<PAGE>
Registration No. 333-13087
As filed with the Securities and Exchange Commission on February 16, 1999
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Post-Effective Amendment No. 3
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933 OF
SECURITIES OF UNIT INVESTMENT TRUSTS REGISTERED ON FORM
N-8B-2
A. Exact name of trust: Sun Life of Canada (U.S.) Variable Account G
B. Name of depositor: Sun Life Assurance Company of Canada (U.S.)
C. Complete address of depositor's principal executive offices:
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
D. Name and complete address of agent for service:
Ellen B. King
Secretary
Sun Life Assurance Company of Canada (U.S.)
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
Copies to:
Josephine Cicchetti, Esq.
Jorden Burt Boros Cicchetti Berenson & Johnson LLP
Suite 400 East
1025 Thomas Jefferson St., N.W.
Washington, D.C. 20007-0805
It is proposed that this filing will become effective (check
appropriate box)
_ immediately upon filing pursuant to paragraph (b)
_ on (date) pursuant to paragraph (b)
X 60 days after filing pursuant to paragraph (a)(1)
_ on (date) pursuant to paragraph (a)(1) of Rule 485.
E. Title of securities being registered:
Flexible Premium Variable Universal Life Insurance Policies.
F. Approximate date of proposed public offering:
As soon as practicable after the effective date of this
registration statement.
<PAGE>
RECONCILIATION AND TIE BETWEEN
FORM N-8B-2 AND PROSPECTUS
<TABLE>
<CAPTION>
ITEM NO. OF
FORM N-8B-2 CAPTION IN PROSPECTUS
- ----------- ---------------------
<S> <C>
1 Cover Page
The Variable Account
2 Cover Page
About Who We Are
3 Cover Page
About Who We Are
4 Distribution of Policy.
5 The Variable Account
6 Not Applicable
7 Not Applicable
8 Other Information
Financial Statements
9 Legal Proceedings
10 Summary of Policy
The Variable Account
About the Policy
Premium Payments
Death Benefit
Account Value
Accessing Your Account Value
Cash Surrender Value Payable Upon Maturity
Charges, Deductions and Refunds
Other Policy Provisions
Addition, Deletion or Substitution of Investments
Modification
Voting Rights
Federal Tax Considerations
11 Summary of Policy
The Variable Account
The Funds
12 Summary of Policy
The Funds
13 Summary of Policy
The Funds
Fees and Expenses of the Funds
About the Policy
Charges, Deductions and Refunds
Distribution of Policy
14 About the Policy
Application and Issuance
15 About the Policy
Application and Issuance
Free Look Period
Premium Payments
Account Value
Transfer Privileges
16 About the Policy
Premium Payments
Account Value
Transfer Privileges
Accessing Your Account Value
17 About the Policy
Free Look Period
<PAGE>
Accessing Your Policy's Account Value
18 The Variable Account
About the Policy
Account Value
19 About the Policy
Other Policy Provisions
Reports to Policy owners
20 Not Applicable
21 About the Policy
Death Benefit
Policy Proceeds
Account Value
Account Value in the Loan Account
Accessing Your Account Value
Policy Loans
22 Not Applicable
23 Our Directors and Executive Officers
24 Not Applicable
25 About Who We Are
26 Not Applicable
27 About Who We Are
28 About Who We Are
Our Directors and Executive Officers
29 About Who We Are
30 Not Applicable
31 Not Applicable
32 Not Applicable
33 Not Applicable
34 Not Applicable
35 Distribution of Policy
36 Not Applicable
37 Not Applicable
38 Distribution of Policy
39 Distribution of Policy
40 Not Applicable
41 Distribution of Policy
42 Not Applicable
43 Not Applicable
44 About the Policy
Application and Issuance
Free Look Period
Premium Payments
Account Value
Transfer Privileges
Charges, Deductions and Refunds
Reduction of Charges
45 Not Applicable
46 About the Policy
Application and Issuance
Free Look Period
Premium Payments
Account Value
Transfer Privileges
47 Not Applicable
48 About Who We Are
The Variable Account
49 Not Applicable
50 The Variable Account
51 Cover Page
About the Policy
Premium Payments
<PAGE>
Death Benefit
Account Value
Charges, Deductions and Refunds
Accessing Your Account Value
Other Policy Provisions
52 The Variable Account
About the Policy
Other Policy Provisions
Addition, Deletion or Substitution of Investments
Modification
53 Federal Tax Considerations
Our Tax Status
54 Not Applicable
55 Not Applicable
56 Not Applicable
57 Not Applicable
58 Not Applicable
59 Other Information
Financial Statements
</TABLE>
<PAGE>
PART I
<PAGE>
[LOGO]
PROSPECTUS
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
(800) 432-1102 Ext. 2438
SUN LIFE CORPORATE VUL-SM-
A FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY
This prospectus describes a variable universal life insurance policy (the
"POLICY") issued by Sun Life Assurance Company of Canada (U.S.) ("WE" or "US")
through Sun Life of Canada (U.S.) Variable Account G (the "VARIABLE ACCOUNT"),
one of our separate accounts. The Policy allows "YOU," the policyowner, within
certain limits, to:
- Choose the life insurance coverage you need and increase or decrease
coverage as your insurance needs change;
- Choose the amount and timing of premium payments;
- Allocate net premium payments among 29 investment options and transfer
amounts among available investment options as your investment objectives
change; and
- Access your Policy's Account Value through policy loans and partial
surrenders or a full surrender.
This prospectus contains important information you should understand before
purchasing a Policy. You should read this prospectus carefully and keep it for
future reference.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED THESE SECURITIES OR DETERMINED THAT THIS PROSPECTUS IS
ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
, 1999
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
TOPIC PAGE
------------------------------------------------------------ ----
<S> <C>
Summary of Policy........................................... 1
About Who We Are............................................ 4
The Variable Account........................................ 4
The Funds................................................... 5
Fees and Expenses of the Funds............................ 6
Potential Conflicts....................................... 7
About the Policy............................................ 7
Application and Issuance.................................. 7
Death Benefit Compliance Test........................... 8
Initial Premium Payment................................. 8
Effective Date of Coverage.............................. 8
Insurable Interest Requirement.......................... 8
Free Look Period.......................................... 9
Premium Payments.......................................... 9
General Limitations..................................... 9
Guideline Premium Test Limitations...................... 10
Planned Periodic Premiums............................... 10
Allocation of Net Premium............................... 10
Modified Endowment Contracts............................ 10
Additional Protection Benefit Rider (APB Rider)........... 11
Death Benefit............................................. 11
Policy Proceeds......................................... 11
Death Benefit Options................................... 12
Changes in the Death Benefit Option..................... 12
APB Rider Death Benefit................................. 13
Minimum Face Amount..................................... 13
Changes in Face Amount.................................. 13
Increases in Face Amount................................ 13
Decreases in Face Amount................................ 13
Account Value............................................. 14
Account Value in the Sub-Accounts....................... 14
Net Investment Factor................................... 15
Account Value in the Loan Account....................... 16
Insufficient Value...................................... 16
Grace Period............................................ 16
Splitting Units......................................... 16
Transfer Privileges....................................... 16
Accessing Your Account Value.............................. 17
Surrender............................................... 17
Partial Surrenders...................................... 17
</TABLE>
II SUN LIFE CORPORATE VUL-SM-
<PAGE>
<TABLE>
<CAPTION>
TOPIC PAGE
------------------------------------------------------------ ----
<S> <C>
Policy Loans............................................ 18
Deferral of Payment..................................... 18
Cash Surrender Value Payable upon Maturity................ 19
Charges, Deductions and Refunds........................... 19
Expense Charges Applied to Premium...................... 19
Sales Load Refund at Surrender.......................... 19
Mortality and Expense Risk Charge....................... 19
Monthly Expense Charge.................................. 20
Monthly Cost of Insurance............................... 20
Reduction of Charges.................................... 20
Termination of Policy..................................... 20
Other Policy Provisions................................... 21
Alteration.............................................. 21
Assignments............................................. 21
Rights of Owner......................................... 21
Rights of Beneficiary................................... 21
Reports to Policyowners................................. 21
Illustrations........................................... 22
Conversion.............................................. 22
Misstatement of Age or Sex.............................. 22
Suicide................................................. 22
Incontestability........................................ 22
Addition, Deletion or Substitution of Investments....... 22
Nonparticipating........................................ 23
Modification............................................ 23
Entire Contract......................................... 23
Performance Information..................................... 23
Voting Rights............................................... 25
Distribution of Policy...................................... 25
Federal Tax Considerations.................................. 26
Our Tax Status............................................ 26
Taxation of Policy Proceeds............................... 26
Our Directors and Executive Officers........................ 29
Other Information........................................... 32
State Regulation.......................................... 32
Legal Proceedings......................................... 33
Experts................................................... 33
Accountants............................................... 33
Registration Statements................................... 33
Year 2000 Compliance...................................... 33
Financial Statements........................................ 34
</TABLE>
III SUN LIFE CORPORATE VUL-SM-
<PAGE>
<TABLE>
<CAPTION>
TOPIC PAGE
------------------------------------------------------------ ----
<S> <C>
Appendix A--Glossary of Policy Terms........................ A-1
Appendix B--Fees and Expenses of the Funds.................. B-1
Appendix C--Hypothetical Illustrations of Cash Surrender
Values, Account Values and Death Benefits................. C-1
</TABLE>
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION WHERE
THE OFFERING WOULD NOT BE LAWFUL. YOU SHOULD RELY ONLY ON THE INFORMATION
CONTAINED IN THIS PROSPECTUS OR IN THE PROSPECTUS OR STATEMENT OF ADDITIONAL
INFORMATION OF THE UNDERLYING MUTUAL FUNDS. WE HAVE NOT AUTHORIZED ANYONE TO
PROVIDE YOU WITH INFORMATION THAT IS DIFFERENT.
