Universal life is the policy type the secondary market sees most often, and for a straightforward reason: it is flexible enough to be underfunded, and the cost of insurance inside it rises steeply with age. A policy that looked comfortable at 55 can be consuming its own account value at 78. Owners of Sun Life universal life contracts run into a second complication on top of that, which is figuring out who holds the contract now.
This page covers the Sun Life U.S. corporate history you need in order to reach the right service department, how to read the one document that decides whether keeping the policy makes sense, and what the change-of-ownership step involves if a sale is on the table. Pine Lake Life Solutions is an independent education resource. Pine Lake does not purchase policies and is not affiliated with, endorsed by, or acting for Sun Life.
In This Article
- Your Sun Life UL May Not Be Serviced by Sun Life Anymore
- What Sun Life Kept in the United States
- Why Universal Life Quietly Runs Out of Room
- The In-Force Illustration Is the Document That Decides Everything
- Change of Ownership Is the Step a Settlement Actually Requires
- Realistic Alternatives if a Settlement Is Not Available
- Financial Strength and Where to Confirm It
- Frequently Asked Questions
Your Sun Life UL May Not Be Serviced by Sun Life Anymore
Sun Life Financial announced on December 12, 2011 that it would close its domestic U.S. variable annuity and individual life products to new sales. Roughly a year later it went further. On August 2, 2013, Sun Life Financial completed the sale of 100% of the shares of Sun Life Assurance Company of Canada (U.S.) to Delaware Life Holdings, LLC, a company owned by shareholders of Guggenheim Partners, for a base purchase price of US$1.35 billion.
The transaction covered the domestic U.S. variable annuity, fixed annuity and fixed index annuity business, along with corporate- and bank-owned life insurance products and variable life products. Because the sale was a sale of the shares of the issuing company itself rather than a reinsurance arrangement, policies issued by that entity moved with it. Delaware Life Insurance Company is the name that block operates under today, and Sun Life has maintained a customer-facing web servicing path pointing former Sun Life U.S. customers toward Delaware Life.
What this means in practice: read the issuing company name on your policy’s face page, not the marketing logo on the folder it came in. Then confirm the current administrator before you assume the phone number you have is still correct. This ownership history is the single most useful fact on this page, because sending a form to the wrong company is the most common source of delay.
What Sun Life Kept in the United States
At closing, then-CEO Dean Connor described the remaining U.S. footprint directly: “Our U.S. operations are now focused on our successful employee benefits business and our voluntary benefits business.” Sun Life’s U.S. presence today is built around group and voluntary employee benefits rather than individual life insurance.
So an individual universal life contract with Sun Life branding is almost certainly a legacy contract from a product line that has not been sold in the U.S. since 2011. That is not a warning sign. Closed blocks are normal in this industry and contractual guarantees travel with the policy. It simply changes who you call.
Why Universal Life Quietly Runs Out of Room
A universal life policy is best understood as an account with two flows. Premiums and interest credits go in. Cost of insurance charges, administrative fees, and rider charges come out. Cost of insurance is priced on the amount of pure death benefit the insurer is at risk for, and it climbs with the insured’s age, often sharply after 75.
When a policy is funded at a level that only ever worked under an optimistic crediting assumption, the account value stops growing, then starts shrinking, then reaches a point where the scheduled premium no longer covers the monthly deductions. Most owners never see this coming, because the annual statement reports a balance rather than a projection. The policy does not announce that it will lapse in six years. It just shows a smaller number than last year.
Two consequences follow. First, a policy heading toward lapse is worth checking on now, not after a grace notice arrives. Second, a policy that is genuinely unaffordable is exactly the situation where the secondary market can be relevant, because the alternative to a sale is often a lapse that returns nothing at all.
| Document | Who provides it | Why it matters |
|---|---|---|
| Policy face page | Your own file | Names the issuing company and the original face amount |
| Most recent annual statement | Current administrator | Shows account value, loans and charges to date |
| In-force illustration | Current administrator, on request | Projects how long the policy survives at various premium levels |
| Verification of coverage | Current administrator | Written confirmation the policy is in force and its terms |
| Change of ownership form | Current administrator | The form any ownership transfer is actually executed on |
The In-Force Illustration Is the Document That Decides Everything
An in-force illustration is a projection the carrier runs on your actual policy, using your actual account value and charges. It is not a sales document and it is not your annual statement. It answers the only question that matters: at what premium level does this policy stay alive, and for how long.
Ask for more than the default. A useful request looks like this: run the policy at current charges showing the premium required to carry it to age 95 and to age 100; run a second version at guaranteed maximum charges and the guaranteed minimum crediting rate; and run a third showing how long the policy survives if no further premiums are paid. That third scenario is often the eye-opener. Carriers generally provide illustrations at no charge on the owner’s request, though turnaround can take several weeks.
