No one solution

ADVISOR USE ONLY There is no one solution Customize your advice to the unique needs of each Client What Clients need from their permanent life insurance can vary, and there are many who may be looking for something more than a policy they can “set and forget.” Some may be concerned with maximizing growth and establishing their financial legacy, or they’re looking for a tax efficient alternative investment and are willing to accept some volatility to get there. Others may prefer an approach that prioritizes low risk, access to cash, or cost efficiency. The fact is, just like there’s no one type of Client, there’s no one solution that meets every need. Differences in product features may make one product more suitable than another for meeting a Client’s goals. We’ve broken down participating and universal life insurance, as well as Sun Permanent Life, to help you match them to Client traits and give you an overview of common needs and concerns. Digging into a Client’s profile can help you rethink the best permanent options for their situation and help them get coverage that works. Participating (Par) Universal Life (UL) Sun Permanent Life Common customer traits Common • Wants low maintenance • Values deposit flexibility • Risk averse – wants absolute Client traits • Cares less about deposit flexibility guarantees • Avoids risk but can take a little • Interested in the possibility of Premium managing their own investments • Doesn’t require flexibility options volatility • Prefers a “no maintenance” • Seeks cash value growth • Accepts volatility (if invested in • Seeks liquidity equities) or may desire guarantees product • Needs additional tax-efficient (with no volatility) • 10/15/20 pay or life pay investment vehicles • Wants to see and understand all the details • Seeks liquidity • Needs additional tax-efficient investment vehicles Deposits and charges • Guaranteed 8/10/20/life pay • Guaranteed 10/15/20 pay, YRT 70/85, Level (life pay) We help. You grow.

ADVISOR USE ONLY Participating (Par) Universal Life (UL) Sun Permanent Life Deposits and charges Minimum • Base premium • Minimum annual cost of insurance, • Base premium premium which is typically lower than Par for required • Bundled - unable to separate cost the same initial death benefit • Unbundled – base premium, Transparency of insurance (COI), expenses/taxes and policy fee can be separated of the and investment component • Unbundled - COI, fees, premium tax, (premium tax is embedded in components and investments can be separated base premium). Premium • Premium offset is possible by using deposit dividends to pay future premiums 1 • Deposits are not required if fund • No overfunding flexibility value is sufficient to pay COI charges. • If the guaranteed cash values • Excess premiums (Plus premium) Charges applied can start/stop anytime. • Unlimited excess deposits are allowed exceed the base premium, to deposits and Underwriting may be required without underwriting, but will be the policy can go on automatic investments subject to tax when in excess of premium loan • Carryforward of unused annual tax-exempt line Plus premium room is not allowed • A $25 annual policy fee applies • For 10/15/20 pay policies, the policy • A premium modal factor of • Policy can go on automatic can go on automatic premium loan if premium loan when cash values the cash value exceeds the COI 1.08 (multiplied by annual rate) exceed the base premium applies if paying monthly • Premium tax is deducted from the • Premium tax applies to • Investment expenses incurred by total deposit made into the policy fund premiums the Par account are on average 8-13 bps • An annual MER applies to managed/ index funds • Premium tax applies • A $25 annual policy fee applies • A UL management fee of 1.5% applies • A premium modal factor of 1.08 to some funds (multiplied by annual premium) • No MER or UL fee applies to daily applies if paying monthly interest accounts or guaranteed • A 10% expense load applies on interest accounts Plus premium • No premium modal factor applies Death benefit coverage Guaranteed • The initial death benefit • Dependent on death benefit option • The initial death benefit death benefit selected • Dependent on dividends credited • If a Return of premium Death benefit • Dependent on the dividend • Growth is dependent on return of on death (ROPD) option is growth investments, funding of the policy selected, the total death benefit option chosen and death benefit option increases by the total eligible • Plus premium can result in more premiums paid 2 rapid growth • If no ROPD is selected, the death benefit remains level Access to cash values Guaranteed • Can start as early as year 1 • Only applies to 10/15/20 pay policies, • Starts in year 3 cash values and starts in year 5 • Influenced by the dividend scale • None beyond guaranteed cash Cash value set each year • Influenced by excess funding and values growth investment returns • Maximized when using Plus premium • Use Sun Par Accumulator II for earlier cash value growth and Sun Par Protector II for improved values at life expectancy We help. You grow.

ADVISOR USE ONLY Participating (Par) Universal Life (UL) Sun Permanent Life Access to cash values Options to • Direct withdrawals (taxable) • Direct withdrawal of cash value • Policy loan (potentially taxable) access cash • Policy loan (potentially taxable) (taxable) values • Third-party loan (non-taxable) • Dividends in cash (potentially • Policy loan (potentially taxable) taxable) • Third-party loan (non-taxable) • Ability to access fund values tax-free if disabled, ill, or injured 3 Investments and policy growth Client’s • None - all policyholders are • A variety of investment options • No investment options control over invested in the same Par Account including guaranteed, diversified, investments portfolio-based, managed and Factors that index-based accounts affect policy growth Dividends credited impacted by: Depends on investment selection by Client: • None Volatility of • Dividend scale interest rate (DSIR) • Daily or guaranteed interest account policy returns – the smoothed result of the Par account’s investment returns • Several index or managed fund options Guaranteed (approx. 24) minimum • Mortality, lapse, expense and other interest rate experience • Sun Life Diversified Account Policy (minimum guarantee of 0%) Maintenance • Very low – the 25-year standard • No volatility with funds that have a • None deviation of the DSIR is less guaranteed interest rate (during the than 1% guarantee term) • Medium with smoothed funds • Potentially high with managed / indexed funds • Dividends credited are never • Potentially negative if index or • Not applicable negative managed investment are selected • 0% on DIA, GIA and on the SLDA • Low • Low or high depending on investment • None selection and timing/amount of deposits Common strategies Commonly • Investment Strategy • Investment Strategy • Insured annuity used strategies • Retirement Strategy • Retirement Strategy • Buy/sell agreements • Asset Transfer • Asset transfer • Immediate Finance Arrangement • Immediate Finance Arrangement • Insured annuity • Buy/sell agreements 1  Dividends and premium offset arrangements are not guaranteed. 2  Eligible premiums include base premiums, ROPD premium, and term rider premiums on the primary life. 3  Refer to contract for details. We help. You grow. Sun Life Assurance Company of Canada is the insurer of these products and is a member of the Sun Life group of companies. © Sun Life Assurance Company of Canada, 2022. 810-5155-02-22