IV SUN LIFE CORPORATE VUL-SM-
<PAGE>
THIS SUMMARY IS SUMMARY OF POLICY
QUALIFIED BY USE OF POLICY
REFERENCE TO THIS The Policy is designed primarily to provide
PROSPECTUS IN ITS corporations and other entities life insurance coverage
ENTIRETY. on employees or other persons in whose lives they have
an insurable interest, and may be used in connection
Appendix A contains with various types of non- tax-qualified executive
a glossary of policy benefit plans.
terms used in this THE VARIABLE ACCOUNT
prospectus.
- We have established a separate account, the Variable
Account, to fund the variable insurance benefits under
the Policy.
- The assets of the Variable Account are insulated from
the claims of our general creditors.
- The Variable Account is divided into 29 Sub-Accounts,
each of which invests exclusively in shares of a
corresponding mutual fund.
INVESTMENT OPTIONS
- You may allocate your net premium payments among the 29
Sub-Accounts.
- You may transfer amounts from one Sub-Account to
another.
FEES AND EXPENSES OF THE UNDERLYING FUNDS
You will indirectly bear the costs of investment
management fees and other expenses paid from the assets
of the underlying funds you select.
FREE LOOK PERIOD
You may return your Policy to us for any reason and
receive a refund within the later of 45 days after you
sign a policy application or the 20-day period (or a
longer period if required by applicable state law)
beginning when you receive your Policy.
PREMIUM PAYMENTS
- You must make an initial minimum premium payment, the
amount of which will vary based on the amount of life
insurance coverage you request and other factors,
including the insured's age, sex and health.
- Thereafter, you may choose the amount and timing of
premium payments, within certain limits.
- We allocate your net premium payments among the
Policy's investment options in accordance with your
instructions.
ADDITIONAL PROTECTION BENEFIT RIDER
- You may use this rider to obtain additional life
insurance coverage on the insured.
- We deduct the rider's cost from your Account Value on a
monthly basis.
1 SUN LIFE CORPORATE VUL-SM-
<PAGE>
DEATH BENEFIT COMPLIANCE TEST
- To be eligible to receive favorable tax treatment under
applicable federal tax law, your Policy must be subject
to one of the following legal standards--
- the Guideline Premium Test, or
- the Cash Value Accumulation Test
- You choose the applicable test, but once made, you may
not change your election.
DEATH BENEFIT
- If the Guideline Premium Test applies, you have a
choice of two death benefit options--
SPECIFIED FACE - the SPECIFIED FACE AMOUNT (Option A), or
AMOUNT is the amount - the Specified Face Amount plus your Account Value
of life insurance (Option B).
coverage you - You may change your death benefit option on any Policy
request, exclusive Anniversary, subject to our underwriting rules then in
of any coverage effect.
added by rider.
- If the Cash Value Accumulation Test applies, you will
be deemed to have elected Option A, which may not be
changed.
- After the first Policy Year, you may--
- increase the Specified Face Amount and, if
applicable, the APB Rider Face Amount, subject to
satisfactory evidence of the insured's
insurability; or
- decrease the Specified Face Amount and, if
applicable, the APB Rider Face Amount, provided
that neither the Specified Face Amount nor the
Total Face Amount after the decrease may be less
than certain minimum amounts, as specified in your
Policy.
ACCOUNT VALUE
- Your Account Value will reflect--
- the premiums you pay;
- the investment performance of the Sub-Accounts you
select;
- any loans, loan repayments and partial surrenders;
and
- the charges we deduct under the Policy.
2 SUN LIFE CORPORATE VUL-SM-
<PAGE>
ACCESSING YOUR ACCOUNT VALUE
CASH SURRENDER VALUE - You may borrow from us using your Account Value as
is your Account collateral.
Value, less any - You may surrender your Policy for its CASH SURRENDER
outstanding Policy VALUE.
Debt, plus any sales - You may make a partial surrender of only a portion of
load refund due at the Cash Surrender Value once per year after your
surrender. Policy has been in force for one year.
A partial surrender POLICY CHARGES, DEDUCTIONS AND REFUNDS
may cause a decrease - EXPENSE CHARGES APPLIED TO PREMIUM--We deduct from
in Total Face Amount each premium payment--
if the amount of the - a charge to cover applicable premium taxes, which
death benefit minus varies by state but is guaranteed not to exceed 4%
your Account Value for all states except Kentucky for which the
after the partial guaranteed maximum rate is 9%;
surrender exceeds - a 1.25% charge to cover our federal tax
the amount of the obligations with respect to the Policy; and
death benefit minus - a 8.75% sales load up to a specified amount of
your Account Value premium and a 2.25% sales load on amount in excess
before the partial of that target amount for premiums paid during the
surrender. first seven Policy Years, after which there is no
sales load charge.
- SALES LOAD REFUND AT SURRENDER--If you surrender your
Policy during the first three Policy Years, we will
refund a portion of the sales load charged against
premium payments made during the Policy Year in which
you surrendered your Policy.
- MORTALITY AND EXPENSE RISK CHARGES--We deduct a daily
charge from your Account Value for the mortality and
expense risks we assume with respect to the Policy. The
guaranteed maximum daily rate is equivalent to an
annual rate of 0.90% of assets. Our current daily rates
are equivalent to annual rates of--
- 0.60% for Policy Years 1 through 10;
- 0.20% for Policy Years 11 through 20; and
- 0.10% thereafter.
- MONTHLY DEDUCTIONS--We deduct a charge each month from
your Account Value to cover administrative expenses
relating to your Policy, which is guaranteed not to
exceed $13.75 per month. Our current charges are $13.75
per month for the first policy year and $7.50 per month
thereafter.
- MONTHLY COST OF INSURANCE--We deduct a monthly charge
from your Account Value to cover our anticipated costs
for providing your insurance coverage.
- REDUCTION OF CHARGES--We reserve the right to reduce
any of our charges and deductions with respect to sales
of the Policy involving certain group arrangements
based on our expectations of cost savings and our
claims experience.
WHAT IF CHARGES AND DEDUCTIONS EXCEED ACCOUNT VALUE?
Your Policy may terminate if your Account Value at
the beginning of any Policy Month is insufficient to pay
all charges and deductions then due. When
3 SUN LIFE CORPORATE VUL-SM-
<PAGE>
and if this occurs, we will send you written notice and
allow you a 61 day grace period. If you do not make a
premium payment within the grace period, sufficient to
cover all accrued and unpaid charges and deductions, your
Policy will terminate at the end of the grace period
without further notice.
FEDERAL TAX CONSIDERATIONS
Your purchase of, and transactions under, your Policy
may have tax consequences that you should consider before
purchasing a Policy. You may wish to consult a tax
adviser. In general, the beneficiary will receive Policy
Proceeds without there being taxable income. Increases in
Account Value will not be taxable as earned, although
there may be income tax due on a full or partial
surrender of your Policy.
We are an indirect, ABOUT WHO WE ARE
wholly-owned Sun Life Assurance Company of Canada (U.S.) is a
subsidiary of Sun stock life insurance company incorporated under the laws
Life Assurance of Delaware on January 12, 1970. We are authorized to do
Company of Canada, a business in 48 states, the District of Columbia and
Canadian mutual life Puerto Rico, and anticipate that we will eventually be
insurance company. authorized to do business in all states except New York.
We issue individual and group life insurance policies
and annuity contracts.
We are an indirect, wholly-owned subsidiary of Sun
Life Assurance Company of Canada, a Canadian mutual life
insurance company located at 150 King Street West,
Toronto, Ontario, Canada.
THE VARIABLE ACCOUNT
Sun Life of Canada (U.S.) Variable Account G is one
of our separate accounts established in accordance with
Delaware law on July 25, 1996. The Variable Account may
also be used to fund benefits payable under other life
insurance policies we issue.
