In the event of your death from any cause, your beneficiary would receive benefits equal to the amount in effect on your last day of work.
If you retire with at least two years of service and take an immediate pension, coverage reduces by 10% (of your full coverage in effect on your 61st birthday), on April 1 or October 1 immediately following your 61st birthday and every year after that, until is reaches a minimum of $5,000.
If you leave NAV CANADA and defer your pension coverage reduces by 10% (of your full coverage in effect on your 61st birthday), on April 1 or October 1 immediately following your 61st birthday and every year after that, until it reaches reduces to $0 at age 70 (the minimum coverage of $5,000 does not apply).
|Coverage at age 60||$120,000|
|Birth date||March 15|
|10% of coverage in effect at age 61||$12,000|
|Coverage effective April 1 after 61st birthday||$120,000 - $12,000 = $108,000|
|Coverage effective April 1 after 62nd birthday||$108,000 - $12,000 = $96,000|
|Coverage effective April 1 after 63rd birthday||$96,000 - $12,000 = $84,000|
Benefits are not taxable when paid to the beneficiary you name (any interest paid between the date of death and the date of payment is taxable). However, if your estate receives life insurance benefits, they may be subject to probate fees, since they may be considered assets.
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:
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.