Trust GICs advisor resources

Sun GIC Max and SLF Trust GIC are good choices for young savers, busy families, and those either nearing or enjoying retirement who want to minimize risk and stay safe from volatile markets.

Benefits

  • Sun GIC Max provides Clients with a higher interest rate than the SLF Trust GIC by locking in their investments for the entire term. The guaranteed interest means Clients are not exposed to market fluctuations. When held as a registered retirement savings plan (RRSP), the Sun GIC Max can easily be converted into a registered retirement income fund (RRIF) to generate a steady stream of retirement income.

  • SLF Trust GIC offers a guaranteed interest rate that means your clients are not exposed to market fluctuations. The redeemability ensures Clients have access to their money (market value adjustment (MVA) applies) if they need it. When held as an RRSP, the GIC can easily be converted into a RRIF to generate a steady stream of retirement income.

Large case support

To obtain a large case rate quote (minimum $100,000) call 1-800-800-4SUN (4786) or email Large Case Guaranteed Investments@sunlife.com.

Overview

 

Sun GIC Max (non-redeemable)

SLF Trust GIC (redeemable)

Registration types

  • Non-registered
  • Tax-Free Savings Account (TFSA)
  • Registered Retirement Savings Plan (RRSP) / spousal RRSP
  • Registered Retirement Income Fund (RRIF) /spousal RRIF

 

Investment options

  • Daily interest investment
  • Short term (30 - 364 days) and long term (1-5 years). 6 - 25 years are available for RRIF.
  • Short-term Sun GIC Max investments are only available with compound interest and are not available for RRIF.
  • Customer selected end dates (CSED) are available.

 

Investment maturity action

  • Unless alternate instructions are received before the maturity date, short term investments will automatically roll to the same term. All other investment terms will roll to the daily interest investment.

Policy minimums

  • $250 to open or keep in force (RRIF - $5,000 to open)
  • $1,000 per investment
  • PAC (pre-authorized chequing) is not available.

Interest rate

  • Generally higher than SLF Trust GIC**
  • The rate guarantee is 45 days
  • Rates will be interpolated for investments with a CSED.
  • Generally lower than Sun GIC Max**
  • The rate guarantee is 45 days
  • Rates will be interpolated for investments with a CSED.

 

Withdrawals

  • Term investments may only be withdrawn at maturity
  • Daily interest investment can be withdrawn at any time without a market value adjustment (MVA).
  • No MVA is applied to RRIF income payments. (they are not considered withdrawals)

 

  • Market value adjustment (MVA) may apply if cashed before maturity
  • Daily interest investment can be withdrawn at any time without an MVA.
  • No MVA is applied to RRIF income payments. (they are not considered withdrawals)
  • RIF: first 5% is MVA free and must be taken proportionately from all investments

Beneficiary designation

 

  • RRSP/RRIF/TFSA - available in all jurisdictions except Quebec
  • Non-registered - not available

 

Potential deposit protection

 

Potential creditor protection

  • Yes - there may be creditor protection for RRSP/RRIF in bankruptcy situations and under some provincial legislation for other creditor situations, non-registered GICs do not have specific protection against creditors.

Retirement income product conversion

  • The maturity date for an RRSP is December 31 of the year the client reaches age 71. The client can request an earlier date.          • Guaranteed interest investments in a Sun GIC Max RRSP that end after the maturity date of the contract, must be transferred to a Sun GIC Max RRIF.
  • Money in the daily interest investment can be transferred to any product with RRIF registration, withdrawn or transferred out as chosen by the client.

 

  • The maturity date for RRSPs is December 31 of the year the client turns 71. The client can request an earlier date.
  • Interest rates on investments in an RRSP can be maintained when converting to a GIC RRIF.

 

* Principal protection provided up to CDIC deposit coverage limits.

** Interest rates vary depending on the length of the investment term selected and the rates available in the market at the time of purchase.

Interest and investments

There are 3 interest types available.

Each investment within a contract must have the same interest type. If a client wishes to reinvest a maturing investment to an investment with a different interest type (i.e. compound interest to annual interest), a new GIC will be required with a new application completed. Instructions will also be required to transfer the money from the existing GIC to the new GIC.

