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- Sun Life whole life insurance includes five plans: three participating, one non-participating, and one guaranteed issue option
- Participating plans like Sun Par Protector II, Sun Par Accumulator II, and Sun Par Accelerator offer lifetime coverage and a cash value component. Cash value starts building after five years for Protector II, and after one year for Accumulator II and Accelerator
- Sun Par Protector II and Sun Par Accumulator II offer four dividend options: paid-up additions, premium reduction, cash payment, and interest-bearing dividends on deposit
- SunSpectrum Permanent Life II is a non‑participating plan with guaranteed cash values and coverage up to $25,000,000
- Sun Life Go Guaranteed Life offers $5,000-$25,000 of guaranteed issue coverage (no medical questions). Non‑accidental deaths are typically limited in the first 2 policy years
Sun Life whole life insurance is one of Canada’s most trusted permanent coverage options. Founded in 1865, Sun Life has grown into a top-rated global insurer. With over 160 years of experience, Sun Life offers Canadians coverage that balances predictable growth, reliable cash value accumulation, and flexible options for long-term financial goals. It manages $1.62 trillion in assets and holds strong financial ratings, including A+ from A.M. Best and AA from S&P.
A key strength of Sun Life’s whole life insurance is its Participating Account, which holds approximately $21.2 billion in assets and supports over 400,000 active policies, one of the strongest par fund structures in Canada. In this review, we cover Sun Life’s key features, plan options, financial strength, and what makes it stand out among Canadian insurers.
Sun Par Accumulator II
Sun Par Accelerator
SunSpectrum Permanent Life II
10-pay
15-pay
20-pay
pay-to-100
PolicyAdvisor rating
Sun Life whole life insurance earns a 4.5 out of 5 rating from PolicyAdvisor for its strong appeal to high-net-worth Canadians who want global diversification, durable dividend performance, and industry-leading financial strength. Sun Life has one of the strongest par fund structures in Canada, with approximately $21.2 billion in assets supporting more than 400,000 active participating policies
Sun Life’s participating plans share in company profits through annual dividends. The Dividend Scale Interest Rate (DSIR) reflects par account performance and directly influences payouts. Sun Life maintains a 6.25% DSIR, supported by a diversified asset mix and stable underlying earnings.
Sun Life’s participating account financials:
- DSIR: 6.25%
- Participating fund size: $21.2 billion
- Underlying net income: $1.047 billion
- LICAT ratio: 154%
- Asset mix: 27.0% public bonds, 11.9% corporate bonds, 15.6% private fixed income, 8.7% commercial mortgages, 19.2% equities, 15.3% real estate, 2.3% cash/short-term
This diversified mix pairs fixed-income stability with equity and real-asset growth, helping support long-term dividend consistency.
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The DSIR reflects Sun Life’s internal estimate of expected net returns after taxes, claims, and expenses. It influences pricing and dividend projections but is not a direct return to policyholders. Dividends depend on investment results, policyholder experience, and surplus allocation. The Board of Directors approves the final dividend each year, and rates may change.
| Period | DSIR |
| 2017–2021 | 6.25% |
| 2021–2022 | 6.00% |
| 2024–2026 | 6.25% |
The stable DSIR over the past decade reflects disciplined management of participating assets and resilient long-term performance.
Sun Life offers three participating whole life options:
- Par Accumulator II focuses on earlier cash-value growth and liquidity
- Par Protector II emphasizes long-term value and estate planning
- Par Accelerator drives faster early cash-value buildup for clients wanting quicker access to policy value
Rating methodology
PolicyAdvisor rates Sun Life whole life insurance 4.5/5 based on six factors: long-term dividend stability, early/long-term cash-value performance, premium flexibility, par fund strength, fees, and riders.
Dividend Scale - Participating Whole Life Insurance
Compare dividend rates from top Canadian insurers
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| Equitable | 6.05% | 6.25% | 6.40% | 6.40% |
| Manulife | 6.10% | 6.35% | 6.35% | 6.35% |
| iA Financial Group | 5.75% | 6.00% | 6.25% | 6.35% |
| Desjardins Insurance | 5.75% | 6.20% | 6.30% | 6.30% |
| RBC Insurance | 6.00% | 6.00% | 6.25% | 6.30% |
| Sun Life | 6.00% | 6.00% | 6.25% | 6.25% |
| Empire Life | 6.00% | 6.00% | 6.00% | 6.25% |
| Foresters Financial | 5.50% | 5.50% | 5.50% | 6.25% |
| Co-operators | 5.90% | 5.90% | 6.00% | 6.00% |
| Assumption Life | 5.75% | 5.75% | 5.75% | 5.75% |
| Canada Life | 5.25% | 5.50% | 5.50% | 5.75% |
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Pros and cons of Sun Life whole life insurance
The pros and cons of Sun Life whole life insurance show its mix of lifetime stability and growth potential. With three participating plans, one non-participating plan, and a guaranteed issue option, Sun Life’s whole life lineup offers something for every financial need. Here’s a quick look at the overall pros and cons.