Bring it to any conversation about value. Anyone evaluating a universal life policy without one is guessing.
Change of Ownership Is the Step a Settlement Actually Requires
A life settlement is not a special product. It is a change of policy ownership and beneficiary, executed on the carrier’s own forms. The carrier’s role is administrative: verify the owner’s signature, confirm the policy is in force, process an absolute assignment or ownership change, and issue a verification of coverage.
For a Sun Life-issued universal life contract that means identifying the current administrator and requesting its change of ownership and absolute assignment forms, since form sets are company-specific and an out-of-date form gets rejected. Check the contract for anti-assignment language, rare in individual policies but common in group ones. Obtain a verification of coverage confirming face amount, in-force status, premium mode and any loans. Any outstanding loan is netted against what the owner receives. None of this obligates you to sell; requesting forms is a routine service request.
Realistic Alternatives if a Settlement Is Not Available
Eligibility in the secondary market is never guaranteed and depends on age, health, face amount, policy type and premium load. If a sale is not available, several other levers exist and most owners do not know they have them.
- Reduce the death benefit. Lowering the face amount on a universal life policy lowers the cost of insurance and can make an unaffordable policy affordable.
- Stop paying and let the account value carry it. Sometimes a well-funded policy can coast for years. The in-force illustration tells you exactly how many.
- Use a nonforfeiture or paid-up option if the contract provides one, converting the policy to a smaller amount of coverage with no further premiums.
- Check for accelerated death benefit riders. Many universal life contracts include terminal illness or chronic illness acceleration at no extra premium.
- Ask about carrier hardship or premium relief programs before missing a payment. Options narrow considerably once a policy is in grace.
Which of these is right depends on facts specific to you, and this page is education rather than legal, tax or investment advice.
Financial Strength and Where to Confirm It
On April 30, 2026, AM Best affirmed the Financial Strength Rating of A+ (Superior), with a stable outlook, for Sun Life Assurance Company of Canada and for Sun Life and Health Insurance Company (U.S.) of Lansing, Michigan. Independence Life and Annuity Company of Wilmington, Delaware was affirmed at A (Excellent) with a stable outlook. AM Best pointed to balance sheet strength, strong operating performance, a favorable business profile and very strong enterprise risk management.
Note that these are Sun Life entities. If your universal life contract moved to Delaware Life in the 2013 transaction, the relevant rating is that of the current issuing company rather than Sun Life’s. Look up the issuer named on your policy face page. Ratings can be revised.
If you want help sorting out which company holds your contract, Pine Lake offers a free, no-obligation policy review. Send the policy cover page and someone will read it with you.
Frequently Asked Questions
Who services my Sun Life universal life policy now?
It depends on the issuing company printed on your policy. Sun Life sold 100% of the shares of Sun Life Assurance Company of Canada (U.S.) to Delaware Life Holdings on August 2, 2013, and that entity operates as Delaware Life today. Check the issuer name on your face page and confirm the current administrator before mailing any forms.
Can a universal life policy be sold in a life settlement?
Universal life is the policy type most frequently considered in the secondary market, because it is individually owned, has a flexible premium structure, and often becomes expensive to maintain at older ages. That said, eligibility is never guaranteed and depends on age, health, face amount and the premium required to keep the policy in force.
What is an in-force illustration and how do I get one?
It is a projection run by the carrier on your actual policy showing how long it stays in force at different premium levels. Request it from the current administrator as the policy owner. Ask for versions at current charges, at guaranteed maximum charges, and with no further premiums paid, and allow several weeks for delivery.
Does requesting a change of ownership form commit me to selling?
No. Requesting forms, an in-force illustration, or a verification of coverage is a routine policy service request and creates no obligation. Nothing changes until you sign and submit a completed ownership change. Pine Lake does not purchase policies and offers only a free review of your documents.
Is Sun Life still selling individual life insurance in the U.S.?
Sun Life announced in December 2011 that it was closing its domestic U.S. individual life and variable annuity products to new sales, and its U.S. operations were subsequently described by the company as focused on employee benefits and voluntary benefits. Existing contractual guarantees are not affected by a block being closed to new sales.
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Related Reading
- Sell My Sun Life Group Life Policy
- Sell My Sun Life Term Policy
- Sell My John Hancock Universal Life Policy
- Sell My Transamerica Universal Life Policy
- How To Read In Force Illustration
- How Life Settlement Value Is Calculated
- Carrier Change Of Ownership Requirements
- Keep Or Sell Policy Npv
Pine Lake Life Solutions does not purchase life insurance policies and does not provide legal, tax, or investment advice. Information provided is for educational purposes only. Eligibility for any option, including life settlements, is not guaranteed and depends on individual circumstances, policy terms, underwriting, and market conditions. Consult independent legal, tax, or financial professionals before making decisions regarding a life insurance policy.