenefittype.Underthisoptionthepolicyfundvalueispaidondeath,inadditiontotheinsuranceamount.Theinsuranceamountwillbeadjustedupwardstokeeppolicyfundsexemptandwillthenbereducedwhenpossible.

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 3 6

Funding ratio

ThefundingratioisdeterminedbydividingAbyBwhere:

A=sumofthenetpaymentsandB=sumoftheinsurancefactors,

reducedbytheinsurancefactorsfortheadditionalbenefitsandterminsurancebenefits,multipliedbythenumberofcompletedyearsthattheirrespectivecoverageshavebeenineffect.

Thenetpaymentsconsistsofallpaymentsmadetodate,decreasedbycostsfortheadditionalbenefits,terminsurancebenefitsandanytransactionfees,MVAorwithdrawals.

Grace period

Agraceperiodof31daysisallowedforthepaymentofeachmonthlycostofinsurance,exceptthefirst.

Growth

Themanagerchoosesstocksfortheportfoliobasedonanassessmentofacompany’sabilitytogrowitsbusinessprofitably.Ifthemanagerisright,thecompany’sstockwillincreaseinpriceasthecompanyachievesbusinessandearningsgrowth.

Growth at a reasonable price (GARP)

Themanagerlooksforthestocksofgrowthcompaniesthattheycanbuyforareasonableprice.Thisisacombinationofvalueandgrowthinvesting.

Guaranteed insurability benefit (GIB)

Guaranteesthepolicyownertherighttopurchaseadditionalinsuranceoneachinsuredpersoneverythreeyearsoronfamilydates,regardlessofhealth.

Guaranteed interest account (GIA)

Aninvestmentoptionwheretheinterestandtherepaymentofprincipalareguaranteedafteracertainterminyearse.g.3-yearGIA.

Guaranteed level

LevelisoneofthetwoavailableCOIoptions.Withlevel,theCOIremainslevelandisguaranteedforthelifeofthecoverage.

Guaranteed yearly renewable term (YRT)

YRTisoneofthetwoCOIoptionsavailable.WithYRT,theCOIincreaseseachyearastheinsuredpersonages.Theratesareguaranteedforthelifeofthecoverage.

Historical average

Asectionoftheillustrationprovideshistoricalaverageratesfortheaccountsselectedintheillustration.

Indexed insurance amount

Thisisoneofthefouravailabledeathbenefitoptions.Thedeathbenefitisthegreateroftheindexedinsuranceamountandthepolicyfundvalue,lessallocatedoutstandingpolicyloanswithinterest.Thetotalinsuranceamountofthecoveragewillincreaseannuallyfromtheinitialinsuranceamount,byapredeterminedrate.

37 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

Insurance amount

Theamountstatedinthepolicythatispayableuponthedeathoftheinsuredperson.

Insurance amount plus fund

Thisisoneofthefouravailabledeathbenefitoptions.Upondeath,thepolicyfundvalueispaidinadditiontotheinsuranceamount.

Insurance discount

ThisistheCOIdiscountearnedfromthefundingratiocalculation.Thefundingratioisdescribedundertheinvestmentbonusprovision.

Insurance factor

Theinsurancefactorisequalto100%ofthelevelCOI,plusanymultiple-ratingschargedattheactualCOI(LevelorYRTasthecasemaybe).ThisdefinitionapplieseveniftheyearlyrenewabletermCOIoptionisselected.Theinsurancefactorisdeterminedatthepolicy’sissuedate.

Investment bonus

ForpoliciesissuedonorafterNovember18,2005,whenabonushasbeenchosen,thebonuspaysaguaranteedpercentagetothepolicyfundvaluebasedontheaveragemonthlyaccountvalueintheprevious12months.Theamountofthebonusandtheyearinwhichitstartsvariesbythetypeofpolicycoveragepurchasedandthenumberofyearsthecoverageisheld.ForpoliciesissuedpriortoNovember18,2005,thebonusispaid10yearsafterthepolicyeffectivedateandeveryfifthpolicyanniversarythereafter.

Investment options

Asectionoftheillustrationthatdemonstrateshistoricalandguaranteedratesforeachoftheinvestmentaccountsselectedintheillustrationaswellasanexplanationoftheserates.

Investment mix

ThecombinationofallinvestmentaccountsselectedbyaSunUniversalLifepolicyowner,includingtheactivityaccount,GIAs,accountsbasedontheperformanceofindicesandaccountsbasedontheperformanceofmanagedfunds.Themixisexpressedintermsofpercentagesthataremultiplesof5%.

