Sun Life Financial announced the debut of its first bonus fixed indexed annuity, SunDex Bonus. The main feature of the annuity is the boost it gives to a policyholder’s ability to save more money. Premiums under $250,000 receive a 6 percent bonus that is immediately added to the account, where it begins accruing interest. Premiums of at least $250,000 receive a 7 percent bonus. After five years, the bonuses are vested.
The policy also features Sun Life’s InControl Lifetime Benefit, which allows clients to defer all or part of the permitted annual withdrawals and store them in the contract for future use. Sun Life says the product lets current and pre-retirees accomplish four things:
- Boost savings.
- Secure lifetime income, without annuitization.
- Store deferred income.
- Start, stop and store income payments to meet changing retirement needs.
The SunDex Bonus carries a 10-year surrender charge schedule, and the bonus can be lost due to withdrawals occurring in the first five years, the commencement of annuity payment options, or a death benefit distribution.