Sun Life has introduced a new Guaranteed Investment Fund (GIF). The product is divided into three lines, namely Sun GIF Solutions, Sun Lifetime Advantage GIF, and the Sun Protect GIF.
Sun GIF Solutions consists of three different series, namely the Investment Series, the Income Series, and the Estate Series. In the first two series the insurer is offering a 75% death benefit guarantee, while the Estate Series comes with a 100% death benefit guarantee as well as automatic annual resets based on market performance until age 80. All three of the Sun GIF Solutions series come with a 75% maturity guarantee, and a contract maturity date of age 100. Investors have about 60 funds to choose from in this product. The management expense ratio (MER) for the Investment Series ranges between 1.90% and 3.45%, between 2.07% and 3.6% for the Estate Series, while the MER for the Income Series is 2.75%.
The Sun Lifetime Advantage GIF is a guaranteed lifetime withdrawal benefit product that allows investors to hold up to 70% of their investments in equities and provides a choice of about 35 funds. This product offers a 75% maturity guarantee and a 75% death benefit guarantee, and MERs are between 2.80% and 3.99%. A calculator on the Sun Life web site allows clients to determine the minimum annual income rate and dollar amount they would receive for both single and joint-life contracts.
Finally, the Sun Protect GIF is aimed at those who wish to invest in the market but also protect their savings and maximize their estates. It offers a maturity guarantee of up to 100% for deposits made before the first anniversary date or in the year after a reset or renewal, and 75% maturity guarantee thereafter. On a renewal with less than 15 years left to contract maturity, Sun Life says the maturity guarantee will be reduced to 75%. As for the death benefit, the Sun Protect GIF offers a 100% guarantee. Clients may choose from about 15 funds, and MERs range from 2.45% to 4.25%.