Regardless of the interest type selected, each product offers:

  • a daily interest investment.
  • guaranteed interest investments (minimum investment $1,000).

Interest types

1.  Compound interest

  • After interest is added to the investment each day, the combined sum continues to earn the same rate as the original principal for the duration of the guaranteed investment.
  • Interest is quoted on an effective annual basis.
  • Interest rates are expressed as a rate per year compounded annually.

2.  Monthly interest - not available for RRIF

  • Interest is calculated and added to the value of each guaranteed interest investment daily.
  • The amount of interest earned each month will equal 1/12th the annual interest. The annual interest equals the principal multiplied by the applicable interest rate.
  • Interest from a guaranteed investment rolls to the daily interest investment automatically on each monthly anniversary date of the individual investment.
  • If the client chooses to withdraw the interest on a monthly basis, electronic funds transfer (EFT) will be used to transfer the amount to the client's bank account.

3.  Annual interest - not available for RRIF

  • Interest is calculated and added to the value of each guaranteed interest investment daily.
  • Interest is quoted on an effective annual basis.
  • Interest from a guaranteed investment rolls to the daily interest investment automatically on each annual anniversary date of the individual investment.
  • If the client chooses to withdraw the interest on an annual basis, there are 2 payment options; cheque or EFT.

When guaranteed interest investments end

  • For terms greater than a year, interest and principal from a guaranteed investment roll to the daily interest investment automatically. Investment instructions are required if a subsequent investment or withdrawal is required.
  • For term less than one year, interest and principal will automatically roll to the same term unless alternate instructions are provided

This document provides information about contributions to Registered Retirement Savings Plans (RRSPs).

The RRSP dollar limit

A taxpayer's RRSP dollar limit is identified on the Notice of assessment or Notice of reassessment produced by the Canada Revenue Agency (CRA). This is referred to as the RRSP contribution room. You can view RRSP limits on the CRA website.

The unused RRSP contribution room

The unused RRSP contribution room measures the amount of RRSP contribution that can be carried forward for future years. It is used for three purposes:

  1. The unused RRSP contribution room determines the amount of RRSP contribution that may be made and deducted in a year allowing a taxpayer to defer the contribution made to their RRSPs. This is the carry forward function.
  2. The unused RRSP contribution room limits the improvements that may be made to the past service benefits of a taxpayer under a Registered Pension Plan (RPP). The RRSP contribution room allows a person to integrate benefits provided under RPPs with contributions to RRSPs. The taxpayer must ensure that their total tax-assisted saving does not exceed the overall allowable limits.
  3. The unused RRSP contribution room is used to determine if a taxpayer has over-contributed to their RRSPs.

To determine the amount of the unused RRSP contribution room, Pension Adjustment (PA) and Past Service Pension Adjustment (PSPA) have to be taken into consideration.

The formula to calculate the unused RRSP contribution room is calculated at the end of a year as:

  1. the unused RRSP contribution room at the end of the preceding tax year plus
  2. the lesser of the RRSP dollar limits for the year and 18% of earned income for the previous year minus
  3. all PAs for the previous year, the net PSPA and RRSP contributions deducted in the year.

While a taxpayer's unused RRSP contribution room will normally be positive or zero, it can also be negative meaning they may have over-contributed.

  • A negative amount may also result where an improvement to the taxpayer's past service benefits under an RPP results in a PSPA that is greater than the available contribution room.
  • A taxpayer is permitted to over-contribute to their RRSP for a lifetime amount of $2,000.00 (but this limit is increased to $8,000.00 if the over contribution was prior to February 27, 1995).

Example 1: No carry-forward of unused RRSP contribution room

Let's track an example through 2019 and 2020 and assume a taxpayer has earned income of $150,000. The 2019 RRSP dollar limit was $26,500 and the 2020 RRSP dollar limit was $27,230.