We own the assets of the Variable Account. The
income, gains or losses, realized or unrealized, from
assets allocated to the Variable Account are credited to
or charged against the Variable Account without regard to
our other income, gains or losses.
The assets of the We will at all times maintain assets in the Variable
Variable Account are Account with a total market value at least equal to
insulated from our the reserves and other liabilities relating to the
general liabili- variable benefits under all policies participating in
ties. the Variable Account. Those assets may not be charged
with our liabilities from our other business. The
obligations under the Policy are, however, our general
corporate obligations.
The Variable Account The Variable Account is registered with the
is registered with Securities and Exchange Commission under the
the SEC. Investment Company Act of 1940 as a unit investment
trust. That registration does not involve any
supervision by the SEC of the management or investment
practices or policies of the Variable Account.
4 SUN LIFE CORPORATE VUL-SM-
<PAGE>
The Variable Account may be deregistered if
registration is no longer required; however, we may
continue, at our election, to operate the Variable
Account as a unit investment trust or other form of
investment company, subject to any necessary vote by
those having voting rights. In the event of any change in
the registration status of the Variable Account, we may
amend the Policy to reflect the change and take such
other action as may be necessary and appropriate to
effect the change.
The Variable Account The Variable Account is divided into 29
has 29 Sub-Accounts. Sub-Accounts. Each Sub-Account invests exclusively
Each Sub-Account in shares of a corresponding investment portfolio of a
invests exclusively registered investment company (commonly known as a
in shares of a mutual fund). We may in the future add new or delete
corresponding mutual existing Sub-Accounts. The income, gains or losses,
fund. realized or unrealized, from assets allocated to each
Sub-Account are credited to or charged against that
Sub-Account without regard to the other income, gains or
losses of the other Sub-Accounts.
THE FUNDS
The Fund The Policy currently offers 29 mutual fund options,
Prospectuses which which are briefly described below. More
accompany this comprehensive information, including a discussion of
prospectus contain potential risks, is found in the current prospectuses
more information for the Funds which accompany this prospectus (the "Fund
about the funds. Prospectuses"). You should read the Fund Prospectuses
before investing.
DREYFUS VARIABLE INVESTMENT FUND--is advised by the
Dreyfus Corporation. The available investment portfolios
are--
- Capital Appreciation Portfolio
- Growth and Income Portfolio
- Quality Bond Portfolio
- Small Cap Portfolio
FIDELITY VARIABLE INSURANCE PRODUCTS FUND--is advised by
Fidelity Management & Research Company ("FMR");
affiliates of FMR may assist it in the selection of
investments for the Portfolios. The available investment
portfolios are--
- VIP Equity-Income Portfolio
- VIP Growth Portfolio
- VIP High Income Portfolio
- VIP Money Market Portfolio
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II--is advised
by FMR; affiliates of FMR may assist it in the selection
of investments for the Portfolios. The available
investment portfolios are--
- VIP II Asset Manager: Growth Portfolio
- VIP II Contrafund Portfolio
- VIP II Index 500 Portfolio
- VIP II Investment Grade Bond Portfolio
5 SUN LIFE CORPORATE VUL-SM-
<PAGE>
J.P. MORGAN SERIES TRUST II--is advised by J.P. Morgan
Investment Management Inc. The available investment
portfolios are--
- J.P. Morgan Bond Portfolio
- J.P. Morgan Equity Portfolio
- J.P. Morgan Small Company Portfolio
MFS/SUN LIFE SERIES TRUST--is advised by Massachusetts
Financial Services, Inc. ("MFS"), one of our affiliates.
MFS has retained Foreign & Colonial Management Limited
("FCM"), and Foreign & Colonial Emerging Markets Limited,
a subsidiary of FCM, as managers to the World Growth
Series. The available investment portfolios are--
- Capital Appreciation Series
- Conservative Growth Series
- Emerging Growth Series
- Government Securities Series
- Research Series
- Total Return Series
- Utilities Series
- World Growth Series
NEUBERGERBERMAN ADVISERS MANAGEMENT TRUST--The investment
portfolios of the Trust invest all of their net
investable assets in a corresponding series of Advisers
Managers Trust, an open-end management investment company
advised by NeubergerBerman Management Inc. Each of these
series invests in accordance with an investment
objective, policies, and limitations identical to those
of its corresponding portfolio. The available investment
portfolios are--
- Limited Maturity Bond Portfolio
- Mid-Cap Growth Portfolio
- Partners Portfolio
T. ROWE PRICE EQUITY SERIES, INC.--is advised by T. Rowe
Price Associates, Inc. The available investment
portfolios are--
- Equity Income Portfolio
- New America Growth Portfolio
TEMPLETON VARIABLE PRODUCTS SERIES FUND--is advised by
Templeton Investment Counsel, Inc. The available
investment portfolios are--
- Templeton Stock Fund: Class 1
FEES AND EXPENSES OF THE FUNDS
Fund shares are purchased at net asset value, which
reflects the deduction of investment management fees and
other expenses. The management fees are charged by each
Fund's investment adviser for managing the Fund and
selecting its portfolio securities. Other expenses can
include such items as interest
6 SUN LIFE CORPORATE VUL-SM-
<PAGE>
expense on loans and contracts with transfer agents,
custodians, and other companies that provide services to
the Fund.
Because they are assessed at the fund level, you will
indirectly bear the fees and expenses of the Funds you
select. The table shown in Appendix B illustrates the
fees and expenses paid by the Funds as a percentage of
average net assets. These fees and expenses are more
fully described in the Fund Prospectuses which accompany
this prospectus. The data regarding the Funds' fees and
expenses were provided by the Funds and we have not
independently verified it.
POTENTIAL CONFLICTS
We, as well as other affiliated and unaffiliated
insurance companies, may also purchase shares of the
Funds on behalf of other separate accounts used to fund
variable benefits payable under other variable life
insurance and variable annuity contracts. As a result, it
is possible, though we do not anticipate, that a material
conflict may arise between the interests of our
policyowners with respect to the Variable Account and
those of other variable contractowners with respect to
the other separate accounts that participate in the
Funds. The Funds have agreed to monitor themselves for
the existence of any material conflict between the
interests of variable contractowners. In the event of
such a conflict involving a Fund, we will take any steps
necessary to remedy the conflict including withdrawing
the assets of the Variable Account from the Fund. If the
Variable Account or another separate account withdraws
its assets from a Fund for this reason, the Fund may be
forced to sell its portfolio securities at
disadvantageous prices which would negatively affect the
investment performance of the corresponding Sub-Account.
ABOUT THE POLICY
This prospectus describes the standard features of
the Policy. Your Policy, as issued, may differ in some
respects due to legal requirements of the state where
your Policy is issued.
APPLICATION AND ISSUANCE
To apply for a Policy, you must submit an application
to our Principal Office. We will then follow underwriting
procedures designed to determine the insurability of the
proposed insured. We offer the Policy on a regular (or
medical) underwriting, simplified underwriting, or
guaranteed issue basis. The proposed insured generally
must be less than 81 years old for a Policy to be issued
on a medical underwriting basis, less than 76 years old
for issuance on a simplified underwriting basis, and less
than 71 years old for issuance on a guaranteed issue
basis. For Policies underwritten on a medical or
simplified basis, we may require that the proposed
insured undergo one or more medical examinations and that
you provide us with such additional information as we may
deem necessary, before an application is approved. We
will issue Policies on a guaranteed basis with respect to
certain groups of insureds. Policies issued on a
guaranteed basis must be pre-approved based on
information you provide to us on a master application and
on certain other underwriting requirements which all
members of a proposed group of insureds must meet.
Proposed insureds must be acceptable risks based on our
underwriting limits and standards. We will not
7 SUN LIFE CORPORATE VUL-SM-
<PAGE>
issue a Policy until the underwriting process has been
completed to our satisfaction. In addition, we reserve
the right to reject any application that does not meet
our underwriting requirements or to "rate" an insured as
a substandard risk, which will result in increased
Monthly Cost of Insurance charges.
There are two DEATH BENEFIT COMPLIANCE TEST. Your Policy must, at
tax-law compliance all times, satisfy one of two legal standards for it
tests. You select to qualify as life insurance and thus be entitled to
which applies to receive favorable tax treatment under applicable federal
your Policy. tax law. We will refer to these standards as the "Cash
Value Accumulation Test" and the "Guideline Premium
Test." Under both tests, the Death Benefit must
effectively always equal or exceed your Account Value
multiplied by a certain percentage (the "Death Benefit
Percentage"). The Death Benefit Percentages for the
Guideline Premium Test vary by age, whereas those for
the Cash Value Accumulation Test vary by age and sex.
The Death Benefit Percentages for the Cash Value
Accumulation Test, in general, are greater than those
for the Guideline Premium Test. The Guideline Premium
Test imposes limits on the amount of premium you may pay
under your Policy, whereas the Cash Value Accumulation
Test does not.
