An insurer says it will pay a bonus of either 6% or 7% to purchasers of a new annuity contract.
The Wellesley, Mass., U.S. division of Sun Life Financial Inc., Toronto, will be tying policyholder returns on the new SunDex Bonus Fixed Index Annuity to growth in the S&P 500 stock index.
Buyers will get a bonus of 6% for premium payments under $250,000 and 7% for premium payments equal to or greater than $250,000, Sun Life says.
Sun Life will add the bonus to the contract account value immediately, and the bonus will vest fully after 5 years, the company says.