Sun Life has lowered interest rates credited to some insurance policies.
The insurer highlighted the changes, which took effect this month, in a recent note to agents. The rates were changed as a result of a decrease in long-term investments and short-term interest rates.
Illustrations with the new rates will be available to agents on April 26, while in-force policies will get new illustrations on April 12.
Participating non-withdrawable premium fund rates are now 3.5%, down from 4%. Non-participating non-withdrawable premium fund rates have been lowered to 2.5% from 3.25%. Participating and non-participating withdrawable premium fund, universal life fund, universal life withdrawable premium fund and premium deposit fund or overflow fund rates on Flexiplus and Met Universal Life Plus fell to 1.75% from 4%. Meanwhile, the universal life portfolio rate on Clarica and Mutual products is now 5%, down from 5.5%.
As well, rates credited to dividends on deposits have decreased. Sun Par’s Canadian Business series rates (including 2010, 2017 and 2021) are 3.25%, down from 3.5%. Sun Par’s RRSP policy rates fell to 4% from 4.25%. Clarical, Mutual and Prudential products have been lowered to 3.5% from 4%, while Met products fell to 1.5% from 3.75%.
Sun Life is encouraging agents to inform clients of the changes and review portfolios to make sure policies still meet their needs.