Sun Life Assurance Co. of Canada today announced a leveraged loan program to be offered to clients who have, or wish to enter into, a SunWise Individual Variable Annuity Contract. The loans will be available through B2B Trust.

The SunWise seg fund product combines the potential for growth offered by mutual funds with guarantees to protect the value of investments.

Sun Life says leveraged loans can provide many benefits to clients, including maximizing the client’s capital investment, while at the same time, offering preferential tax treatment.

“Used responsibly, borrowing may be a sound strategy for achieving investment goals. Through this leveraged loan program, investors pay low, tax- deductible interest rates to purchase SunWise segregated funds, which offer growth, flexibility, choice and capital protection,” said Claudio Bufi, Director Investment Products, Retail Customer Marketing, Sun Life Financial.

Two types of leveraged loans will be available through Sun Life Financial’s arrangement with B2B Trust, including a “2 for 1 Investment Loan,” and a “100% Investment Loan,” both of which offer highly competitive rates. The term of the loan is determined by the client and can range from one to 20 years.

The “2 for 1 Investment Loan” allows clients to borrow up to twice the premium amount they have already deposited in their SunWise seg fund policies. For example, a client who has $5,000 invested in SunWise may be able to borrow an additional $10,000, upon approval, bringing their total SunWise investment to $15,000.

The “100% Investment Loan” allows clients to borrow their entire initial investment in SunWise segregated funds and clients can amortize the 100% Investment Loan for up to 20 years. Investors are advised to discuss with an advisor how the leveraged loan program can appropriately be used as part of their investment strategy.

The SunWise seg funds are built on a corporate class structure.