Pros:
- Top-tier financial strength with Sun Life’s long history and scale
- Multiple payment-term options (life-pay, 10-pay, 20-pay, 8-pay) offering flexibility
- For participating plans, dividend participation adds value potential
- Non-participating and guaranteed plans offer predictable premiums and simpler structure
Cons:
- Premiums for whole life are significantly higher than term life insurance for the same face amount
- Dividends are non-guaranteed; participating plans carry variability
- In the non-par and guaranteed plans, growth is lower compared to participating options
- Whole life insurance from Sun Life fits best when your goals are long-term, lifetime coverage and legacy or estate planning, not short-term cost minimization
Key benefits of Sun Life whole life insurance
Sun Life whole life insurance comes with a range of long-term benefits designed to provide stability, growth, and protection. It combines guaranteed lifetime coverage with opportunities to build cash value and enhance long-term financial security through these key benefits:
- Lifetime coverage: Your policy remains in force for life
- Fixed level premiums: Premium payments stay the same throughout your chosen premium-pay period
- Tax-advantaged death benefit: Beneficiaries receive the death benefit tax-free
- Cash value accumulation: Your policy builds cash value over time, which you can access through loans or withdrawals
- Dividend potential (for participating plans): Eligible policies may receive annual dividends, which can be used to buy paid-up additions, reduce premiums, withdraw as cash, or earn interest
- Predictable structure options: Non-participating and guaranteed-issue plans offer simpler structures with guaranteed costs and coverage
- Flexible payment terms and optional riders: Choose from life-pay, 10-pay, 20-pay, or 8-pay options (depending on the plan), and enhance coverage with riders such as accidental death, child term, disability waiver, or guaranteed insurability
Types of Sun Life whole life insurance
Sun Life offers five whole life insurance options, including three participating plans, one non-participating plan, and one guaranteed plan. These plans are designed to meet different financial goals and payment preferences.
Participating whole life plans by Sun Life:
- Sun Par Protector II Life Insurance
- Sun Par Accumulator II Life Insurance
- Sun Par Accelerator life insurance
Non-participating whole life insurance by Sun Life:
- SunSpectrum Permanent Life II Insurance
Guaranteed whole life insurance by Sun Life:
- Sun Life Go Guaranteed life insurance
Key features of Sun Life’s participating whole life insurance plans
Sun Life’s participating whole life plans include all the standard benefits of whole life insurance: lifetime coverage, fixed premiums, cash value accumulation, and a guaranteed death benefit. Additionally, they pay annual dividends based on the profits generated by the “par” account, which is funded by participating policy premiums.
Sun Life offers three participating whole life plans:
Sun Par Protector II: Best for long-term estate growth
Sun Par Protector II is ideal for Canadians who want lifetime protection with conservative, reliable cash value growth. It focuses on building guaranteed coverage and steady long-term value.
- Coverage: $50,000 (adults), $25,000 (children) to $15 million
- Cash value: Begins after year 5
- Premium options: Life-pay, 10-pay, or 20-pay
- Dividend options: Paid-up additions, premium reduction, cash payout, or interest-bearing deposit
- Riders available: Accidental death, child term, guaranteed insurability, disability waiver
- Best for: Estate planners or families focused on preserving wealth for future generations while maintaining lifelong coverage
Sun Par Accumulator II: Best for early cash access
Sun Par Accumulator II is designed for those who want to build cash value early and maintain flexibility. It offers faster accumulation and easier access to funds without sacrificing lifetime protection.
- Coverage: $250,000 to $15 million
- Cash value: Begins after year 1
- Premium options: Life-pay, 10-pay, or 20-pay
- Dividend options: Paid-up additions, premium reduction, cash payout, or interest-bearing deposit
- Riders available: Accidental death, child term, guaranteed insurability, disability waiver
- Best for: Professionals and business owners who want access to policy value sooner, or who plan to use the cash value strategically
Sun Par Accelerator: Best for fast equity build-up
Sun Par Accelerator builds equity faster by being fully paid up in just eight years. It’s built for high-income earners who want to grow policy value quickly and enjoy long-term benefits without ongoing payments.