  • He is not a member of an Registered Pension Plan (RPP) or Deferred Profit Sharing Plan (DPSP), therefore, no Pension Adjustment (PA) or Past Service Pension Adjustment (PSPA).
  • He makes the maximum contribution each year.
  • The unused deduction room at the end of 2019 is as follows:

The unused contribution at the end of 2018

0.00

+ The lesser of RRSP limit and 18% of previous year (2014) earned income +$26,500
- RRSP contribution deducted in 2019

-$26,500

Unused contribution room in 2019

  • The unused contribution room at the end of 2020 is as follows:

0.00

The unused contribution room at the end of 2019 0.00
+ The lesser of RRSP limit and 18% of earned income +$27,230
- RRSP contribution deducted in 2020 -$27,230
Unused contribution room in 2020 0.00

Example 2: Carry-forward of unused RRSP contribution room

Let's track another example through 2019 and 2020.

  • Assume a taxpayer has earned income of $150,000.
  • He is not a member of an RPP or DPSP, so he has no PA or PSPA.
  • He did not make contribution in 2019 therefore he can carry forward unused RRSP contribution room.
  • The unused contribution room at the end of 2019 and 2018 is as follows:

The unused contribution room at the end of 2018

0.00

+ the lesser of RRSP limit and 18% of earned income +$26,230
- RRSP contribution deducted in 2019

-$0.00

Unused contribution room in 2019

  • The unused contribution room at the end of 2020 is as follows:

$26,230

The unused contribution room at the end of 2019 $26,230
+ The lesser of RRSP limit and 18% of earned income +$27,830
- RRSP contribution deducted in 2020 -$27,830
Unused contribution room in 2020 $26,230

Deductible contribution

The contributor to an RRSP may deduct the lesser of:

  1. All contributions paid on or before the day that is 60 days after the end of the year; and
  2. Their RRSP deduction limit for the year.

Client-selected end dates (CSED), available on all Sun Life guaranteed interest products available for sale, allow clients to select the end dates on their guaranteed interest investments. Having this option increases our competitiveness by spreading out both the workload and flow of funds to invest. This, in turn, helps you attract more Clients and retain the ones you have. It can also spread your workload throughout the year.

Client-selected end dates give clients flexibility and control over their money by allowing them to:

  • plan future guaranteed interest investments to roll over at the same time as existing investments, so they can take advantage of large case rate enhancements.
  • choose an end date that suits their needs (planning for an upcoming large purchase, a vacation etc.).
  • choose any length of investment as follows:
    • between 30 days and 5 years
    • RRIF  - between 1 and 25 years

Interest rates will be interpolated. Interpolation is calculated to the nearest .01%.

The formula for interpolation is RATE = R1 + (#days/365) x (R2-R1) where:

  • R1 = rate for the next lowest even year
  • R2 = rate for the next highest even year
  • #days = number of days into the non-even year

There are 2 types of investment options available to Clients:

  • Daily interest investment
  • Guaranteed interest investments

Daily interest investment

Interest

  • The interest rate can fluctuate daily.
  • Interest begins when we receive the application and the money.
  • Interest is calculated and credited daily to the balance of the investment.

Note: Rate enhancement levels do not apply to daily interest.

Advantages

  • Money can be deposited or withdrawn at any time.
  • The money is accessible with no market value adjustment (MVA).
  • Deposits can be made by:
    • cheque,
    • external transfer, or
    • any combination of these.
  • Once $1,000 has accumulated in the daily interest investment, a client may choose to transfer the money into a guaranteed interest investment.

Minimum investments

  • The minimum amount required to open a GIC product is $250.
  • The minimum required to open a guaranteed interest product with RIF registration is $5000.

Note: The minimum opening investment should always be paid with application except in the case of an external transfer.

Guaranteed interest investments

  • The interest rate is guaranteed for a specific term.
  • The minimum amount required to establish a guaranteed interest investment is $1,000.
  • Interest is calculated from the date the guaranteed interest investment is established.

Advantages

The client can have several guaranteed interest investments all within the same plan. With the exception of GICs with RIF registration, a client can have an unlimited amount of investments in one contract - in any or all of the terms available. GIC RRIFs are limited to 5 investments.

Note: GIC products only allow one interest type per plan (i.e. all compound or all annual interest).

The interest rate is guaranteed for any period between:

  • 30 days and 5 years for GIC products
  • 1 and 25 years for all products with RIF registration

This means the client can select:

  • a certain term or (e.g. 19 months, 3 years, etc.)
  • If a certain term is selected, the investment will mature at the end of the selected number of years/months.
  • a specific end date (e.g. October 15, 2021, July 20, 2022, etc.)

