What to Do When Your Sun Life Renewal Rates Skyrocket

When your Sun Life term policy comes up for renewal, it’s easy to feel caught off guard by the sudden jump in premiums. You’re not alone, many people face the same dilemma, wondering what to do next. Do you stick with the renewal, or is there a better option? The good news is, you’ve got choices.

In this blog, we’ll walk through what happens when your policy renews, why costs skyrocket, and what you can do to keep your coverage without draining your wallet. Let’s explore the options that work for real-life situations like yours.

In this article:

• What Happens When a Sun Life Term Policy Renews
• Sun Life Term Policy Renewal
• Converting Your Sun Life Term Policy to Permanent Insurance
• Lower Your Sun Life Coverage to Manage Premium Costs
• Shop for a New Policy
• What Should You Consider Before Choosing a Life Insurance Renewal Option?
• Frequently Asked Questions (FAQs) About What to Do When Your Sun Life Renewal Rates Increases

What to Do When Your Sun Life Renewal Rates Skyrocket

When a Sun Life term life insurance policy reaches the end of its initial term, whether it’s 10, 20, or 30 years, many policyholders are confronted with a significant increase in their premiums if they opt to renew the coverage. This spike in costs often catches people off guard, especially those who assumed the new rates would mirror what they were previously paying.

The sharp increase stems from the fact that premiums are recalculated based on the policyholder’s current age and associated risk factors. As we age, the risk of health complications and mortality increases. Insurance companies account these factors for their renewal rates.

For many, this renewal process can feel shocking, but keep in mind that the rise in cost isn’t a random hike. Fortunately, there are strategies available to manage or even reduce the financial burden. These include renewing, converting to permanent insurance, adjusting coverage, or shopping for a new provider. Each option comes with its own advantages depending on your current situation, health, and financial goals.

After understanding the renewal process and the potential cost hikes, it’s natural to wonder what your next steps should be. Fortunately, you’re not stuck with just one option. Whether you want to stick with your current plan or explore alternatives, knowing your choices can make a huge difference in how you manage your coverage and budget moving forward. So, what should you do if your renewal rates skyrocket? Let’s explore the strategies that can help you find the right balance between keeping your life insurance protection and managing your costs.

Sun Life Term Policy Renewal

When your Sun Life term life policy comes up for renewal, automatic renewal can seem like the easiest route. You won’t need to undergo a new medical exam, and your coverage continues seamlessly. But, there’s a catch – the premiums will significantly increase, as they’re recalculated based on your current age.

For example, if you had a $500,000 policy that cost $50 a month when you were 30, by the time you’re 50, that same coverage could now cost you around $300 a month. While this can feel like a steep jump, it’s important to remember that you’re older now, and the risk to the insurer has grown.

This option works well for those who still need coverage but have developed health conditions that may make it difficult to qualify for a new policy. Though expensive, it ensures you’re still protected without the need for medical underwriting.

At Protect Your Wealth, we understand that the skyrocketing premium increase after renewal isn’t a viable option for everyone. For many policyholders, the sharp rise in costs can put unnecessary strain on their finances, making it difficult to continue with the same coverage. This uncertainty often leads to anxiety about maintaining life insurance without overspending. The good news is there are flexible solutions available, such as converting to permanent insurance or exploring new term policies from different providers. Our experienced advisors are here to help guide you through these options, ensuring you find a solution that works best for your financial situation.

Converting Your Sun Life Term Policy to Permanent Insurance

Converting your Sun Life term life insurance policy to permanent insurance is an option that offers lasting protection without the hassle of a new medical exam. Whether you opt for whole life or universal life, converting ensures that your coverage will remain in place for the rest of your life/

One of the major benefits of permanent insurance is that it builds cash value over time. For example, if you convert to a whole life policy, you’re not only securing lifelong coverage but also accumulating equity that you can borrow against down the road. This added financial flexibility makes permanent insurance an appealing choice for those looking to supplement their estate planning or meet other long-term financial goals.

Although the premiums for permanent policies are generally higher than term policies, conversion can actually be more cost-effective over time. Instead of renewing a term policy at ever-increasing rates, converting locks in lifetime protection. Doing so can save you money in the long run. This option is particularly attractive for those who need coverage for life, have higher income, or are looking to build cash value that can be used for future financial planning.

Lower Your Sun Life Coverage to Manage Premium Costs

If the cost of your Sun Life term policy renewal feels overwhelming, one practical solution is to adjust your coverage by lowering the death benefit to a more manageable amount. For example, if your original policy was for $1,000,000, you could reduce it to $500,000 to maintain a more affordable premium.

This option allows you to keep life insurance protection in place without facing the full weight of increased renewal costs. It’s an ideal choice for individuals whose financial responsibilities have decreased, such as those who’ve paid off their mortgage or have grown, independent children.

Shop for a New Policy

If your Sun Life renewal premiums feel unmanageable, it may be time to explore a new term policy with another provider. Life insurance rates can vary widely between companies, and switching providers might help you secure a more affordable option.

If you’re in good health, a new policy could offer a significantly lower premium than what’s being offered at renewal. To get started, compare rates from major insurers like Sun Life, Manulife, and Canada Life. Make sure any new policy aligns with your current financial needs and coverage goals.

This option is especially beneficial for healthy individuals who want to lock in a lower premium or feel their current provider’s renewal rates are too high.

What Should You Consider Before Choosing a Life Insurance Renewal Option?

When deciding on the best course of action after your Sun Life policy renewal, several key factors should guide your choice:

1. Age and health status: Your current age and health play a huge role in determining the best option. If you’re younger and in good health, you might find that shopping for a new policy offers better rates. However, if health concerns have emerged, renewing or converting might be more practical.
2. Financial obligations: Evaluate your current financial responsibilities, such as paying off a mortgage, funding your children’s education, or long-term estate planning. This will help you determine how much coverage you actually need.
3. Budget: Finally, consider how much you’re comfortable spending on premiums. Balancing affordability with sufficient coverage is key to maintaining peace of mind without overstretching your budget.

Frequently Asked Questions (FAQs) About What to Do When Your Sun Life Renewal Rates Increases

Find a solution for what you’re looking for 

Finding life insurance for a high-risk job is important, and with the right company, you can get the coverage you need to protect yourself and your family. At Protect Your Wealth, we work with and compare policies and quotes from the best life insurance companies in Canada to ensure the best solution for you and your needs. We provide expert life insurance solutions, including no medical life insurance, critical illness insurance, term life insurance, and permanent life insurance to build the best package to give you the protection you need. 

Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today! We’re proudly based out of Hamilton, and service clients anywhere in Ontario, British Columbia, Alberta, and Manitoba including areas such as Kitchener, Kamloops, Edmonton, and Portage la Prairie.