You must specify in your policy application which of
these tests will apply to your Policy. You may not change
your selection once your Policy has been issued. In
general, if your primary objective is maximum
accumulation of Account Value during the initial Policy
Years, then Cash Value Accumulation Test would be the
more appropriate choice. If your primary objective is the
most economically efficient method of obtaining a
specified amount of coverage, then the Guideline Premium
Test is generally more appropriate. Because your choice
of tests depends on complex factors and may not be
changed, you should consult with a qualified tax adviser
before deciding.
INITIAL PREMIUM PAYMENT. A Minimum Premium, as
specified in your Policy, will be due and payable as of
the Issue Date. The Minimum Premium will vary based on
the insured's Class, Issue Age, and sex and on the amount
of insurance coverage. Pending approval of your
application, we will allocate any premium payments you
make to our General Account. If your application is not
approved, we will promptly return your premium payments.
EFFECTIVE DATE OF COVERAGE. Upon approval of your
application, we will issue to you a Policy on the life of
the insured which will set forth your rights and
obligations. The Effective Date of Coverage for the
Policy will be the latest of--
The ISSUE DATE is - the ISSUE DATE,
the date specified - the date we approve the application for your
as such in your Policy, or
Policy, from which - the date you pay a premium equal to or in excess
Policy of the Minimum Premium.
Anniversaries,
Policy Years and
Policy Months are
measured.
INSURABLE INTEREST REQUIREMENT. You must have an
insurable interest in the life of the insured up to the
full amount of insurance coverage. Otherwise, your Policy
will not qualify as life insurance under applicable state
insurance and federal tax law. You should consult with a
qualified adviser when determining the amount of coverage
and before taking any action to increase the amount of
8 SUN LIFE CORPORATE VUL-SM-
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existing coverage to ensure that you have an insurable
interest for the full amount of coverage.
FREE LOOK PERIOD
If you are not satisfied with your Policy, you may
return it by delivering or mailing it to our Principal
Office or to the sales representative through whom you
purchased the Policy within 20 days from the date of
receipt (unless a different period is applicable under
state law) or within 45 days after your application is
signed, whichever period ends later (the "Free Look
Period").
If you return your Policy during the Free Look
Period, your Policy will be deemed void and you will
receive a refund equal to the sum of--
- the difference between any premium payments made,
including fees and charges, and the amounts
allocated to the Variable Account;
- the value of the amounts allocated to the Variable
Account on the date the cancellation request is
received by us or the sales representative through
whom you purchased the Policy, and
- any fees or charges imposed on amounts allocated to
the Variable Account.
If required by applicable state insurance law,
however, you will receive instead a refund equal to the
sum of all premium payments made, without regard to the
investment experience of the Variable Account. Unless you
are entitled to receive a full refund of premium, you
bear all of the investment risks with respect to the
amount of any net premiums allocated to the Variable
Account during the Free Look Period with respect to your
Policy.
If you are entitled under applicable state law to
receive a full refund during the Free Look Period, we
will allocate net premium payments to the VIP Money
Market Portfolio Sub-Account during that period beginning
on the Investment Start Date. Upon expiration of the
Free-Look Period, we will reallocate your Account Value
and allocate future net premium payments in accordance
with your instructions.
PREMIUM PAYMENTS
The frequency and In general, you may choose the frequency and amount
amount of your of any additional premium payments subject to the
premium payments may limits described below. You will be required, however,
have tax to make an initial minimum premium payment, as described
consequences. above. All premium payments should be made payable to
"Sun Life Assurance Company of Canada (U.S.)" and mailed
to our Principal Office.
GENERAL LIMITATIONS. We reserve the right to limit
the number of premium payments we accept on an annual
basis. No premium payment may be less than $100 without
our consent, although we will accept a smaller premium
payment if it is necessary to keep your Policy in force.
We reserve the right not to accept a premium payment that
causes the Death Benefit to increase by an amount that
exceeds the premium received and we may require
satisfactory evidence of insurability before we accept
such a premium.
9 SUN LIFE CORPORATE VUL-SM-
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GUIDELINE PREMIUM TEST LIMITATIONS. The Guideline
Premium Test limits the amount of premium you may pay per
year. We will not accept premium payments that would, in
our opinion, exceed these limits, if you have chosen this
test as the applicable Death Benefit Compliance Test. If
you make a premium payment in excess of these limits, we
will accept only that portion of the premium within those
limits and refund the remainder to you. We will inform
you of the applicable maximum premium limitations for the
coming years in our annual report to you. In contrast,
the Cash Value Accumulation Test does not impose any
additional limitations on the amount of premium you may
pay.
PLANNED PERIODIC PREMIUMS. While you are not
required to make premium payments according to a fixed
schedule, you may select a planned periodic premium
schedule and corresponding billing period, subject to our
premium limits. In general, the billing period must be
annual or semiannual. We will send reminder notices for
the planned periodic premium at the beginning of each
billing period unless reminder notices have been
suspended as described below. You are not required,
however, to pay the planned periodic premium; you may
increase or decrease premium payments, subject to our
limits, and you may skip a planned payment or make
unscheduled payments. You may change your planned payment
schedule or the billing period, subject to our approval.
Depending on the investment performance of the
Sub-Accounts you select, the planned periodic premium may
not be sufficient to keep your Policy in force, and you
may need to change your planned payment schedule or make
additional payments in order to prevent termination of
your Policy. We reserve the right to suspend reminder
notices if premiums are not being paid (except for
notices in connection with the grace period). We will
notify you prior to suspending reminder notices. We will
also suspend reminder notices at your written request.
NET PREMIUM is the ALLOCATION OF NET PREMIUM. We will allocate NET
amount you pay as PREMIUM among the Sub-Accounts in accordance with
premium minus your allocation instructions, except during the Free
Expense Charges Look Period as described above. You will be required to
Applied to Premium. specify initial allocation percentages in your policy
application. You must allocate at least five percent of
Net Premium to each Sub-Account you select. All
percentages must be in whole numbers.
You may change the allocation of future Net Premium
at any time by telephoning or writing to our Service
Center. Telephone requests will be honored only if we
have a properly completed telephone authorization form
for you on file. We, our affiliates and the
representative from whom you purchased your Policy will
not be responsible for losses resulting from acting upon
telephone requests reasonably believed to be genuine. We
will use reasonable procedures to confirm that
instructions communicated by telephone are genuine. You
will be required, for example, to identify yourself by
name and a personal identification number. In addition,
telephone requests may be recorded. An allocation change
will be effective as of the date our Service Center
receives your request for that change.
MODIFIED ENDOWMENT CONTRACTS. Less favorable federal
tax rules apply to life insurance policies that are
defined as "Modified Endowment Contracts." One way your
Policy could become a Modified Endowment Contract is if
you pay premiums in excess of applicable tax-law
limitations.
10 SUN LIFE CORPORATE VUL-SM-
<PAGE>
We will notify you if we receive a premium that
would, in our opinion, cause your Policy to become a
Modified Endowment Contract. We will not credit the
premium unless we receive specific instructions from you
to do so. If we have not received instructions within 24
hours of the date we sent notice to you, we will
immediately return the premium.
ADDITIONAL PROTECTION BENEFIT RIDER (APB RIDER)
The Policy may be issued with an APB Rider. This
rider provides life insurance coverage, annually
renewable to Attained Age 100, on the life of the insured
equal to the amount of the APB Rider Death Benefit. You
will be required to specify the initial APB Rider Face
Amount in your policy application.
The cost of the APB Rider will be included in the
Monthly Cost of Insurance deduction. The applicable
guaranteed maximum Monthly Cost of Insurance Rates for
the APB Rider Death Benefit exceed those for the Base
Death Benefit.
TARGET PREMIUM is Two otherwise identical Policies with the same Total
the amount of Face Amount will have different TARGET PREMIUMS
premium specified as depending on how much of the TOTAL FACE AMOUNT is
such in your Pol- attributable to the Specified Face Amount versus the APB
icy, used to Rider Face Amount. Target Premium will be lower for the
determine our sales Policy which has the greater APB Rider Face Amount,
load charges. which will result in lower sales load deductions for
TOTAL FACE AMOUNT is that Policy.
the sum of the If you convert your Policy to a flexible premium
Specified Face universal life insurance policy, any related APB
Amount and the APB Rider will terminate automatically. An APB Rider will
Rider Face Amount. also terminate ON THE EARLIEST OF--
- our receipt of your written request for
termination,
- the lapse of your Policy because of insufficient
value, or
- the termination of the Policy.
DEATH BENEFIT
POLICY PROCEEDS. If your Policy is in force at the
time of the insured's death and we have received Due
Proof of the insured's death, we will pay your designated
beneficiary an amount equal to--
- the amount of the Base Death Benefit, MINUS
- the amount of any outstanding Policy Debt, PLUS
- the amount of any APB Rider Death Benefit, PLUS
- the amount of any other supplemental benefits.