On a GIC, money can be withdrawn before the end of a guaranteed interest investment, but may have a market value adjustment (MVA). Sun GIC Max guaranteed interest investments are not redeemable until the maturity of the term.

At the end of the GIC/Sun GIC Max guaranteed interest investment term, the client can:

  • withdraw their money,
  • reinvest their money in a new guaranteed interest investment at the then current interest rate for the selected term,
  • leave their money in the daily interest investment.

If the client has their money in a short term investment (less than 1 year), the money automatically reinvests based on the posted rate available for that product for the same term, unless investment instructions are provided before the investment matures.

If the client has their money in a long term investment (1 year or more), we credit the money to the daily interest investment at maturity, unless investment instructions are provided before the investment matures.

Note: Prior to maturity, notices will be mailed to clients and maturity instructions can be provided up to 45 days before the investment matures.

We "interpolate" interest rates for investment terms that lie between whole years. This interpolation will be calculated to the nearest .01%.

The formula for the interpolation is RATE = R1 + (#days/365) x (R2-R1) where:

  • R1 = rate for the next lowest even year
  • R2 = rate for the next highest even year
  • #days = number of days into the non-even year

e.g. If the 2-year rate is 5% and 3-year rate is 6%, then the rate for 2 years and 8 days (time between start date and end date) is: 5% + (8/365) x (6% - 5%) = 5.021918% so that client would receive 5.02%.

Note: For short-term GIC products, #days/365 in the above formula becomes the #days beyond the lower term for which a rate is stated divided by the number of days between the lower and higher terms (e.g. for a 35-day rate, use (35-30)/(60-30)).

The method of determining the start date remains unchanged:

  • with fund commitment - date of commitment
  • without fund commitment - date funds and/or forms are received at head office

General information

Sun GIC Max (Trust GIC, non-redeemable) / Guaranteed Investment Certificate (Trust GIC, redeemable)

  • $1,000 for guaranteed investments
  • $250 for daily interest investment
  • No pre-authorized chequing (PAC)
  • Short term investments are available (< 1 yr)

 

RRIF registration 

  • Initial policy minimum $5,000
  • Payment minimum - If the full amount of the legislated minimum has not been met, the balance will be paid out December 31 each year

Minimum age requirements to purchase Sun Life Trust GIC products (all registration types)

Province

Age (years)

British Columbia

19

Alberta

18

Saskatchewan

18

Manitoba

18

Ontario

18

Quebec

18

New Brunswick

19

Prince Edward Island

18

Nova Scotia

19

Newfoundland and Labrador

19

Yukon Territory

19

Northwest Territory

19

Nunavut

19

Jointly-owned Sun GIC Max or Guaranteed Investment Certificates (GICs)

Important points to remember:

  • GIC products do not have an annuitant.
  • Joint ownership is only permitted on non-registered contracts.
  • Each applicant must sign the application.
  • Names and dates of birth are required for each applicant.
  • Cannot appoint a beneficiary on non-registered contracts. Beneficiary is the Estate.
  • Laws that apply are the Trust and Loan Companies Act and the Civil Code of Quebec.
  • A jointly-owned corporate account can be purchased.

 

Important points to consider

  • Joint owners can be either Joint tenants with right of survivorship (JTWROS) or Joint tenants in common (JTIC). 

Note: JTWROS is not available in Quebec.

  • For JTWROS owners, the account is automatically transferred to the surviving owner and any interest credited to the account prior to death is reported to the deceased and the surviving owner. Any interest credited after the date of death is taxed to the surviving owner.
  • For JTIC, the account becomes the property of the Estate of the deceased and the surviving owner. Any interest credited prior to the death is taxed to the deceased and the surviving owner. Any interest credited after the date of death is taxed to the Estate of the deceased and the surviving owner. The executor of the estate would provide written direction as to who ownership of the deceased's share should pass to under the will. If the value of the deceased owner's products with us (including his or her share in this contract) is $100,000 or more, probate will be required.

 

Tax note

One of the taxable benefits of a jointly-owned policy, either an Insurance GIC or Trust GIC product, is that the tax burden can be shared by the owners. The tax slip is issued to both owners, and it is between the clients and CRA, who claims the interest. CRA states that if Mr. & Mrs. Smith each put in 50% of the principal, then each owner should claim 50%.

