2015 Group Benefits
Advisor Appreciation Program
The power of one bonus program to reward your business
Appreciation is
2015 Group Benefits
Advisor Appreciation Program
Advisor eligibility
All licensed advisors except Managing General Agents (MGAs) within Canada and Investors Group advisors are eligible to qualify for an annual incentive payment under the Sun Life Financial 2015 Group Benefits Advisor Appreciation Program.
New business bonus
To qualify for the new business bonus, your Sun Life Financial SunSolutions and SunAdvantage sales premium and case count from January 1st to December 31st, 2015 are combined and must satisfy the combined threshold outlined below.
It no longer matters what mixture of SunSolutions or SunAdvantage new business has been sold, as long as when the premiums and number of cases are combined, they meet or exceed the combined new business bonus thresholds. Examples of what could qualify include:
• Two SunAdvantage cases and one SunSolutions case sold with a combined sales premium greater than or equal to $75,000 • Three SunSolutions cases and no SunAdvantage cases sold with combined sales premium greater than or equal to $75,000 • Three SunAdvantage and no SunSolutions cases sold with a combined sales premium greater than or equal to $75,000
+
To qualify for bonus, your new business block as of December 31, 2015 must satisfy the following two thresholds:
1. Total combined new sales premium greater than or equal to $75,000 2. Total combined new sales case count greater than or equal to three cases
sunsolutions new business
*• Total new sales premium • Total new sales case count
sunAdvantage new business
*• Total new sales premium • Total new sales case count
SunSolution new sales premium up to $999,999 will earn a 3.20% bonus. New sales premium exceeding this threshold will earn a 4.50% bonus.
SunAdvantage new sales premium will earn bonus based on the SunAdvantage scale as noted above.
*
New business bonus terms and conditions
• SunSolutions and SunAdvantage new sales premium and case count is based on the sold policy effective date. • Association, Creditor and Affinity programs are excluded.
• Bonus will be calculated for and paid on commission based policies only.
New business case count
• Multiple divisions or policies for one client are considered as one case.
• For SunAdvantage or SunSolutions cases sold by multiple agents of record (“AOR or Split Cases”), the percentage of total sold premium assigned to each advisor/broker will qualify towards the case count. For example, 3 split cases of 0.5 will give an advisor 1.5 cases and not 3 cases and they will not be eligible for bonus. The sum of their cases needs to meet the criteria in order for them to qualify.
• A sold SunSolutions contract must contain non-refund premium in order to count towards the combined new business case count threshold. Sold contracts that are 100% ASO or 100% refund premium do not qualify and cannot be included in new business case count thresholds.
New business premium
• Only non-refund premium is counted towards the combined new business premium thresholds. ASO and refund premium are excluded from the calculations for both the combined new business thresholds and bonus scales.
Once you satisfy the combined new business bonus thresholds, the appreciation award for your SunSolutions and SunAdvantage sales premium respectively will be based on the following bonus scales:
sunsolutions
2015 Qualifying new sales premium
sunsolutions Bonus scale
Qualifying SunSolutions new sales premium is applied to the scale below
from to Bonus rate
$1 $999,999 3.20% $1,000,000 + 4.50%
Note: The portion of total Sales premium in excess of $1,000,000 is bonused at 4.50%
sunAdvantage Bonus scale
Qualifying SunAdvantage new sales premium is applied to the scale below
from to Bonus rate
$1 $99,999 1.20% $100,000 $124,999 1.45% $125,000 $149,999 1.70% $150,000 $174,999 1.95% $175,000 $199,999 2.20% $200,000 $224,999 2.45% $225,000 $249,999 3.20% $250,000 + 4.50%
sunAdvantage
New business bonus calculation examples
sunsolutions new business during 2015
Total new business case count 1.00 Total new business premium $250,000
sunsolutions new business bonus
Total capped new business premium $250,000
Bonus rate 3.20%
Total bonus paid $8,000
combined sun Life financial Group Benefits
Total new business case count 3.00 Total new business premium $300,000
sunAdvantage new business during 2015
Total new business case count 2.00 Total new business premium $50,000
sunAdvantage new business bonus
Total new business premium $50,000