The Amount of the Base Death Benefit depends upon the
death benefit option in effect at the time of the
insured's death.
11 SUN LIFE CORPORATE VUL-SM-
<PAGE>
DEATH BENEFIT OPTIONS. The Policy has two death
benefit options. You will be required to select one of
them in your policy application.
OPTION A--SPECIFIED FACE AMOUNT. Under this option,
the Base Death Benefit is THE GREATER OF--
- your Policy's Specified Face Amount, or
- the Account Value multiplied by the applicable
Death Benefit Percentage.
OPTION B--SPECIFIED FACE AMOUNT PLUS ACCOUNT
VALUE. Under this option, the Base Death Benefit is THE
GREATER OF--
- the Specified Face Amount plus the Account Value,
or
- the Account Value multiplied by the applicable
Death Benefit Percentage.
Option B is not available, however, and you will be
deemed to have elected Option A, if you have chosen the
Cash Value Accumulation Test as the applicable Death
Benefit Compliance Test.
At any time the Base Death Benefit is defined as the
Account Value multiplied by the applicable Death Benefit
Percentage, and the Base Death Benefit minus Account
Value exceeds your Policy's Total Face Amount, we reserve
the right to distribute Account Value to you as a partial
surrender to the extent necessary so that the Base Death
Benefit minus Account Value will equal the Total Face
Amount. You will not have the option of providing
evidence of insurability to maintain a higher level of
Base Death Benefit.
We will notify you in writing if we exercise our
right to distribute Account Value to you as a partial
surrender as described above. You may allocate the
partial surrender among the Sub-Accounts of the Variable
Account. If you do not specify the allocation, then we
will allocate the partial surrender among the
Sub-Accounts in the same proportion that the Account
Value of each Sub-Account bears to the aggregate Account
Value of all Sub-Accounts on the date of partial
surrender.
CHANGES IN THE DEATH BENEFIT OPTION. If you have
chosen the Guideline Premium Test as the applicable Death
Benefit Compliance Test, then you may change the death
benefit option, subject to our underwriting rules in
effect at the time of the change. Requests for a change
must be made in writing to our Service Center. The
effective date of the change will be the Policy
Anniversary on or next following the date of receipt of
your request.
If you change from Option B to Option A, we will
increase the Specified Face Amount by the Account Value.
If you change from Option A to Option B, we will reduce
the Specified Face Amount by the Account Value. In either
case, the amount of the Base Death Benefit at the time of
change will not be altered, but the change will affect
the determination of the Base Death Benefit going
forward.
A change in the death benefit option could cause
total premiums paid prior to the change to exceed the
applicable maximum premium limitations under the
Guideline Premium Test. The change could also reduce
these limitations for future premium payments. If the
requested change causes total premiums paid to exceed the
applicable maximum premium limitations, you will be
required to
12 SUN LIFE CORPORATE VUL-SM-
<PAGE>
make a partial surrender of your Policy. You should
consult a qualified tax adviser before changing the death
benefit option.
APB RIDER DEATH BENEFIT. The APB Rider Death Benefit
is THE GREATER OF ZERO OR THE RESULT OF the APB Rider
Face Amount minus the excess, if any, of the Base Death
Benefit over--
- the Specified Face Amount, if the applicable death
benefit option is Option A, or
- the Specified Face Amount plus the Account Value,
if the applicable death benefit option is Option B.
MINIMUM FACE AMOUNT. Total Face Amount is the sum of
the Specified Face Amount and the APB Rider Face Amount.
In general, the Total Face Amount must be at least
$50,000, of which the Specified Face Amount must be at
least $5,000. We reserve the right to waive these
minimums and to offer your Policy only in conjunction
with an APB Rider with a specified APB Rider Face Amount.
CHANGES IN FACE AMOUNT. After the end of the first
Policy Year, you may change the Specified Face Amount
and, if applicable, the APB Rider Face Amount, subject to
our underwriting rules in effect at the time of the
change. Unless you specify otherwise, we will first apply
a change to the APB Rider Face Amount to the extent
possible. You must send your request for a change to our
Service Center in writing. The Effective Date of Coverage
for changes will be--
- for any increase in coverage, the Monthly
Anniversary Day that falls on or next follows the
date we approve the supplemental application for
the increase; and
- for any decrease in coverage, the Monthly
Anniversary Day that falls on or next follows the
date we receive your request.
INCREASES IN FACE AMOUNT. An increase in the
Specified Face Amount and, if applicable, the APB Rider
Face Amount, is subject to our underwriting rules in
effect at the time of the increase. You may be required
to submit satisfactory evidence of the insured's
insurability.
DECREASES IN FACE AMOUNT. The Specified Face Amount
may not decrease to less than the Minimum Specified Face
Amount specified in your Policy. Similarly, a decrease in
Specified Face Amount or APB Rider Face Amount may not
decrease the Total Face Amount to an amount less than the
Minimum Total Face Amount specified in your Policy. A
decrease in face amount will be applied--
- first, to the most recent increase;
- second, to the next most recent increases in
reverse chronological order; and
- finally, to the initial face amount.
A decrease in the Specified Face Amount or APB Rider
Face Amount could cause total premiums paid prior to the
change to exceed the applicable maximum premium
limitations under the Guideline Premium Test. The change
could also reduce these limitations for future premium
payments. If the
13 SUN LIFE CORPORATE VUL-SM-
<PAGE>
requested change causes total premiums paid to exceed the
applicable maximum premium limitations, you will be
required to make a partial surrender of your Policy. You
should consult a qualified tax adviser before decreasing
the Specified Face Amount or APB Rider Face Amount.
ACCOUNT VALUE
Your Account Value is the sum of the amounts in each
Sub-Account of the Variable Account with respect to your
Policy, plus the amount of the Loan Account.
We measure the amounts in the Sub-Accounts in terms
of Units and Unit Values. On any given day, the amount
you have in a Sub-Account is equal to the Unit Value
multiplied by the number of Units credited to you in that
Sub-Account. The Units for each Sub-Account will have
different Unit Values.
A VALUATION DATE is Amounts allocated to a Sub-Account will be used to
any day on which we, purchase Units of the Sub-Account. Units are
the applicable Fund, redeemed when you make partial surrenders, undertake
and the New York policy loans or transfer amounts from a Sub-Account, and
Stock Exchange are for payment of the Mortality and Expense Risk Charge,
open for business. the Monthly Expense Charge, and the Monthly Cost of
The VALUATION PERIOD Insurance Charge. The number of Units of each
is the period of Sub-Account purchased or redeemed is determined by
time from one dividing the dollar amount of the transaction by the
determination of Unit Value for the Sub-Account. The Unit Value for each
Unit Values to the Sub-Account is set at $10.00 for its first VALUATION
next. DATE. The Unit Value for any subsequent Valuation Date
is equal to the Unit Value for the preceding Valuation
Date multiplied by the Net Investment Factor. The Unit
Value of a Sub- Account for any Valuation Date is
determined as of the close of the VALUATION PERIOD
ending on that Valuation Date.
Transactions are normally processed on the date we
receive a premium at our Principal Office or any
acceptable written or telephonic request is received at
our Service Center. If your premium or request is
received on a date that is not a Valuation Date, or after
the close of the New York Stock Exchange on a Valuation
Date, the transaction will be processed on the next
Valuation Date.
The INVESTMENT START ACCOUNT VALUE IN THE SUB-ACCOUNTS. The Account
DATE is the date we Value attributable to each Sub-Account of the
apply your first Variable Account on the INVESTMENT START DATE equals--
premium payment, - that portion of Net Premium received and allocated
which will be THE to the Sub-Account, MINUS
LATER OF the Issue - the Monthly Expense Charges due on the Issue Date
Date, the Business and subsequent Monthly Anniversary Days through
Day we approve your the Investment Start Date, MINUS
policy application, - the Monthly Cost of Insurance deductions due from
or the Business Day the Issue Date through the Investment Start Date.
we receive a premium
equal to or in
excess of the
Minimum Premium.
