Please read this important information for Clarica Long Term Care Insurance and Sun Long Term Care Insurance policy owners.

Select the section that applies to you:

The long term care insurance you own provides a weekly benefit when declining health leads to a need for substantial assistance from others. The premiums you pay for this protection are adjustable.

Your policy guarantees that premiums won’t change for the first 5 policy years. After this period, we may increase or decrease the premium on a policy anniversary. If we change the premium, we’ll tell you in advance and the new premium will be guaranteed for at least another 5 policy years.

While we haven’t adjusted your premiums before, an increase is now necessary.

Why are we increasing your premiums now?

Pricing of any insurance product has the primary goal of maintaining the financial strength to pay future claims.

When product features or premiums are adjustable, we regularly review our experience against our assumptions to determine if an adjustment is necessary and check if we’re on track. We review 4 categories:

  • Morbidity – our estimates for the number and length of long term care insurance claims
  • Expenses – the cost of selling and administering these policies
  • Lapses – the number of policy owners cancelling their coverage
  • Interest rates – the rate we earn on the premiums we invest to pay future claims.

We recently reviewed our adjustable insurance products within the context of the ongoing low interest rate environment and have found it necessary to adjust in-force long term care insurance premium rates for the first time.

What does this mean for your policy?

You’ve owned your policy for more than 5 years and your policy premiums have not changed until now.

On your policy anniversary in 2016, the premium will automatically increase. We guarantee this new premium will stay the same for a 5-year period.

Any premium adjustment doesn’t change your coverage.

We will send you a letter at least 10 weeks in advance of the 2016 policy anniversary when the change becomes effective.

We encourage you to connect with your advisor to discuss the change and any concerns you may have. 

Your next steps

Review your coverage and this premium increase

As you think about this premium increase and why you purchased long term care insurance, reflect on the care you may need as you age. Research from the Canadian Life and Health Insurance Association, published in A guide to long-term care insurance, shows there will be a substantial cost to provide long term care to Canadians over the next 35 years. Many of these costs will not be covered by government healthcare programs. This reinforces the importance of being prepared with a financial plan to help cover the costs of the care you may need as you age.

Consider managing your plan and premium

If the cost of your coverage concerns you, there are options to help you keep coverage while lowering your premiums This is called a plan change and is done by adjusting the features of your coverage.

Examples of available plan changes include reducing the weekly benefit amount, moving to a longer waiting period, or shortening the benefit payment period for your policy.

Your advisor can help

We encourage you to review your overall financial plan and discuss your options with your advisor to determine which one is right for you. Your advisor’s contact information will be included in your letter. You may also call the Customer Care Centre at 1-877-SUN-LIFE (1-877-786-5433) for assistance.

Remember, a plan change will not only lower premiums but also reduce the coverage offered by your Clarica Long Term Care Insurance policy. We want to help you make the choices that are right for you.

When you own a long term care insurance policy with Sun Life Financial, you automatically have access to LifestageCare – a members-only website and toll-free telephone service that provides you with unbiased information about local, qualified health care and personal care providers. LifestageCare provides resources that can help you care for yourself and your family.

Your premiums can’t change until after the 5th policy anniversary. We will tell you in advance if this happens.

Your advisor can help

We encourage you to review your overall financial plan and your Long term care insurance with your advisor. You may also call the Customer Care Centre at 1 877 SUN LIFE (1 877 786-5433) for assistance.

When you own a long term care insurance policy with Sun Life Financial, you automatically have access to LifestageCare – a members-only website and toll-free telephone service that provides you with unbiased information about local, qualified health care and personal care providers. LifestageCare provides resources that can help you care for yourself and your family.

The long term care insurance you own provides a weekly benefit when declining health leads to a need for substantial assistance from others. The premiums you pay for this protection are adjustable.

Your policy guarantees that premiums won’t change for the first 5 policy years. After this period, we may increase or decrease the premium on a policy anniversary. If we change the premium, we’ll tell you in advance and the new premium will be guaranteed for at least another 5 policy years.

While we haven’t adjusted your premiums before, an increase is now necessary.

Why are we increasing your premiums now?

Pricing of any insurance product has the primary goal of maintaining the financial strength to pay future claims.

When product features or premiums are adjustable, we regularly review our experience against our assumptions to determine if an adjustment is necessary and check if we’re on track. We review 4 categories:

  • Morbidity – our estimates for the number and length of long term care insurance claims
  • Expenses – the cost of selling and administering these policies
  • Lapses – the number of policy owners cancelling their coverage, and
  • Interest rates – the rate we earn on the premiums we invest to pay future claims

We recently reviewed our adjustable insurance products within the context of the ongoing low interest rate environment and have found it necessary to adjust in-force long term care insurance premium rates for the first time.

What does this mean for your policy?

If you’ve owned your policy for 5 years or more, your premium will automatically increase on your policy anniversary in 2016. If you’ve owned your policy for less than 5 years, your premium will automatically increase on your fifth policy anniversary. This date can be found in your annual policy owner statement. We guarantee this new premium will stay the same for a 5-year period.

A premium adjustment does not change your coverage.

We will send you a letter with details about this increase at least 10 weeks in advance of the policy anniversary when the change becomes effective.

We encourage you to connect with your advisor to discuss the change and any concerns you may have.

Your next steps

Review your coverage and this premium increase

As you think about this premium increase and why you purchased long term care insurance, reflect on the care you may need as you age. Research from the Canadian Life and Health Insurance Association published in A guide to long-term care insurance, shows there will be a substantial cost to provide long term care to Canadians over the next 35 years. Many of these costs will not be covered by government healthcare programs. This reinforces the importance of being prepared with a financial plan to help cover the costs of the care you may need as you age.

Consider managing your plan and premium

If the cost of your coverage concerns you, there are options to help you keep coverage while lowering your premiums. This is called a plan change and is done by adjusting the features of your coverage.

Examples of available plan changes include reducing the weekly benefit amount, moving to a longer waiting period, or shortening the benefit payment period for your policy. 

Your advisor can help

We encourage you to review your overall financial plan and discuss these options with your advisor to determine which one is right for you. Your advisor’s contact information will be included in your letter. You may also call the Customer Care Centre at 1-877-SUN-LIFE (1-877-786-5433) for assistance.

Remember, a plan change will not only lower premiums but also reduce the coverage offered by your Sun Long Term Care Insurance policy. We want to help you make the choices that are right for you.

When you own a long term care insurance policy with Sun Life Financial, you automatically have access to LifestageCare – a members-only website and toll-free telephone service that provides you with unbiased information about local, qualified health care and personal care providers. LifestageCare provides resources that can help you care for yourself and your family.