On guaranteed interest investments, early withdrawals are not permitted. Withdrawals can be made any time from the daily interest investment without a market value adjustment (MVA).

  • For monthly or annual interest plans, interest can remain within the plan, be moved to another Sun Life plan or paid by electronic funds transfer (EFT).
  • Full and partial withdrawals are permitted from the daily interest investment. If the contract is to be left in force, a minimum of $250 must be left in the contract.
  • Withdrawals can be paid by cheque or EFT.
  • Withdrawals from RRSP and RRIF are subject to withholding tax.
  • RRIF income payments are not considered withdrawals; they are free of MVA and are taken proportionally from all investments.

On guaranteed interest investments, early withdrawals are subject to a market value adjustment (MVA).

  • For monthly or annual interest plans, interest can remain within the plan, be moved to another Sun Life plan or be paid by electronic funds transfer (EFT).
  • Full and partial withdrawals are permitted. For partial withdrawals from a guaranteed interest investment, the minimum withdrawal is $1000. If the remainder of the investment is to be left intact, there must be a minimum of $1000 left. If there will not be at least $1000 remaining after the withdrawal, the balance will be transferred into the daily interest investment.
  • Withdrawals can be paid by cheque or EFT.
  • If the policy is to be left in force, a minimum of $250 must be left in the contract.
  • Cash values of guaranteed interest investments depend on the interest rate and expense factor at the time of the withdrawal and may be less than the accumulated value.

 

RRIF

  • Each year the first unscheduled withdrawal of up to 5% of the January 1 value of the contract is not subject to MVA.
  • A withdrawal would not be allowed if the effect on an investment is that the balance would be zero before the investment end date, based on the existing income schedule.
  • Income payments are not considered withdrawals; they are free of MVA and are taken proportionally from all investments.
  • Withdrawals from RRSP and RRIF are subject to withholding tax.

How market value adjustments (MVAs) work

Financial institutions offering guaranteed interest investments are at an investment risk and suffer expense losses on early termination of these investments. Therefore, the market value adjustments are necessary to ensure money is not lost.

A Market Value Adjustment will occur whenever funds are withdrawn from a guaranteed interest investment prior to its maturity date. This may decrease the value to less than the original investment amount.

The MVA definition for Superflex/Income Master policies can be found on the back of the application.

The MVA definition for Sun GIC Max/GIC contracts can be found on the back of the application.

Are market value adjustments unique to Sun Life?

No. Adjustments of various sorts are used by all financial institutions. It's important Clients understand  MVAs can be significant.

How can you best deal with market value adjustments?

Don't let Clients put money into a guaranteed interest investment for a period extending beyond the foreseeable time the money will be needed.

Note: Money in the Daily Interest Investment can be withdrawn at anytime with no MVA.

How are market value adjustments calculated?

There are three parts to our market value adjustment:

  1. Investment adjustment to offset our investment risk
  2. Expense adjustment to recover upfront expenses
  3. Expense adjustment to account for liquidity risk

1. Investment adjustment to offset our investment risk

The objective of the investment adjustment is to compensate for current interest rates being different than the contract rate. The net result is the Client neither gains nor loses from a withdrawal which is subsequently reinvested at current rates. We must cash in the investments we have made (bonds, mortgages) so the loss or gain which we incur because of the Client's request to withdraw funds from their guaranteed investment term is passed on to the Client .

2. Expense adjustment to recover upfront expenses

The expense adjustment is used to recover the expenses incurred when the contract was issued such as selling and administrative expenses. These expenses are normally recovered on an annual basis throughout the duration of the contract. If an early withdrawal of the funds is made, we must recoup those expenses which have not yet been recovered. This adjustment also covers the extra expenses involved in processing the early withdrawal.

3. Expense adjustment to account for Liquidity Risk

Liquidity risk arises whenever the liability holders (AA/GIC Clients) demand immediate cash for their financial claims. There are times when this demand for cash results in larger than normal withdrawals for a financial institution. As a consequence, the institution may have to sell some of their less liquid assets to meet the withdrawal demands of the liability holders.