The Account Value attributable to each Sub-Account of
the Variable Account on subsequent Valuation Dates is
equal to--
- the Account Value attributable to the Sub-Account
on the preceding Valuation Date multiplied by that
Sub-Account's Net Investment Factor, MINUS
14 SUN LIFE CORPORATE VUL-SM-
<PAGE>
- the Daily Risk Percentage multiplied by the number
of days in the Valuation Period multiplied by the
Account Value in the Sub-Account, PLUS
- that portion of Net Premium received and allocated
to the Sub-Account during the current Valuation
Period, PLUS
- any amounts transferred by you to the Sub-Account
from another Sub-Account during the current
Valuation Period, PLUS
- that portion of any loan repayment allocated to the
Sub-Account during the current Valuation Period,
PLUS
- that portion of any interest credited on the Loan
Account which is allocated to the Sub-Account
during the current Valuation Period, MINUS
- any amounts transferred by you from the Sub-Account
to another Sub-Account during the current Valuation
Period, MINUS
- that portion of any partial surrenders deducted
from the Sub-Account during the current Valuation
Period, MINUS
- that portion of any Policy loan transferred from
the Sub-Account to the Loan Account during the
current Valuation Period, MINUS
- if a Monthly Anniversary Day occurs during the
current Valuation Period, that portion of the
Monthly Expense Charge for the Policy month just
beginning charged to the Sub-Account, MINUS
- if a Monthly Anniversary Day occurs during the
current Valuation Period, that portion of the
Monthly Cost of Insurance for the Policy month just
ending charged to the Sub-Account, MINUS
- if you surrender during the current Valuation
Period, that portion of the pro-rata Monthly Cost
of Insurance for the Policy month charged to the
Sub-Account.
A Sub-Account's Unit NET INVESTMENT FACTOR. The Net Investment Factor is
Value on any used to measure the Sub-Account's investment
Valuation Date is performance from one Valuation Period to the next. This
equal to the Unit factor will be greater or less than or equal to one,
Value for the corresponding to a positive or negative or to a lack of
preceding Valuation change in the Sub-Account's investment performance for
Date multiplied by the preceding Valuation Period.
the Net Investment The Net Investment Factor for each Sub-Account for
Factor. any Valuation Period is determined by dividing the net
result of--
- the net asset value of a mutual fund share held in
the Sub-Account determined as of the end of the
Valuation Period, PLUS
Although we do not - the per share amount of any dividend or other
currently take any distribution declared on fund shares held in the
federal, state or Sub-Account if the"ex-dividend" date occurs during
local taxes into the Valuation Period, PLUS OR MINUS
account when - a per share credit or charge with respect to any
determining the Net taxes reserved for by us, or paid by us if not
Investment Factor, previously reserved for, during the Valuation
we reserve the right Period which are determined by us to be
to do so. attributable to the operation of the Sub-Account,
--by the net asset value of a fund share held in the
Sub-Account determined as of the end of the preceding
Valuation Period.
15 SUN LIFE CORPORATE VUL-SM-
<PAGE>
ACCOUNT VALUE IN THE LOAN ACCOUNT. The Account Value
in the Loan Account is zero on the Investment Start Date.
The Account Value in the Loan Account on any day
after the Investment Start Date equals--
- the Account Value in the Loan Account on the
preceding day credited with interest at the rate
specified in the Policy as the "interest credited
on Loan Account rate" of 4%, PLUS
- any amount transferred from Sub-Accounts to the
Loan Account for Policy loans requested on that
day, MINUS
- any loan repayments made on that day, MINUS
- if that day is a Policy Anniversary, any amount
transferred to the Sub-Accounts by which the Loan
Account Value exceeds the outstanding Policy loan.
Your Policy may INSUFFICIENT VALUE. If the Account Value minus the
terminate if your outstanding Policy Debt is less than or equal to
Account Value minus zero on a Valuation Date, then your Policy will
any outstanding terminate for no value, subject to a grace period
Policy Debt drops to described below.
zero.
You will have 61 GRACE PERIOD. If, on a Valuation Date, your Policy
days to pay enough will terminate by reason of insufficient value, we
premium to prevent will allow a grace period. This grace period will allow
termination. 61 calendar days from that Valuation Date for the
payment of a Net Premium sufficient to cover the
deductions from the Account Value. Notice of premium due
will be mailed to your last known address or the last
known address of any assignee of record. We will assume
that your last known address is the address shown on
your policy application (or notice of assignment),
unless we have received satisfactory written notice of a
change in address. If the premium due is not paid during
the grace period, then the Policy will terminate without
value at the end of the 61 day period without further
notice. The Policy will continue to remain in force
during this grace period. If the Policy Proceeds become
payable during the grace period, then we will deduct any
overdue Monthly Cost of Insurance and Monthly Expense
Charge from the amount payable.
SPLITTING UNITS. We reserve the right to split or
combine the value of Units. In effecting any such change,
strict equity will be preserved and no change will have a
material effect on the benefits or other provisions of
the Policy.
TRANSFER PRIVILEGES
You normally may at any time transfer all or a
portion of your Account Value among Sub-Accounts. We will
make transfers pursuant to an authorized written or
telephone request to our Service Center. We will honor
telephone requests if we have a properly completed
telephone authorization form for you on file. We, our
affiliates and the representative from whom you purchase
your Policy will not be responsible for losses resulting
from acting upon telephone requests reasonably believed
to be genuine. We will use reasonable procedures
16 SUN LIFE CORPORATE VUL-SM-
<PAGE>
to confirm that instructions communicated by telephone
are genuine. Our procedures require that you identify
yourself by name and a personal identification number.
Other procedures may also apply. In addition, telephone
requests may be recorded.
You may transfer a specified dollar amount or a
specified percentage of a Sub-Account's value.
Your transfer privileges are subject to our consent.
We reserve the right to impose limitations on transfers,
including, but not limited to--
- the minimum amount that may be transferred; and
- the minimum amount that may remain in a Sub-Account
following a transfer from that Sub-Account.
In addition, transfer privileges are subject to any
restrictions that may be imposed by the Funds.
ACCESSING YOUR ACCOUNT VALUE
SURRENDER. You may surrender your Policy for its
Cash Surrender Value at any time. If you do, the
insurance coverage and all other benefits under the
Policy will terminate. The Cash Surrender Value is--
- the Account Value, minus
- the outstanding balance of any outstanding Policy
Debt, plus
SALES LOAD REFUND AT - the SALES LOAD REFUND AT SURRENDER, if any.
SURRENDER is that PARTIAL SURRENDERS. You may make a partial
portion of any surrender of your Policy once each Policy Year after the
premium paid in the first Policy Year by written request to our Service
Policy Year of Center. The amount of any partial surrender may not
surrender that we exceed the Account Value minus any outstanding Policy
will refund if you Debt. Unless you provide us satisfactory evidence that
surrender your the insured remains an acceptable risk based on our
Policy in the first underwriting limits and standards, the Total Face Amount
three Policy Years. will be reduced to the extent necessary so that
Partial surrenders - the death benefit minus the Account Value
reduce your Policy's immediately after the Partial Surrender DOES NOT
Total Face Amount EXCEED
and may have tax - the death benefit minus the Account Value
consequences. immediately before the Partial Surrender.
If you provide satisfactory evidence of insurability,
the death benefit will be equal to what it was
immediately prior to the partial surrender. After the
partial surrender, the Specified Face Amount may not be
lower than the minimum Specified Face Amount and the
Total Face Amount may not be lower than the minimum Total
Face Amount.
17 SUN LIFE CORPORATE VUL-SM-
<PAGE>
You may allocate a partial surrender among the
Sub-Accounts of the Variable Account. If you do not
specify the allocation, then we will allocate the partial
surrender among the Sub-Accounts in the same proportion
that the Account Value of each Sub-Account bears to the
aggregate Account Value of all Sub-Accounts on the date
of partial surrender.
You may borrow from POLICY LOANS. You may request a policy loan of up
us using your Policy to 90% of your Account Value, decreased by the
as collateral. balance of any outstanding Policy Debt on the date the
policy loan is made. We will transfer Account Value
equal to the amount of the policy loan from the
Sub-Accounts to the Loan Account on the date the policy
loan is made. You may allocate the policy loan among the
Sub- Accounts. If you do not specify the allocation,
then we will allocate the policy loan among the
Sub-Accounts in the same proportion that the Account
Value of each Sub-Account bears to the aggregate Account
Value of all Sub-Accounts immediately prior to the loan.
Interest on the policy loan will accrue daily at an
annual rate of 5% in Policy Years one through ten and
4.25% thereafter. This interest will be due and payable
to us in arrears on each Policy Anniversary. Any unpaid
interest will be added to the principal amount as an
additional policy loan and will bear interest at the same
rate and in the same manner as the prior policy loan.
All funds we receive from you will be credited to
your Policy as premium unless we have received
satisfactory written notice that the funds are to be
applied to repay a policy loan. It is generally
advantageous to repay a loan rather than to make a
premium payment, because premium payments incur expense
charges but loan repayments do not. Loan repayments will
first reduce the outstanding balance of the policy loan
and then accrued but unpaid interest on such loans. We
will accept repayment of any policy loan at any time
before Maturity. The amount of the loan repayment up to
the outstanding balance of the policy loan will be
transferred from the Loan Account to the Sub-Accounts.
You may allocate the loan repayment among the
Sub-Accounts. If you do not specify the allocation, then
we will allocate the loan repayment among the Sub-
Accounts in the same proportion that the Account Value of
each Sub-Account bears to the total Account Value minus
the Loan Account immediately prior to the loan repayment.