- Coverage: $250,000 to $15 million
- Cash value: Begins after year 1
- Premium options: 8-pay only
- Dividend options: Paid-up additions only
- Riders available: Accidental death, child term, guaranteed insurability, disability waiver
- Best for: Canadians seeking early premium completion and fast-growing equity, ideal for those with higher income and short-term cash flow flexibility
Key differences between Sun Par Protector II, Sun Par Accumulator II, and Sun Par Accelerator
Each of Sun Life’s participating plans serves a distinct goal. Sun Par Protector II focuses on long-term estate growth. Sun Par Accumulator II balances protection and cash value. Sun Par Accelerator builds cash value faster for earlier access.
All three plans offer guaranteed lifetime protection, tax-deferred cash value growth, access to policy loans and living benefits, optional riders like accidental death benefit, child term benefit, and waiver of premium.
However, they differ in how soon cash value grows, how long you pay premiums, and which dividend options are available.
| Category | Sun Par Protector II | Sun Par Accumulator II | Sun Par Accelerator |
| Cash value accumulation | Starts accumulating after 5 years | Start accumulating after 1 year | Start accumulating after 1 year |
| Premium type | Life Pay, 10 Pay, and 20 Pay | Life Pay, 10 Pay, and 20 Pay | 8-pay |
| Coverage amount range |
|
$250,000 to $15,000,000 | $250,000 to $15,000,000 |
| Dividend options |
|
|
Paid-up additions |
| Policy loan availability | 100% of the total cash value minus one year’s interest | 100% of the total cash value minus one year’s interest | 100% of your total cash value minus one year’s interest |
| Tax benefits |
|
|
|
| Payment flexibility | Monthly or annually | Monthly or annually | Monthly or annually |
| Living benefits |
|
|
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| Death benefit guarantee | Guaranteed for life | Guaranteed for life | Guaranteed for life |
| Additional riders | Accidental death benefit, child term benefit, total disability waiver benefit, guaranteed insurability benefit, business value protection benefit, term insurance benefits, etc. | Accidental death benefit, child term benefit, total disability waiver benefit, guaranteed insurability benefit, business value protection benefit, term insurance benefits, etc. | Accidental death benefit, child term benefit, total disability waiver benefit, guaranteed insurability benefit, business value protection benefit, term insurance benefits, etc.
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The value of participating plans depends on how Sun Life’s participating account performs over time. This is reflected in its Dividend Scale Interest Rate (DSIR) and overall portfolio performance.
Key features of Sun Life’s non-participating whole life insurance
Sun Life’s non-participating whole life insurance provides guaranteed lifelong protection with predictable costs. Unlike Sun Life’s participating plans, it doesn’t pay annual dividends, instead, it offers guaranteed cash value growth and fixed premiums for complete predictability.
SunSpectrum Permanent Life II Insurance: Best for long-term guaranteed coverage
- SunSpectrum Permanent Life II is ideal for Canadians who prefer predictable costs and steady value accumulation.It offers guaranteed lifelong coverage and stable premiums, without the variability of dividends. It is Sun Life’s non-participating whole life insurance option. This makes it Guaranteed death benefit: Lifetime protection with a guaranteed payout to your beneficiaries
- Fixed premiums: Payments remain constant throughout your chosen payment period
- Cash value accumulation: Cash value grows at a guaranteed rate starting after two years of coverage
- Coverage range: $25,000 to $25,000,000 for individuals up to age 85
- Premium payment options: Life-pay, 20-pay, 15-pay, or 10-pay
- Optional riders: Term riders, accidental death, child term, and waiver of premium for disability
- Best for: Canadians seeking long-term coverage with guaranteed costs and no exposure to dividend fluctuations
For those who need simpler coverage or may not qualify for traditional underwriting, Sun Life also offers a guaranteed issue whole life option with no medical questions.
Sun Life guaranteed issue whole life insurance
Sun Life Guaranteed Issue Whole Life Insurance provides lifetime protection with guaranteed acceptance and no medical questions. It’s designed for Canadians who want simple, accessible coverage, especially for final expenses or smaller insurance needs.
Sun Life Go Guaranteed Life Insurance: Best for easy, no-medical exam coverage
Sun Life Go Guaranteed Life Insurance provides guaranteed acceptance for Canadians aged 30 to 74, no medical exams or health questions required. It’s designed for those seeking simple, accessible protection, especially for final expenses or smaller coverage needs.
