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  • Writer's pictureAhsan Malyk

Pros and Cons of Sun Life Insurance

Sun Life exclusively provides group coverage through employers in the US. In its native Canada, the corporation sells individual life insurance, but not in the United States.


As a component of your employee benefits package, your company is required to provide coverage via Sun Life. You should be aware of Sun Life's financial stability and low customer complaint rate if your firm offers life insurance through them.


Pros


  • Best financial health rating: Sun Life has an AM Best financial strength grade of A+ (Superior), the highest possible rating. This indicates that the business will be better able to fulfil its ongoing insurance duties, including paying claims.

  • Customers rarely complain: Over the previous three years, the company received fewer complaints than anticipated. 2 Covers big businesses:

  • Covers large businesses: For businesses with two to more than 25,000 employees, coverage is offered.

  • Moveable and adaptable term insurance: Employees can take their coverage with them when they quit their employers or make it permanent if they no longer qualify for benefits. The insured is obligated to pay the premiums after quitting their work.


Cons


  • Group Insurance Only: Only for group insurance can you obtain coverage in the United States if your company provides it and you are qualified because individual insurance is not offered there.

  • Online product information is scarce: There is little information on group life insurance, though there may be more via your employer's benefits site.


Complaint Index


By data from the National Association of Insurance Commissioners' complaint index, Sun Life has received fewer complaints than expected for a life insurer of its size (NAIC).


According to the NAIC, an insurance company's complaint volume is compared to its size. An insurer's complaints would be in line with anticipated, given its market share if its complaint index was 1.00. A complaint index above 1.00 indicates that an insurer receives more complaints than expected, whereas a complaint index under 1.00 indicates the opposite.


Our analysis of the most recent three years of data on the complaint index showed that Sun Life had an average index of roughly 0.69, which is good because it indicates that Sun Life experienced fewer complaints than would be predicted given its size.


Sun Life rated in the top half of the 88 other life insurers having complaint index data that we examined.


Independent Ratings


According to AM Best, Sun Life also receives top rankings for its financial stability. If AM Best is unfamiliar to you, it is a reputable credit rating organization that evaluates the creditworthiness of insurers all over the world. After a review, insurance companies are given Financial Strength Ratings (FSRs), which can range from D to A++.


The rating of A+ (Superior) indicates that Sun Life Financial Inc. and its affiliates, who write group life insurance in the United States, have a superior capacity to fulfil their ongoing insurance obligations.


Only 12% of the insurers we evaluated whose AM Best ratings received the maximum rating of A++, while 42% received an A+ (Superior) FSR (Superior).


Policies Available


Sun Life exclusively provides group life insurance coverage in the US. They need to make it obvious what kinds of life insurance they provide on their product pages. But according to their support page, there is also a permanent life insurance option in addition to term life. Within group life insurance, this is unusual.


There is a potential that permanent insurance is only accessible during term life conversion. If your workplace provides Sun Life benefits, get in touch with Sun Life or the benefits division of your business to learn more about your possibilities.


Term Life Insurance


If the insured individual passes away while the policy is still in force, term life insurance pays a death benefit to the beneficiary. In the case of group insurance, the word typically refers to the time that a worker is employed by an employer, is eligible for the employee benefit, and chooses to take advantage of it.


The portable coverage exception to this rule allows the employee to choose to keep the policy after leaving the employer as long as they continue to pay the payments. The policy may then be kept for the entire duration.


Whole Life Insurance


As long as the premiums are paid, whole life insurance protects the insured throughout the rest of their natural lives. Whole life insurance frequently has level premiums and a guaranteed death payout. It also includes a monetary value component that the insured can draw from or use.


Universal Life Insurance


Another type of permanent life insurance that covers the insured for the duration of their life is universal life. The premiums and the amount of the death benefit are flexible and scalable. After the policy goes into effect, they are amendable. The cash value portion of universal life also frequently earns interest.


Available Riders


There needs to be more information on Sun Life's life insurance products on their website. Although it does, the firm needs to specify which riders are available to group life insurance customers in the United States.


To learn more about your options, speak with your benefits department or Sun Life. You can cover your spouse or child with common riders, receive your death benefit if you're terminally ill, and stop paying premiums while you're handicapped.


Consumer Assistance


For different purposes, Sun Life offers a variety of customer support phone numbers and email addresses. For information on employee benefits, such as life insurance, call (800) 247-6875. Alternatively, you can reach general customer support at (800) SUN-LIFE (786-5433).


Alternatively, you can send an email to USWeb General Information@sunlife.com. The absence of customer service business hours makes it difficult to know when agents are on duty.


How does Sun Life evaluate Life Insurance Providers?


To rank more than 90 insurers across five broad categories—financial stability, customer satisfaction, product and feature variety, the overall buying experience, and cost—we developed a thorough ranking methodology based on consumer priorities and life insurance company fundamentals.


To accomplish this, we gathered over 5,000 data points and graded each business using 55 measures. Metrics were categorised by category to examine how insurers did in each, and category scores were weighted to see how businesses performed as a whole.


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