DEFERRAL OF PAYMENT. We will usually pay any amount
due from the Variable Account within seven days after the
Valuation Date following our receipt of written notice
for payment or, in the case of death of the insured, Due
Proof of such death. Payment of any amount payable from
the Variable Account on death, surrender, partial
surrender, or policy loan may be postponed whenever--
- the New York Stock Exchange is closed, other than
customary weekend and holiday closing, or trading
on that exchange is otherwise restricted;
- the SEC, by order, permits postponement for the
protection of policyowners; or
- an emergency exists as determined by the SEC, as a
result of which disposal of securities is not
reasonably practicable, or it is not reasonably
practicable to determine the value of the assets of
the Variable Account.
18 SUN LIFE CORPORATE VUL-SM-
<PAGE>
CASH SURRENDER VALUE PAYABLE UPON MATURITY
If the insured is living and your Policy is in force
on the date of Maturity, the Cash Surrender Value is
payable to you.
CHARGES, DEDUCTIONS AND REFUNDS
EXPENSE CHARGES APPLIED TO PREMIUM. We deduct
charges from each premium payment for premium taxes and
our federal tax obligations and as a sales load.
States and a few cities and municipalities may impose
taxes on premiums paid for life insurance, which
generally range from 2% to 4% of premium but may exceed
4% in some states (for example, Kentucky). We will from
time to time determine the applicable premium tax rate
based on the rate we expect to pay in your state of
residence. The premium tax rate is guaranteed not to
exceed 4% for all states except Kentucky, in which case
it is guaranteed not to exceed 9%. If you change your
state of residence, we will adjust the premium tax rate
to reflect the rate for the new state of residence.
We deduct a 1.25% charge from each premium payment
for our federal tax obligations. This charge is
guaranteed not to exceed 1.25%.
TARGET PREMIUM We also charge a 8.75% sales load on each premium
varies based on the payment up to an amount of Target Premium specified
Specified Face in your Policy and a 2.25% sales load on premiums paid
Amount and the in excess of TARGET PREMIUM for each of the first seven
insured's Issue Age Policy Years. Sales load rates are guaranteed not to
and sex. exceed these amounts. There are no sales load charges
after the seventh Policy Year. We may reduce or waive
the sales load for certain group or sponsored
arrangements and corporate purchasers.
SALES LOAD REFUND AT SURRENDER. If you surrender
your Policy during the first three Policy Years, we will
refund a portion of the sales load charged against
premium payments MADE DURING THE POLICY YEAR IN WHICH YOU
SURRENDERED YOUR POLICY. We will refund an amount equal
to 6% of premium paid up to the Target Premium, plus the
entire amount of any sales load charged against premium
paid in excess of the Target Premium.
MORTALITY AND EXPENSE RISK CHARGE. We deduct a daily
charge from the assets of the Variable Account for the
mortality and expense risks we assume with respect to the
Policy. This charge is based on the applicable Daily Risk
Percentage, which we will from time to time determine
based on our expectations of future interest, mortality
experience, persistency, expenses and taxes. Expressed as
an equivalent annual rate, the Daily Risk Percentage is
guaranteed not to exceed 0.90% (0.0024548% daily) of
assets. Our current effective annual rates as a
percentage of assets are--
- 0.60% (0.0016389% daily) for Policy Years 1 through
10;
- 0.20% (0.0005474% daily) for Policy Years 11
through 20; and
- 0.10% (0.0002738% daily) thereafter.
The mortality risk we assume is that the group of
lives insured under the Policies may, on average, live
for shorter periods of time than we estimated. The
19 SUN LIFE CORPORATE VUL-SM-
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expense risk we assume is that the costs of issuing and
administering Policies may be more than we estimated.
MONTHLY EXPENSE CHARGE. We deduct a flat charge at
the beginning of each month to cover administrative and
other expenses actually incurred. We will from time to
time determine the applicable Monthly Expense Charge
based on our expectations of future expenses, which will
not exceed $13.75 in any Policy Month. We will allocate
the Monthly Expense Charge among the Sub-Accounts in the
same proportion that the Account Value of each
Sub-Account bears to the aggregate Account Value of all
Sub-Accounts immediately prior to the deduction.
Currently, the Monthly Expense Charge is $13.75 per month
for the first Policy Year and $7.50 per month thereafter.
MONTHLY COST OF INSURANCE. We deduct a Monthly Cost
of Insurance charge from your Account Value to cover
anticipated costs of providing insurance coverage. This
charge is made, in arrears, at the end of each Policy
Month. If you surrender your Policy on any day other than
a Monthly Anniversary Day, we will deduct a cost of
insurance charge on a pro-rata basis. We will allocate
the Monthly Cost of Insurance deduction among
Sub-Accounts in the same proportion that the Account
Value of each Sub-Account bears to the aggregate Account
Value of all Sub-Accounts immediately prior to the
deduction.
Monthly cost of insurance rates are based on the
length of time the Policy has been in force and on the
insured's sex (except for unisex Policies), Issue Age,
Class and table rating, if any. We will from time to time
determine the applicable rates based on our expectations
of future experience with respect to mortality,
persistency, interest rates, expenses and taxes. Our cost
of insurance rates for coverage under the Policy are
guaranteed not to exceed the applicable maximum monthly
rates shown in your Policy which are based on the 1980
Commissioner's Standard Ordinary Mortality Table A (for
males and unisex Policies) or Table G (for females),
unless the insured has been rated a substan-
dard risk. Our cost of insurance rates for coverage under
the APB Rider are guaranteed not to exceed the applicable
maximum monthly rates shown in your Policy. In general,
the maximum monthly rates for coverage under the APB
Rider will not exceed 125% of the monthly rates based on
the 1980 CSO Mortality Table A (for males and unisex
Policies) or G (for females), unless the insured has been
rated a substandard risk. Monthly cost of insurance rates
for classes of insureds with substandard risk ratings are
based on multiples of the CSO Mortality Tables described
above.
REDUCTION OF CHARGES. We reserve the right to reduce
any of our charges and deductions in connection with the
sale of the Policy if we expect that the sale may result
in cost savings, subject to any requirements we may from
time to time impose. We may change our requirements based
on experience. We will determine the propriety and amount
of any reduction. No reduction will be unfairly
discriminatory against the interests of any class of
policyowner.
TERMINATION OF POLICY
Your Policy will terminate on the earliest of--
- the date we receive your request to surrender,
- the expiration date of the grace period,
20 SUN LIFE CORPORATE VUL-SM-
<PAGE>
- the date of insured's death, or
- the date of Maturity.
OTHER POLICY PROVISIONS
ALTERATION. Our sales representatives do not have
the authority to either alter or modify your Policy or to
waive any of its provisions. The only persons with this
authority are our president, actuary, secretary, or one
of our vice presidents.
ASSIGNMENTS. During the lifetime of the insured, you
may assign all or some of your rights under the Policy.
All assignments must be filed at our Service Center and
must be in satisfactory written form. The assignment will
then be effective as of the date you signed the form,
subject to any action taken before we receive it at our
Service Center. We are not responsible for the validity
or legal effect of any assignment.
RIGHTS OF OWNER. While the insured is alive, unless
you have assigned any of these rights, you may--
- transfer ownership to a new owner;
- name a contingent owner who will automatically
become the owner of the Policy if you die before
the insured;
- change or revoke a contingent owner;
- change or revoke a beneficiary; and
- exercise all other rights in the Policy.
When you transfer your rights to a new owner, you
automatically revoke any prior contingent owner
designation. You do not affect a prior beneficiary when
you merely transfer ownership, or change or revoke a
contingent owner designation. When you want to change or
revoke a prior beneficiary designation, you have to
specify that action.
You do not need the consent of a beneficiary or a
contingent owner in order to exercise any of your rights.
However, you must give us written notice of the requested
action. The request must be filed at our Service Center
and must be in satisfactory written form. Your request
will then, except as otherwise specified in the Policy,
be effective as of the date you signed the form, subject
to any action taken before we receive it at our Service
Center.
RIGHTS OF BENEFICIARY. The beneficiary has no rights
in the Policy until the death of the insured. If a
beneficiary is alive at that time, the beneficiary will
be entitled to payment of the Policy Proceeds as they
become due.
REPORTS TO POLICYOWNERS. We will send you a report
at least once each Policy Year. The report will show
current policy values, premiums paid, and deductions made
since the last report. It will also show the balance of
any outstanding policy loans and accrued interest on
those loans.
ILLUSTRATIONS. Upon request, we will provide you
with a hypothetical illustration of future Account Value
and Death Benefits. This illustration will be furnished
to you for a fee not to exceed $25.