Key features of Sun Life Go Guaranteed Life Insurance
- Guaranteed acceptance: No medical exam or health questionnaire required
- Coverage range: $5,000 to $25,000
- Eligibility: Canadians aged 30 to 74
- Premiums: Fixed for life and guaranteed not to increase
- Payout structure:
- If death occurs within the first two years (non-accidental), Sun Life refunds premiums with interest
- Full coverage applies after two years or for accidental deaths anytime
- Online application: Instant approval available through Sun Life’s digital platform
- Best for: Seniors or individuals with health concerns who need affordable, guaranteed protection for final expenses
| Feature | SunSpectrum Permanent Life II | Go Guaranteed Life Insurance |
| Policy type | Non-participating whole life insurance | Guaranteed whole life insurance |
| Cash value accumulation | Guaranteed cash value accumulation after 2 years | No cash value accumulation |
| Premium type | Fixed premiums with 4 payment options: Life Pay, 20 Pay, 10 Pay, and 15 Pay | Fixed monthly premiums until the age of 95 |
| Coverage amount range |
|
$5,000 to $25,000 (can only be purchased in units of 5,000) |
| Policy loan availability | 100% of the guaranteed cash value minus one year’s interest minus any existing loans | Not applicable |
| Tax benefits | Tax-free death benefit and tax-deferred cash value growth | Tax-free death benefit |
| Payment flexibility | Monthly or annually | Monthly |
| Living benefits |
|
Lump-sum payment equal to 50% of the insurance amount in case of terminal illness |
| Death benefit guarantee | Guaranteed for life | Guaranteed for life |
| Additional riders | Accidental death benefit, child term benefit, total disability waiver benefit, guaranteed insurability benefit, business value protection benefit, term insurance benefits, etc. | Not applicable |
Which limited pay whole life insurance plans are available from Sun Life?
Sun Life offers limited pay options across its whole life plans, letting policyholders finish premiums early while keeping lifetime coverage. Sun Par Protector II and Sun Par Accumulator II are available in 10-pay, 20-pay, and pay-to-age-100 options, while Sun Par Accelerator (8‑pay) is fully paid up in eight years. The non-participating SunSpectrum Permanent Life II also offers 10-pay, 20-pay, and pay-to-age-100 options.
Why Sun Life stands out
Sun Life’s whole life insurance lineup is strengthened by the company’s financial profile, product depth, and global business model. Here’s why Sun Life stands out in Canada’s whole life market:
- Strengthens long-term performance through global diversification and multi-market earnings stability
- Supports long-term guarantees with exceptional capital strength and a 154% LICAT ratio
- Offers flexibility through multiple par product designs, including estate, accumulation, and 8-pay options
- Provides scalable planning advantages for affluent and corporate clients seeking tax-efficient wealth transfer and surplus management
How to choose the right Sun Life whole life insurance plan
Choosing the right Sun Life whole life insurance plan depends on your goals, income, and long-term financial priorities. Each plan is built for a specific purpose, from wealth transfer and estate planning to affordable lifetime protection. Understanding what matters most to you helps narrow down the right fit.
Here’s how to match your plan to your needs:
- For wealth transfer or estate planning, choose a participating plan like Sun Par Protector II
- For flexibility and liquidity, choose Sun Par Accumulator II
- For early premium completion and fast cash-value build-up, choose Sun Par Accelerator
- For guaranteed but simpler lifetime coverage, choose the non-participating plan SunSpectrum Permanent Life II
- For health-challenged individuals or smaller coverage needs, choose the guaranteed-issue plan Sun Life Go Guaranteed Life Insurance
How to buy Sun Life whole life insurance with PolicyAdvisor
Ready to explore Sun Life Whole Life insurance? Get a personalized Sun Life whole life illustration and compare it to top Canadian insurers with PolicyAdvisor’s licensed experts.
Get covered in three easy steps:
- Speak with a licensed PolicyAdvisor expert
- Review Sun Par Protector II, Sun Par Accumulator II, and Sun Par Accelerator alongside top competitors
- Receive a personalized illustration and finalize your application online
PolicyAdvisor licensed experts help you compare options and find the perfect plan for your long-term financial goals.
Frequently asked questions
Is Sun Life whole life insurance worth it?
Yes, Sun Life whole life insurance is worth considering, especially if you’re focused on estate planning, lifelong protection, or building tax-deferred cash value. It provides guaranteed lifetime coverage and stable long-term growth. However, whole life insurance costs more than term coverage, so make sure the premiums fit your long-term budget. A licensed advisor can help you compare options and understand trade-offs before you buy.
Can I borrow against my cash value?
