Transcript Best of Both Worlds: Sun Life Financial SunDex 100

Equity-Indexed Annuities
What’s 2% more Worth?
…The Answer May Surprise You…
Example
• $50,000 single payment
• No withdrawals
• 3.5% vs. 5.5%
Year
Savings A (3.5%)
Savings B (5.5%)
1
$51,750
$52,750
2
$53,561
$55,651
3
$55,436
$58,712
4
$57,376
$61,941
5
$59,384
$65,348
6
$61,463
$68,942
7
$63,614
$72,734
8
$65,840
$76,734
9
$68,145
$80,955
Hypothetical example illustrates effect of compounding at the stated rates of returns. It does not
represent the performance of any savings vehicle and does not guarantee future results. Taxes in an
annuity are paid when the money is withdrawn. All withdrawals of earnings are subject to ordinary
income tax and withdrawals made prior to age 59 ½, may incur a 10% federal tax penalty.
In other words, this 2% difference
($12,810) could mean:
32 car payments at $400/month!
4 weeks vacation at $3,000/week!
10 years of holiday shopping at $1,200/season!
•Consider how an
Equity-Indexed Annuity
could help.
…Your Money is guaranteed** to grow!
What is an equity-indexed annuity?
Equity-indexed annuities combine aspects of well-known
financial vehicles as well as insurance-related benefits,
including income options and death benefits.
Link to an
equity index
Tax Deferral
Principal
Protection*
Contractual guarantees are based on claims-paying ability of the insurance company you invest with.
*Principal (less withdrawals) is guaranteed if held to the later of the contract term’s end or surrender
charge period.
Link to an Equity-Index
• Interest earnings are linked to positive changes
in the S&P 500 Index.
• When the S&P 500 Index goes up, so do your
interest earnings.*
• If the Index drops, your principal is protected by
your minimum guarantee.
Past equity-indexed changes are no guarantee of future equity-indexed changes. The S&P 500 Index
does not include dividend earnings so neither the S&P 500 Index nor any equity-indexed annuity is
comparable to a direct investment in the equity markets.
*Depending on product design and features, interest earnings may not increase as fast or as much as
the underlying index to which those interest earnings are linked.
How Performance is Calculated
• Indexing Method – The way the increase, if
any, in the account value is calculated.
• Participation Rate – This rate determines how
much of the increase in the S&P 500 Index will
be used to calculate any interest earnings.
Remember, at a minimum, your principal is
guaranteed if you hold the contract to the end of
its term.
It is important to understand these features and how they work together to calculate your interest.
Please read the annuity product fact brochure and Product Manual carefully and speak with your
financial consultant if you have questions about any features of your Sun Life Financial equityindexed annuity.
**Principal is guaranteed if held to the later of the contract term’s end or surrender charge period.
This guarantee is backed by the claims-paying ability the insurance company you invest with.
Principal Protection
The Equity – based Indexed Annuity insurance
company guarantees your principal (less any prior
withdrawals), so while you may benefit from a
portion of the Index’s performance, you have little
downside risk.*
*Guarantee is based on claims-paying ability of the insurer issuing the contract.
Tax deferral
• You don’t pay taxes on your interest earnings
until withdrawn.
• Tax-deferral allows your savings to grow faster.
Annuities have no additional tax deferral benefit when they are purchased as an Individual Retirement
Annuity (IRA) or through some other tax-qualified retirement plan since funds used to purchase the
contract
are already
afforded tax-deferred
status. Annuities
offertax
other
features and benefits that are
Withdrawals
of taxable
amounts
may be subject
to income
and
important
for long-term
goals,
as retirement
planning.
may also be
subject
to a 10%
IRSsuch
penalty
tax if withdrawn
before
age 591⁄2.
Equity-indexed annuities offer:
1. a link to positive changes in the S&P 500 Index, which means
the potential to earn even more
2. principal protection (less any prior withdrawals)*
3. a minimum guarantee, regardless of S&P 500 Index performance
4. tax-deferred growth potential
5. income options to meet your specific needs
6. a death benefit that guarantees your beneficiaries receive 100%
of your annuity’s indexed value
Annuities have no additional tax deferral benefit when they are purchased as an Individual Retirement
Annuity (IRA) or through some other tax-qualified retirement plan since funds used to purchase the
contract are already afforded tax-deferred status. However, annuities offer other features and
benefits, such as access to money, income options for retirement, and a death benefit.
*There will be a minimum guarantee on your premium payment. Surrender value will not be less than
required by the state in which the contract is issued. Principal is guaranteed if held to the later of the
contract term’s end or surrender charge period. Guarantee is based on claims-paying ability of the
insurance company you invest with.
Financial Strength Is Important!
Our Partnerships With Various Insurance
Companies
Consistently Receive Top-Ratings With The
Industry’s
Most Respected Independent Rating
Companies:
A.M. Best & Standard and Poor
1
Outlook stable
* Rating also applies to counterparty credit risk