Also, some assets with thin markets generate lower prices when the sale is immediate than if the financial institution had more time to negotiate the sale. Sun Life must account for this expense associated with liquidity risk.

The calculation of the market value involves:

  • projecting the expected cash flows (maturity value on the Compound Interest Plan but also payments on the Annual Interest Plan/Monthly Interest Plan/Registered Retirement Income Fund) at the contract rate
  • finding the discount rate, which reflects current interest rates plus the expense adjustment for upfront expenses and liquidity risk
  • discounting the expected cash flows at the discount rate to the cash value date

The expense adjustments represent the adjustment to the interest rates used in determining the cash value. They vary by level, reflecting the fact that our expenses are lower as a percent of the overall accumulated value for higher levels.

These expense levels can vary by product and are subject to change. They are based on levels at the time of withdrawal, not at the date of deposit.

The following information is designed to clarify how Sun Life administers a successor owner on a TFSA policy. Even though some applications do not specifically ask for a successor owner to be named, a TFSA policy allows the spouse the option of becoming the successor owner upon death of the owner.

TFSA regulations stipulate that only the spouse of an owner can become the successor owner (the survivor) of the TFSA policy.

In order to ensure that the spouse has the option of becoming the owner they must be the only beneficiary named on the policy. At death they will have the option of taking the value in cash or becoming the full owner of the policy who can exercise all of the ownership rights including the right to designate a beneficiary.

This applies to the following individual guaranteed TFSA Trust GIC policies available at Sun Life:

  • Sun GIC Max TFSA
  • SLF Trust GIC TFSA

NOTE: beneficiary designations and successor holder rights do not apply in the province of Quebec for these products.

TFSA Quick Tips

  • When transferring money from another institution watch out for transaction fees. Clients may want to check with the relinquishing institution to confirm whether or not a fee will apply.
  • Make sure you complete a transfer and not a withdrawal. If a withdrawal is completed, the contribution room will only return in the following calendar year and any deposit in the current year will count as a new deposit. Be sure to use Transfer registered assets from another company to a registered product (E63) when completing a TFSA transfer from another institution.
  • Clients are able to hold more than one account as long as they adhere to the annual contribution limit. So don't forget to ask before they make a contribution to make sure they will not exceed their allowable contribution room.
  • Don't forget unused contribution room from previous years can be carried forward and used in future years.
  • Maximize household deposits - spouses can give each other money to contribute to each other's TFSA without affecting their contribution room.
  • In a province where the legal age to enter a contract is 19? The contribution room counts when they are 18, so they are eligible to deposit double in their first year.
  • If a spouse is named as the sole beneficiary of the TFSA the spouse has the option of becoming the sole survivor of the plan. This means that they become the planholder and may exercise all of the planholder rights including the right to designate a beneficiary.
  • The contribution to a TFSA must come from either owner. We will accept a cheque drawn on a joint bank account provided the TFSA owner is one of the bank account holders. For example, a client cannot deposit a cheque into his or her adult child's TFSA or a cheque drawn on an individual's company account cannot be deposited to their personal TFSA.

Sample savings and retirement annual statement

Sun Life Financial Trust Inc. at a glance

Tax and information on death

Sun GIC Max

  • pays the accumulated value, as of the date of death.

Guaranteed Investment Certificate (GIC)

  • pays the cash value as of the date of death if the policy was issued prior to November 25, 2013.
  • pays the accumulated value as of the date of death if the policy was issued on or after November 25, 2013.

Non registered

  • Beneficiary designations are not allowed.
  • For an individually held contract, the value (as above) will be paid to the owner's estate.
  • For a jointly-held contract with rights of survivorship, the GIC will become the sole property of the surviving owner. The surviving owner must provide proof of the death of the deceased owner. The rights of survivorship are not available in Quebec.
  • For a jointly-held contract with tenants in common, the GIC will become the property of the surviving owner and the estate of the deceased owner. The personal representative of the deceased owner must provide proof of death.

Registered Retirement Savings Plan (RRSP)

  • Beneficiary designations are allowed in all jurisdictions except Quebec.
  • Upon the death of the owner, the value (as above) will be paid to the named beneficiary or the owner's estate if no beneficiary designation has been made.
  • In Quebec the value (as above) will be paid to the estate of the deceased.
  • Proof of claim and the right to receive the benefit must be provided.

