Basic Life Insurance Living Benefits Loan Program
If you become terminally ill with a life expectancy of 12 months or less, you may apply for a commercial loan under the Sun Life Benefits Loan Program. Under this program, you may receive an advance of up to 50% of your Basic Life coverage, to a maximum of $100,000, provided that:
- you suffer an injury or illness expected to result in death within 12 months, from which there is no reasonable prospect of recovery, based on your physician’s medical information,
- you have not named an irrevocable beneficiary,
- you submit a written request to Sun Life,
- NAV CANADA authorizes the payment, and
- you and your beneficiary sign an agreement before the benefit is paid.
If you are within 5 years of a scheduled reduction of Basic Life coverage, the advance you may receive cannot exceed 50% of the lowest reduced amount of the Basic Life coverage, to a maximum of $100,000. If you are within 5 years of the termination of your Basic Life coverage, you may not apply for a commercial loan under the Sun Life Living Benefits Loan Program. This program is subject to other restrictions, as advised by Sun Life.
The amount paid (plus accumulated interest) will reduce the Basic Life Insurance benefit your beneficiary receives when you die.