Level insurance amount

Thisisoneofthefouravailabledeathbenefitoptions.Thetotaldeathbenefitwillbethegreaterof:

i) theinsuranceamount,andii) thepolicyfundvalue.

Lessallocatedoutstandingpolicyloanswithinterest.

Living benefits

Thisallowspolicyowners,atourdiscretion,to“draw”ontheirlifeinsuranceprovidedthattheinsuredpersonisterminallyillandstillliving.

Management fee

Themanagementfeeisdeductedfrominterestearnedontheindexaccountsoronthemanagedaccounts.Themanagementfeehelpscovertheexpensesrequiredbyustomanagetheuniversallifepolicyandrelatedinvestments.Accountmanagementfeesmaychange.

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 3 8

Market value adjustment (MVA)

AreductioninthevalueofpolicyfundswithdrawnfromaGIA,priortomaturity.Thisoccursonlyiftheprevailinginterestrate(atthetimeofwithdrawal)ishigherthanthatbeingpaidonanewGIAofthesameinitialterm.TheMVAappliestowithdrawals,policyloans,ortransfersfromaGIA,exceptontransfersrequiredtopayformonthlycostofinsuranceortomaintainthepolicy’stax-exemptstatus.

Minimum amount required with the application

Thisistheminimumpaymentthatwillberequiredfortheplan.Thisamountmaychangeovertime.Theminimumlumpsumrequirementis$250.TheminimumPACpaymentisthemonthlycostofinsuranceplusapplicableprovincialpremiumtax.

Monthly anniversary date

Thedayofthemonththepolicywentintoeffect.Forexample,apolicydateofAugust2willhaveamonthlyanniversaryontheseconddayofeachmonth.

Monthly activity account minimum

Themonthlyactivityaccountminimumiscalculatedbyaddingthemonthlycostofinsurance(mortalitychargesplusthecostofanyadditionalbenefits).Theactivityaccountminimumisonlyusedforreinstatements.

Multiple lives coverage

Currently,uptoninelivesinafamilyorbusinesscanbecoveredunderonepolicy.

Net cost of insurance

TheCOIlesstheinsurancediscount.

Net cost of pure insurance (NCPI)

Anannualcostofinsurance,prescribedbyCanadaRevenueAgency,thatisusedinthecalculationofapolicy’sadjustedcostbasis.

Net payment

Paymentsnetofapplicableprovincialpremiumtax.

Net insurance amount at risk

Thedifferencebetweenacoverage’sbasicinsuranceamountandthepolicyfundvalue.

Owner death benefit/protection

Thisoptionensuresthatthepolicy’scostofinsuranceiswaivedforaspecifiedperiodoftimeshouldthepolicyownerdie.

Owner death benefit/savings

Thisoptionensuresthataspecifiedamountbepaidintotheactivityaccountonamonthlybasisshouldthepolicyownerdie.

Owner disability benefit/protection

Thisoptionensuresthatthepolicy’scostofinsuranceiswaivedforaspecifiedperiodoftime,shouldthepolicyownerbecometotallydisabled.

3 9 A D V I S O R G U I D E - S u n U n i v e r s a l L i f e

Owner disability benefit/savings

Thisoptionensuresthataspecifiedamountbepaidintotheactivityaccountonamonthlybasisshouldthepolicyownerbecometotallydisabled.

Payments/withdrawals column

Acolumnontheillustrationthatcontainstheselectedplannedpaymentsonanannualbasis.Thewithdrawalsectionillustratesselectedplannedwithdrawalsonanannualbasis.

Planned periodic payment

Theamountchosenbythepolicyownertopayintothepolicyatspecifiedtimeperiods.

Policy fund value

Thetotalvalueofallinvestmentaccounts.

Policy loans

Ameansofaccessingthepolicyfund.Aloanuptothepolicy’sadjustedcostbasiscanbereceivedwithouttaxation.Anyamountinexcessoftheadjustedcostbasisistaxableincometothepolicyowner.Theamountofanyoutstandingpolicyloansplusinterestwillreducethedeathbenefit.Theamountofthepolicyloanismovedintotheactivityaccount.Theactivityaccountwillcontinuetoearninterestontheamount,andtheinterestyoupayonthepolicyloanwillbe2%higherthanwhatyouearnedintheactivityaccount.Nopolicyloansareallowedinthefirstpolicyyear.