Bonus rate 1.20%
Total bonus paid $600
new business bonus thresholds
Total new business case count 3.00 Total new business premium $75,000
total new business bonus paid $8,600
Advisor A
> = > =
sunsolutions new business during 2015
Total new business case count 3.00 Total new business premium $1,500,000
sunsolutions new business bonus
Total capped new business premium $1,500,000 Bonus rate 3.20% (for $999,999) & 4.50% (for $500,001) Total bonus paid $54,500
combined sun Life financial Group Benefits
Total new business case count 8.00 Total new business premium $1,660,000
sunAdvantage new business during 2015
Total new business case count 5.00 Total new business premium $160,000
sunAdvantage new business bonus
Total new business premium $160,000
Bonus rate 1.95%
Total bonus paid $3,120
new business bonus thresholds
Total new business case count 3.00 Total new business premium $75,000
total new business bonus paid $57,620
Advisor C
> = > =
sunsolutions new business during 2015
Total new business case count 0.00 Total new business premium $0
combined sun Life financial Group Benefits
Total new business case count 2.00 Total new business premium $80,000
sunAdvantage new business during 2015
Total new business case count 2.00 Total new business premium $80,000
new business bonus thresholds
Total new business case count 3.00 Total new business premium $75,000
Advisor does not qualify for bonus as failed to meet combined new business case count threshold
Advisor B
< > =
Persistency bonus
To qualify for the persistency bonus, your SunSolutions and SunAdvantage blocks are treated separately and must satisfy the thresholds outlined below:
sunsolutions persistency thresholds:**
To qualify, your SunSolutions block must satisfy the three following thresholds:
1. Total in-force cases as of January 1st, 2015 greater
than or equal to five
2. Total in-force premium as of January 1st, 2015
greater than or equal to $1,000,000
3. Minimum persistency as of December 31st, 2015
greater than or equal to 93.0%
sunAdvantage persistency thresholds:**
To qualify, your SunAdvantage block must satisfy the three following thresholds:
1. Total in-force cases as of January 1st, 2015
greater than or equal to four
2. Total in-force premium as of January 1st, 2015
greater than or equal to $200,000
3. Minimum persistency as of December 31st, 2015
greater than or equal to 88.0%
sunsolutions
2015 Qualifying in-force premium
sunsolutions persistency bonus scale
Qualifying SunSolutions in-force premium is applied to the scale below
persistency rAte
from to Bonus rate
93.0% 93.9% 0.50% 94.0% 94.9% 0.60% 95.0% 95.9% 0.70% 96.0% 96.9% 0.80% 97.0% 97.9% 0.90% 98.0% 99.9% 1.40% 100.0% 1.60%
sunAdvantage persistency bonus scale
Qualifying SunAdvantage in-force premium is applied to the scale below
persistency rAte
from to Bonus rate
88.0% 88.9% 0.10% 89.0% 89.9% 0.20% 90.0% 91.9% 0.30% 92.0% 92.9% 0.40% 93.0% 93.9% 0.50% 94.0% 94.9% 0.60% 95.0% 95.9% 0.70% 96.0% 96.9% 0.80% 97.0% 97.9% 0.90% 98.0% 99.9% 1.40% 100.0% 1.60%
sunAdvantage
2015 Qualifying in-force premium
(
Total business-in-force premium as of January 1st, 2015 less)
Total termination premium as of December 31st, 2015
Total business-in-force premium as of January 1st, 2015
persistency calculation:
(
Total business-in-force premium as of January 1st, 2015 less)
Total termination premium as of December 31st, 2015
persistency bonus calculation: X Bonus rate %
Once you satisfy either the SunSolutions or SunAdvantage persistency bonus thresholds, your appreciation award for your SunSolutions or SunAdvantage in-force qualifying premium respectively, will be based on the following bonus scales:
**
Persistency bonus special notes
• Association, Creditor and Affinity benefit programs are excluded.
• Bonus will be calculated for and paid on commission based policies only.
In-force case count
• Multiple division or policies for one client are considered as one case.
• For SunAdvantage or SunSolutions cases sold by multiple agents of record (“AOR or Split Cases”), the percentage of total sold premium assigned to each advisor/broker will qualify towards the case count. For example, 3 split cases of 0.5 will give an advisor 1.5 cases and not 3 cases and they will not be eligible for bonus. The sum of their cases needs to meet the criteria in order for them to qualify.
• An in-force policy must contain non-refund premium in order to count towards the persistency bonus case count threshold. Contracts that are 100% ASO or policies that are 100% refund premium do not qualify.
