Sun Life Financial
guaranteed savings products
A COMPARISON
Guaranteed savings products are an important
part of your financial plan. This guide provides
an overview of some of the guaranteed savings
options available to you from Sun Life Financial.
Life’s brighter under the sun
Sun GIC Max, SLF Trust GIC and Insurance GIC* –
comparing the basics
The following table provides an overview of key similarities and differences among the savings products available to you.
Talk to your advisor about these options so you can make the most informed decisions about your plan.
COMPARISON
Daily interest investment
Daily interest is generally
used for short
investment periods. It
has no end date and the
interest rate fluctuates
and is calculated daily.
Market value adjustment
(MVA) is a potential
decrease in the value of
your GIC. It’s only applied
if you withdraw some or
all of your investments
early. The amount of the
MVA depends on market
conditions at the time
of withdrawal.
Product
Insurance GIC*
SunSpectrum AA
(redeemable)
Trust GIC
Sun GIC Max
(non-redeemable)
Trust GIC
SLF Trust GIC
(redeemable)
Account
type
• Non-registered
• TFSA
• RRSP/spousal RRSP
•LIRA/Locked in RSP/
RLSP (SSPIA1)
•SunSpectrum RRIF/
Spousal RRIF
• LIF/RLIF (SSPIA1)
•
•
•
•
•
•
•
•
Investment
options
•Daily interest
investment
• Term: 1-5 years
•Longer terms available
for RRIF, LIF
•Daily interest
investment
•Term: 30-364 days
• Term: 1-5 years
•Longer terms available
for RRIF
•Daily interest
investment
• Term: 30-364 days
• Term: 1-5 years
•Longer terms available
for RRIF
Withdrawals
•Subject to market
value adjustment
(MVA) if cashed
before maturity
•Term investments
may only be
withdrawn at maturity
•Subject to market
value adjustment
(MVA) if cashed
before maturity
•Daily interest
investment may be
withdrawn at any
time without MVA
•An MVA does not
apply on RRIF income
payments, they
are not considered
withdrawals
Beneficiary
designation
Potential
deposit
protection
•Available for all
account types
• Provided by Assuris2
Non-registered
TFSA
RRSP/Spousal RRSP
RRIF/Spousal RRIF
•Daily interest
investment may be
withdrawn at any
time without MVA
•An MVA does not
apply on RRIF income
payments, they
are not considered
withdrawals
Non-registered
TFSA
RRSP/Spousal RRSP
RRIF/Spousal RRIF
•Daily interest
investment may be
withdrawn at any
time without MVA
•An MVA does not
apply on RRIF income
payments, they
are not considered
withdrawals
•RRSP/RRIF/TFSA
– available in all
jurisdictions except
Quebec
•RRSP/RRIF/TFSA
– available in all
jurisdictions except
Quebec
•Non-registered,
not available
•Non-registered,
not available
• Provided by Canada
Deposit Insurance
Corporation (CDIC)2
• Provided by Canada
Deposit Insurance
Corporation (CDIC)2
An Insurance GIC is an accumulation annuity contract issued by the Sun Life Assurance Company of Canada.
SunSpectrum Interest Account.
2
Principal protection may be provided by CDIC/Assuris up to CDIC/Assuris deposit coverage limits. Any term over
five years is not covered by CDIC.
*
1
COMPARISON continued
Product
Insurance GIC*
SunSpectrum AA
(redeemable)
Trust GIC
Sun GIC Max
(non-redeemable)
Trust GIC
SLF Trust GIC
(redeemable)
Potential
creditor
protection
• Y
es – if you have
assigned a preferred
beneficiary.
• Y
es – there may be
creditor protection
for RRSP/RRIFs in
bankruptcy situations
and under some
provincial legislation
for other creditor
situations. Nonregistered GICs do
not have specific
protection against
creditors
• Y
es – there may be
creditor protection
for RRSP/RRIFs in
bankruptcy situations
and under some
provincial legislation
for other creditor
situations. Nonregistered GICs do
not have specific
protection against
creditors
•Higher than
Insurance GIC
and GIC3
•Lower than
Sun GIC Max3
•Provincial insurance
legislation contains
special rules regarding
claims by creditors
when it comes to life
insurance policies and
annuity contracts. For
specific advice about
this, please consult
a lawyer
Interest
rates
•Lower than
Sun GIC Max3
Assuris protects
policyholders in the
event their life insurance
company becomes
insolvent. For more
information on coverage
provided by Assuris, visit
www.assuris.ca or call
1-866-878-1225.
Sun Life Financial
Trust Inc. is a member
of Canada Deposit
Insurance Corporation
(CDIC), a Crown agency
designed to protect the
money you invest with
member institutions.
For more information,
visit www.cdic.ca or call
1-800-461-2342.
Interest rates vary depending on the length of the investment term selected and the rates available in the market
at the time of purchase.
3
ACCOUNT TYPES
TFSA
A tax-free savings account is a flexible, general-purpose account. Contributions aren’t tax-deductible, but withdrawals and
growth within the account, including investment income, are tax-free.
RRSP
A registered retirement savings plan can be a tax-efficient way to save for your retirement. The contributions you make
are tax-deductible. Investments within an RRSP grow without being taxed. At retirement your RRSP is turned into income,
which is taxable.
LIRA
A locked-in retirement account is a locked-in RRSP in nature. It holds locked-in funds transferred from a registered pension
plan for former plan members, former spouse or common law, or surviving spouse/partner.
RRIF
A registered retirement income fund converts non locked-in registered retirement savings into regular income payments
that may be used during your retirement years.
LIF/RLIF
A life income fund converts locked-in retirement savings into regular income payments that may be used during your
retirement years. Restricted Life Income Fund (RLIF) applies to monies under federal jurisdiction only.
Choosing the investment solution that’s right for you
Balancing your rate of return and protecting your hard-earned savings are just two factors that help you
decide which investment products best suit your financial goals. Asking yourself the right questions can
help you determine which investment strategy makes the most sense for you.
What savings do I currently have?
What are my savings goals? Are they short-term or long-term goals?
When do I expect to accomplish these goals?
How much risk am I ready to accept?
How much flexibility do I need?
Do I require income payments?
Questions? We’re here to help.
Talk to your advisor about Sun Life Financial today!
For more information and resources, visit www.sunlife.ca/MyFinancialPlan | Call 1 877 SUN-LIFE (1 877 786-5433)
We’re dedicated to helping you achieve lifetime financial security.
Life’s brighter under the sun
SLF Trust GICs and Sun GIC Max are issued by Sun Life Financial Trust Inc.
Sun Life Financial Trust Inc. and Sun Life Assurance Company of Canada are
members of the Sun Life Financial group of companies.
© Sun Life Assurance Company of Canada, 2014.
810-3534-09-14