Policy taxation summary

ThissectionoftheillustrationoutlinesthetaxableinterestgeneratedonaSunUniversalLifepolicywheninterestisearnedbytheserviceaccountandwhenthereisapartialwithdrawalorafullsurrenderofthepolicy’sfundvalue.

Reinstatement

Wewillputthepolicybackinforcewithintwoyearsoftermination,subjecttoinsurability,ifthepolicyownerrepaysalltheoutstandingmonthlycostofinsurancewithinterest.

Sensitivity analysis

Apageintheillustrationthatshowscashsurrendervalue(CSV)anddeathbenefitsatthreedifferentinterestratessothatthepolicyownerfullyunderstandstheeffectofillustratedratesandlapsesensitivity.

Service account

Allnon-exemptfundsaretransferredintotheserviceaccount,andtheinterestearnedisreportedastaxableinvestmentincometothepolicyowner.ServiceaccountfundscanbeinvestedinanyoneoftheavailableGIAs,indexaccounts,managedaccountsortheDIA.

Service account balance column

Iftheserviceaccountoptionisselected,thebalanceattheendofeachpolicyyearwillappearinthiscolumn.

Surrender charges

Achargethatappliestothepolicyfundvalueifthepolicyiscancelledinthefirst10yearsofcoverage.

A D V I S O R G U I D E - S u n U n i v e r s a l L i f e 4 0

Tax on service account

Ifaserviceaccountexists,anannualtaxwillbepayableontheinterestearnedinthisaccount.

Tax on surrender

Thisisthetaxpayableonfullsurrenderofthepolicyfundvalue.

Tax on withdrawals

Thiscolumnillustratesanytaxpayableasaresultofthewithdrawals.Thetaxisbasedonthepolicyowner’sassumedmarginaltaxrate.

Term insurance benefit

Thisbenefitallowstheinsuredpersontopurchase,priortoage70forthe5-and10-yearandage60forthe20-yearterm,additionalprotectionuntilage80.Thebenefitisguaranteedtoberenewableattheendofeachtermperiod,withoutevidenceofinsurability.Thisbenefitcanbeconvertedpriortothepolicyanniversarynearesttheinsuredperson’s70thbirthdaytoanadditionalULcoverageoranyeligiblelifeplanofferedbyus.

Total disability benefit/protection (TDB protection)

Thisensuresthatthemonthlycostofinsurancefortheinsurancebewaivedforaspecifiedperiodoftime,shouldtheinsuredpersonbecometotallydisabled.

Total disability benefit/savings (TDB savings)

Thisensuresthataspecifiedamountwillbepaidtotheactivityaccountonamonthlybasisshouldtheinsuredpersonbecometotallydisabled.

Value

Themanagerchoosesstocksthatareinexpensivebasedonananalysisofthecompany’scurrentstrengthsandfutureprospects.Ifthemanagerisright,thecompany’sstockwillincreaseinpriceasothersinthemarketrecognizethetruevalueofthestock.

Withdrawals

Afterthefirstpolicyyear,themaximumamountavailableforwithdrawalisequaltotheCSVofthepolicy.

Why choose Sun Life Financial?SunLifeFinancialisaleadinginternationalfinancial

servicesorganization.InCanada,westartedselling

lifeinsurancein1871.Sincethen,ourcommitmentto

helpingpeopleachievelifetimefinancialsecurity

throughmarket-leadingproducts,expertadvice

andinnovativesolutionshasmadeusahousehold

name–anamethatpeopletrust.

Fortheseventhstraightyear,wewerevotedbyCanadiansasthe“MostTrustedLifeInsuranceCompany”in

theReader’sDigest2016TrustedBrandsSurvey.Inthissurvey,peoplewereaskedtoconsiderwhetherthe

brandspossessedseveralattributesincludingsuperiorquality,excellentvalue,anunderstandingofits

customers’needsandwhethertheywouldrecommendthebrandtoothers.We’rehonouredbythisawardand

yourcontinuedtrustinus.

6

Questions? We’re here to help.

Talk to your advisor about Sun Life Financial today!

For more information and resources visit www.sunlife.ca | Call 1 877 SUN-LIFE / 1 877 786 5433

We’re dedicated to helping you achieve lifetime financial security.

TMTrustedBrandisaregisteredtrademarkofReader’sDigestAssociationCanadaULC.

Life’s brighter under the sunSunLifeAssuranceCompanyofCanadaisamemberoftheSunLifeFinancialgroupofcompanies.©SunLifeAssuranceCompanyofCanada,2016.810-3648-Digital-05-16