In-force & terminated premium
• Only non-refund premium is counted towards the persistency bonus premium thresholds. ASO and refund premiums are excluded from counting towards both the persistency bonus thresholds and bonus scales.
• Non-refund premium is capped at $500,000 per case for both SunAdvantage and SunSolutions when applied to the persistency bonus premium thresholds and bonus scales.
total persistency bonus paid $23,410
Advisor A
total persistency bonus paid $0
Advisor B
sunsolutions in-force business
Total in-force case count as of January 1st, 2015 6.00
Total in-force premium as of January 1st, 2015 $5,200,000
Total in-force capped premium as of January 1st, 2015 $4,700,000
Total terminated cases as of December 31st, 2015 1.00
Total terminated premium as of December 31st, 2015 $300,000
Total terminated capped premium as of December 31st, 2015 $300,000
Persistency as of December 31st, 2015 93.6% sunsolutions persistency bonus
Total qualifying capped in-force premium $4,400,000
Bonus rate 0.50%
Total bonus paid $22,000
sunsolutions persistency bonus
The advisor does not qualify for SunSolutions persistency bonus as in-force case count and premium thresholds were not satisfied
sunsolutions in-force business
Total in-force case count as of January 1st, 2015 3.00
Total in-force premium as of January 1st, 2015 $900,000
Total terminated premium as of December 31st, 2015 $0
Persistency as of December 31st, 2015 100.0%
sunsolutions persistency bonus
Total qualifying capped in-force premium $3,500,000
Bonus rate 1.60%
Total bonus paid $56,000
sunsolutions in-force business
Total in-force case count as of January 1st, 2015 7.00
Total in-force premium as of January 1st, 2015 $4,000,000
Total in-force capped premium as of January 1st, 2015 $3,500,000
Total terminated cases as of December 31st, 2015 0.00
Total terminated capped premium as of December 31st, 2015 $0
Persistency as of December 31st, 2015 100.0%
sunAdvantage in-force business
Total in-force case count as of January 1st, 2015 5.00
Total in-force premium as of January 1st, 2015 $250,000
Total in-force capped premium as of January 1st, 2015 $250,000
Total terminated cases as of December 31st, 2015 1.00
Total terminated premium as of December 31st, 2015 $15,000
Total terminated capped premium as of December 31st, 2015 $15,000
Persistency as of December 31st, 2015 94.0% sunAdvantage persistency bonus
Total qualifying capped in-force premium $235,000
Bonus rate 0.60%
Total bonus paid $1,410
sunAdvantage persistency bonus
The advisor does not qualify for SunAdvantage persistency bonus as persistency rate threshold was not satisfied
sunAdvantage in-force business
Total in-force case count as of January 1st, 2015 10.00
Total in-force premium as of January 1st, 2015 $320,000
Total terminated premium as of December 31st, 2015 $100,000
Persistency as of December 31st, 2015 68.8%
sunAdvantage persistency bonus
The advisor does not qualify for SunAdvantage persistency bonus as in-force case count and premium thresholds were
not satisfied
sunAdvantage in-force business
Total in-force case count as of January 1st, 2015 3.00
Total in-force premium as of January 1st, 2015 $96,000
Total terminated premium as of December 31st, 2015 $0
Persistency as of December 31st, 2015 100.0%
Advisor C
Persistency bonus calculation examples
A note about disclosure
Our mutual customers need to have complete and accurate information about the benefits plans they purchase from us. That can only be assured through full and meaningful disclosure, including disclosure about the insurer-advisor relationship and advisor compensation related to the products and services they buy. Please ensure your clients are fully aware of all commissions and other forms of compensation you receive from Sun Life Financial and other suppliers.
About Sun Life Financial
A market leader in group benefits, Sun Life Financial serves more than 1 in 6 Canadians, in over 12,000 corporate, association, affinity and creditor groups across Canada.
Our core values – integrity, service excellence, customer focus and building value – are at the heart of who we are and how we do business.
Sun Life Financial and its partners have operations in 22 key markets worldwide including Canada, the United States,
the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.
We’d like to tell you more
If you would like more information about the 2015 Group Benefits Advisor Appreciation program, just contact your Sun Life Financial
group representative.
www.sunlife.ca
SunAdvantage is a trademark of Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies.
Printed in Canada GRP1737-E-01-15 mr-ny