Yes, you can borrow against the cash value of your Sun Life whole life insurance policy. Minimum and maximum loan limits vary by plan. Loans accrue interest and reduce your cash value and death benefit. If the loan balance plus interest exceeds your cash value, the policy may lapse and could trigger tax implications, so it’s important to review your statements regularly.
This feature allows policyholders to access funds for short-term needs without surrendering their policy. However, any outstanding balance plus interest will reduce your death benefit if not repaid.
What happens if I stop paying premiums?
If you stop paying premiums, your Sun Life whole life policy won’t immediately lapse. You can choose to activate the Automatic Premium Loan (APL) option, which uses your policy’s cash value to cover missed payments and keep coverage in force. The APL must be elected at issue or added later by request.
If the loan balance ever exceeds the total cash value, your Sun Life whole life insurance policy could lapse. To avoid lapse, you’ll need to repay or resume regular premium payments.
Does Sun Life offer participating policies with dividends?
Yes, Sun Life offers three participating whole life insurance plans such as Sun Par Protector II, Sun Par Accumulator II, and Sun Par Accelerator. These plans may pay annual dividends, depending on the performance of Sun Life’s participating account.
Dividends may include paid-up additions (to increase coverage and cash value), premium reduction, cash withdrawals, or interest on deposit. Dividends are not guaranteed and may change over time, and available options vary by plan, with the Accelerator offering paid-up additions only.
What is Sun Par Protector II Life Insurance?
Sun Par Protector II is a participating whole life plan designed for affordable, long-term protection. It offers lifetime coverage, fixed premiums, and a guaranteed death benefit. The plan’s cash value starts building after five years, and policyholders can choose flexible payment options such as life-pay, 10-pay, or 20-pay. It also offers four dividend options: paid-up additions, cash withdrawal, premium reduction, and interest-bearing dividends on deposit.
What is Sun Par Accumulator II Life Insurance?
Sun Par Accumulator II is a participating whole life insurance plan built for faster cash value access and long-term growth. It offers lifetime coverage with premiums payable through life-pay, 10-pay, or 20-pay structures. Cash value begins accumulating after the first policy year, and policyholders can benefit from annual dividends through options like paid-up additions, premium reduction, cash withdrawal, or interest-bearing dividends on deposit. This makes the Accumulator II ideal for those seeking both protection and early access to policy value.
What is Sun Par Accelerator Life Insurance?
Sun Par Accelerator is a participating whole life insurance plan designed for faster premium completion. It becomes fully paid-up after eight years (8-pay), offering lifetime coverage with no further payments required.
Like other participating plans, it builds cash value starting after the first year and pays dividends as paid-up additions. The shorter payment period makes it suitable for individuals seeking long-term coverage with accelerated ownership.
What is SunSpectrum Permanent Life II Insurance?
SunSpectrum Permanent Life II is a non-participating whole life insurance plan that provides guaranteed lifetime coverage and steady cash value growth. Unlike participating policies, it doesn’t pay annual dividends. Premiums are fixed and can be paid through multiple structures, life-pay, 10-pay, or 20-pay. The plan’s cash value builds gradually over time and can be accessed through withdrawals or policy loans. It’s a good fit for those who want predictable costs and long-term stability without dividend fluctuations.
What is Sun Life Go Guaranteed Life Insurance?
Sun Life Go Guaranteed Life is a guaranteed issue whole life insurance plan designed for those with pre-existing health conditions or difficulty qualifying for traditional coverage. It offers lifetime protection with coverage amounts ranging from $5,000 to $25,000. There are no medical exams or health questions, and approval is automatic for applicants aged 30 to 74. The plan builds a small cash value over time and includes fixed premiums payable up to age 95. A two-year waiting period applies, if the insured passes away during this time (for any reason other than accidental death), the beneficiary receives a refund of premiums paid plus interest. After two years, the full death benefit becomes payable.
Are par account investments affected by market conditions?
Yes, par account investments are affected by market conditions. While Sun Life employs a long-term investment strategy and diversifies across various asset classes to stabilize returns, fluctuations in interest rates and stock prices can still affect the account’s earnings.
Sun Life whole life insurance remains one of Canada’s most reliable permanent coverage options. Sun Life provides five whole life insurance options, including three participating plans, one non-participating plan, and one guaranteed plan.
You can choose from three participating plans with dividend potential, Sun Par Protector II, Sun Par Accumulator II, and Sun Par Accelerator, or a non-participating option like SunSpectrum Permanent Life II with guaranteed values. For easier approval, Sun Life Go Guaranteed Life provides basic protection for smaller coverage needs.