Registered Retirement Income Fund (RRIF)

  • Beneficiary designations are allowed in all jurisdictions except Quebec.
  • Upon the death of the owner, the value (as above) will be paid to the named beneficiary or the estate if no beneficiary designation has been made.
  • In Quebec the value (as above) will be paid to the estate of the deceased.
  • Proof of claim and the right to receive the benefit must be provided.

Successor contractholder

If the owner elected their spouse to be the successor contractholder, then upon their death the spouse will become the contractholder and will have all rights under the plan, including the right to designate a beneficiary.

Tax Free Savings Account (TFSA)

  • Beneficiary designations are allowed in all jurisdictions except Quebec.
  • Upon death the client's TFSA tax-free status ends and any investment growth or interest earned after the date of death is taxable. This tax will be due the end of the calendar year following the year of death.

Spouse named as sole beneficiary

If a spouse is named as the sole beneficiary they have the option of becoming the successor holder of the plan. This means they become the planholder and may exercise all of the planholder rights including the right to designate a beneficiary. In this case investment growth and interest earned after the date of death continue to be tax-free.

If the spouse chooses not to become the planholder they may choose to transfer the assets to their own TFSA. This transfer will not affect their contribution room as long as they elect this option before the end of the year following the year of death. They must complete and file a government prescribed form RC240 - Designation of an exempt contribution - Tax-Free Saving Account (TFSA) within 30 days of the transfer of funds to their TFSA plan.

If they do not wish to transfer the assets or become the planholder, the proceeds can be paid to them in cash. Any interest earned on the funds after the date of death would be taxable to the surviving spouse in this case.

Spouse not named as sole beneficiary

If the spouse is not the sole beneficiary, the value of the plan on the date of death is paid to the beneficiary(ies) in a lump sum. Any interest earned after the date of death will be taxable to the beneficiary.

For Quebec or if no beneficiary is named, the value of the plan is payable to the planholder's estate. Tax is payable on interest earned after the date of death. This tax is reported by the original TFSA planholder's estate.

Marketing materials

Advisor support materials

PDF Title and description Last update Ordering

810-3571

Advisor guide - Sun Guaranteed Investments (23 page guide)
This guide provides product and administration details on the entire suite of guaranteed products offered by Sun Life including Insurance GICs (Superflex/Income Master) and more traditional Trust GICs (Sun GIC Max/SLF Trust GIC). This guide is for advisors' use only.

December 2022

PDF only - Please print the PDF

810-3575

Sun Guaranteed Investments - A comparison (4 page fact sheet)
Provides a brief overview of 3 of the guaranteed investment options available from SLGI: Superflex accumulation annuity, Sun GIC Max, and SLF Trust GIC.

April 2021

PDF only - Please print the PDF

860-3575

永明保證投資 Sun Guaranteed Investments - A comparison (4 page fact sheet) 

Traditional Chinese. 

Provides a brief overview of 3 of the guaranteed investment options available from SLGI: Superflex accumulation annuity, Sun GIC Max, and SLF Trust GIC.

December 2022 Order
870-3575

永明保障投资 Sun Guaranteed Investments - A comparison (4 page fact sheet)

Simplified Chinese.

Provides a brief overview of 3 of the guaranteed investment options available from SLGI: Superflex accumulation annuity, Sun GIC Max, and SLF Trust GIC.

December 2022 Order
810-3569 Income calculator (2 panel slide rule calculator)
You and clients can use this simple income calculator to see the amount of savings clients will need in retirement. The calculator provides a variety of rates of return and monthly withdrawal values.
April 2021 Order
810-3743 Peace of mind for your investments – CDIC and Assuris protection  (2 panel case study)
This case study explains how your investments can be protected through both CDIC and Assuris
 July 2023 Order
860-3743 

讓你安心地投資 Peace of mind for your investments – CDIC and Assuris protection  (2 panel case study) 

Traditional Chinese.

This case study explains how your investments can be protected through both CDIC and Assuris

 July 2023 Order
870-3743

您的投资,让您安心 Peace of mind for your investments – CDIC and Assuris protection  (2 panel case study) 

Simplified Chinese.

This case study explains how your investments can be protected through both CDIC and Assuris

 July 2023 Order

Sun GIC Max

PDF

Title and description

Last updated

Ordering

810-3533

SLF Trust Sun GIC Max (4 page product feature sheet)
Designed for use with clients to help them understand and reference the features and benefits of the guaranteed interest product - Sun GIC Max.

April 2021

Order

810-3535

Sun GIC Max - Young life stages (4 page fact sheet)
This case study shows two examples of young life stages. The first example explains how a young single man can meet his short-term goal of saving for a down payment. The second is a family with demands of budgeting for their mortgage and the cost of raising a family. Sun GIC Max is suitable for many types of Clients who are looking for a higher interest rate than a redeemable GIC.

April 2021

PDF only - Please print the PDF

810-4833

Sun GIC Max - Retirement (5 page fact sheet)
This case study shows two examples, nearing retirement and in retirement. One example uses Sun GIC Max with the laddering strategy to minimize investment risk in a savings portfolio. The other uses a scenario of a single retired woman who invests in Sun GIC Max to maximize guaranteed interest returns. This solution can be suitable for Clients who are looking for protection, growth and security.

April 2021

PDF only - Please print the PDF

SLF Trust GIC

PDF

Title and description

Last updated

Ordering

810-3570

SLF Trust Guaranteed Investment Certificate (4 page product feature sheet)
Designed for use with clients to help them understand and reference the features and benefits of a guaranteed investment certificate (GIC).

April 2021

PDF only - Please print the PDF

New business instructions

Application for Sun GIC Max or Guaranteed Investment Certificate (GIC): RSP/RIF or Non-registered (810-3547)

Point of sale instructions

  • Review rates and obtain a rate commitment or request a large case rate enhancement.
  • Complete and have the client sign the appropriate product application.
  • The contract documents for GIC products are part of the application and a copy of the application including the contract documents should be given to the client at the point of sale.
  • A contract number will be assigned by us and the client will receive a confirmation statement.
  • Alternatively you can contact the Advisor Service Centre at 1 800 800-4SUN (4786) to have a contract number assigned.

Non-registered GIC contracts:

  • For non-registered products that are individually or jointly owned (including sole proprietor), complete form 4830-E - Identity verification, third party determination and politically exposed persons (PEP) for individuals if:
    • the contractholder(s) answered Yes to the following question(s) in the Identity verification, third party determination, PEP and HIO section:
    • Is the contract to be paid for by a third party or used by or on behalf of a third party?
    • To the best of the contractholder's knowledge, has the contractholder, their family member or close associate, held any of the politically exposed person (PEP) positions or a head of an international organization (HIO) position as listed on the back of this application?
    • additional space is required in the Identity verification, third party determination, PEP and HIO section.

Note: If only the name on the bank account is different from the policy owner complete form 4557-E - Third party determination.  A 4830-E will not be required.  

For an entity-owned (corporation, partnership, trust, etc.) non-registered contract, complete:

Application for Sun GIC Max or Guaranteed Investment Certificate (GIC): Tax-Free Savings Account (810-3548)

Point of sale instructions

  • Review rates and obtain a rate commitment or request a large case rate enhancement.
  • Complete and have the client sign the appropriate product application.
  • The contract documents for GIC products are part of the application and a copy of the application including the contract documents should be given to the client at the point of sale.
  • A contract number will be assigned by us and the client will receive a confirmation statement.
  • Alternatively you can contact the Advisor Service Centre at 1 800 800-4SUN (4786) to have a policy number assigned.

Signature requirements:

When we receive the application we will:

1. Review it to ensure we have all the required information and signatures needed to establish the contract.

  • if there is missing information, we will send you a secure message asking for the information
  • if there are missing signatures or missing information that require a signature to be accepted, for example a beneficiary designation, we will return the application to you for you to return it to us with the required signatures or missing information.

2. A contract number will be assigned by us.

3. Once the funds have been received, we will mail a confirmation statement to your client and send a copy to you.

Note: For applications that are in good order, we will issue the contract effective the date the application is signed. The funds will be deposited to the contract effective for the date the funds are received. The rate applied will be the one in effect on the date the rate is committed.