21 SUN LIFE CORPORATE VUL-SM-
<PAGE>
CONVERSION. You may convert your Policy into a
flexible premium universal life policy offered by an
affiliate, Sun Life Assurance Company of Canada, during
the first 24 months after the Issue Date while the Policy
is in force. Choice of a new policy is subject to our
approval and will be restricted to those policies that
offer the same Class and rating as your Policy. Our
affiliate will issue the new policy with the same Class
and rating as the Policy without new evidence of the
insured's insurability. This provision does not apply to
the APB
Rider, if any, or to any other supplemental benefits that
may be attached to the Policy. Any riders or supplemental
benefits will terminate automatically when the Policy is
converted.
MISSTATEMENT OF AGE OR SEX. If the age or sex
(unless a unisex Policy) of the insured is stated
incorrectly in your policy application, the amounts
payable by us will be adjusted.
MISSTATEMENT DISCOVERED AT DEATH--The Death Benefit
will be recalculated to that which would be purchased by
the most recently charged Monthly Cost of Insurance rate
for the correct age or sex.
MISSTATEMENT DISCOVERED PRIOR TO DEATH--The Account
Value will be recalculated from the Issue Date using the
Monthly Cost of Insurance rates based on the correct age
or sex.
SUICIDE. Unless state law otherwise requires, if the
insured, whether sane or insane, commits suicide within
two years after the Issue Date, we will not pay any part
of the Policy Proceeds. We will refund to you the
premiums paid, minus the amount of any Policy Debt and
any partial surrenders.
INCONTESTABILITY. All statements made in an
application or in a supplemental application are
representations and not warranties. We will rely on these
statements when approving the issuance, increase in face
amount, increase in Base Death Benefit over premium paid,
or change in death benefit option of the Policy. We can
use no statement in defense of a claim unless the
statement was made in the application or in a
supplemental application. In the absence of fraud, after
a Policy has been in force during the lifetime of the
insured for a period of two years from its Issue Date, we
cannot contest it except for non-payment of premiums.
However, any increase in the Total Face Amount which is
effective after the Issue Date will be incontestable only
after the increase has been in force during the lifetime
of the insured for two years from the effective date of
coverage of the increase. Any increase in Base Death
Benefit over premium paid or increase in Base Death
Benefit due to a death benefit option change will be
incontestable only after such increase has been in force
during the lifetime of the insured for two years from the
date of the increase.
ADDITION, DELETION OR SUBSTITUTION OF
INVESTMENTS. Subject to our obtaining any necessary
regulatory approvals, shares of other registered open-end
investment companies or unit investment trusts may be
substituted both for fund shares already purchased by the
Variable Account and/or as the security to be purchased
in the future. In addition, the investment policies of
the Sub-Accounts will not be changed without the approval
of the Insurance Commissioner of the State of Delaware.
We also reserve the right to eliminate or combine
existing Sub-Accounts or to transfer assets between
Sub-Accounts. In
22 SUN LIFE CORPORATE VUL-SM-
<PAGE>
the event of any substitution or other act described
above, we may make appropriate amendment to the Policy to
reflect the substitution.
NONPARTICIPATING. The Policy does not pay dividends.
The Policy does not share in our profits or surplus
earnings.
MODIFICATION. Upon notice to you, we may modify the
Policy if that modification--
- is necessary to make the Policy or the Variable
Account comply with any law or regulation issued by
a governmental agency to which we are or the
Variable Account is subject;
- is necessary to assure continued qualification of
the Policy under the Internal Revenue Code or other
federal or state laws as a life insurance policy;
- is necessary to reflect a change in the operation
of the Variable Account or the Sub-Accounts; or
- adds, deletes or otherwise changes Sub-Account
options.
We also reserve the right to modify certain
provisions of the Policy as stated in those provisions.
In the event of any such modification, we may make
appropriate amendment to the Policy to reflect the
modification.
ENTIRE CONTRACT. Your entire contract with us
consists of the Policy, including your policy application
and any attached copies of supplemental applications for
increases in the face amount. Any hypothetical
illustrations prepared in connection with the Policy do
not form a part of our contract with you and are intended
solely to provide information about how policy values may
be affected by different investment returns and other
factors.
PERFORMANCE INFORMATION
We may present the From time to time, we may advertise TOTAL RETURN and
performance of the AVERAGE ANNUAL TOTAL RETURN of the Funds. This
underlying fund performance information is based on historical earnings
options in sales and is not intended to indicate future performance.
literature.
Total return for a Fund refers to the total of the
income generated by the Fund net of total operating
expenses plus capital gains and losses, realized or
unrealized, for the Fund. Total return for the
Sub-Accounts refers to the total of the income generated
by the Fund net of total operating expenses plus capital
gains and losses, realized or unrealized, for the Fund
and net of the mortality and expense risk charge. Average
annual total return reflects the hypothetical annually
compounded return that would have produced the same
cumulative return if the Fund's or Sub-Account's
performance had been constant over the entire period.
Because average annual total returns tend to smooth out
variations in the return of the Fund or Sub-Account, they
are not the same as actual year-by-year results.
23 SUN LIFE CORPORATE VUL-SM-
<PAGE>
We may compare performance information in reports and
promotional literature to--
- the S&P 500, Dow Jones Industrial Average, Lehman
Brothers Aggregate Bond Index or other unmanaged
indices so that investors may compare the
Sub-Account results with those of a group of
unmanaged securities widely regarded by investors
as representative of the securities markets in
general;
- other groups of variable life separate accounts or
other investment products tracked by Lipper
Analytical Services, a widely used independent
research firm which ranks mutual funds and other
investment products by overall performance,
investment objectives, and assets, or tracked by
other services, companies, publications, or
persons, such as Morningstar, Inc., who rank such
investment products on overall performance or other
criteria; or
- the Consumer Price Index (a measure for inflation)
to assess the real rate of return from an
investment in the Sub-Account.
Unmanaged indices may assume the reinvestment of
dividends but generally do not reflect deductions for
administrative and management costs and expenses.
We may provide in advertising, sales literature,
periodic publications or other materials information on
various topics of interest to policyowners and
prospective policyowners. Topics may include--
- the relationship between sectors of the economy and
the economy as a whole and its effect on various
securities markets, investment strategies and
techniques (such as value investing, market timing,
dollar cost averaging, asset allocation, constant
ratio transfer and account rebalancing);
- the advantages and disadvantages of investing in
tax-deferred and taxable investments;
- customer profiles and hypothetical purchase and
investment scenarios;
- financial management and tax and retirement
planning; and
- investment alternatives to certificates of deposit
and other financial instruments, including
comparisons between the Policy and the
characteristics of and market for such financial
instruments.
The Policy was first offered to the public in 1997.
We may, however, advertise total return data based on the
period of time that the Funds have been in existence. The
results for any period prior to the time the Policy was
first publicly offered will be calculated as if the
Policy had been offered during that period of time.
24 SUN LIFE CORPORATE VUL-SM-
<PAGE>
VOTING RIGHTS
We will vote shares of the Funds held in the Variable
Account in accordance with instructions received from
policyowners having a voting interest in the
corresponding Sub-Accounts, to the extent required by
law. We will provide each policyowner who has a voting
interest a Sub-Account with the proxy materials of the
corresponding Fund, together with an appropriate form for
the policyowner to submit its voting instructions to us.
We will vote shares for which we receive no timely
instructions, together with shares not attributable to
any Policy, in the same proportion as those shares held
by the Sub-Account for which we receive instructions.
We will determine the number of shares for which you
are entitled to provide voting instructions as of the
record date established for the applicable Fund. This
number is determined by dividing your Account Value in
the Sub-Account, if any, by the net asset value of one
share in the corresponding Fund.
We may, if required by state insurance regulators,
disregard voting instructions if the instructions require
shares to be voted to cause a change in the
subclassification or investment objective of one or more
of the Funds, or to approve or disapprove an investment
advisory contract for a Fund. In addition, we may
disregard voting instructions in favor of any change in
the investment policies or in any investment adviser or
principal underwriter of a Fund. Our disapproval of any
such change must be reasonable and, in the case of a
change in investment policies or investment adviser,
based on a good faith determination that the change would
be contrary to state law or otherwise inappropriate in
light of the objectives and purposes of the Fund. If we
disregard voting instructions, we will include a summary
of and the reasons for that action in our next periodic
report to policyowners.
We reserve the right to vote shares held in the
Variable Account in our own right, if permitted by
applicable law.
DISTRIBUTION OF POLICY
We will offer the Policy only in jurisdictions where
the Policy may be lawfully sold. The Policy may be sold
only by persons who are licensed insurance agents under
applicable state law and who are licensed by the National
Associated of Securities Dealers, Inc. (the "NASD") to
sell variable insurance contracts as a registered
representative of a broker-dealer which has entered into
a distribution agreement with us and our general
distributor, Clarendon Insurance Agency, Inc., one of our
wholly-owned subsidiaries. Clarendon is a registered
broker-dealer and member of the NASD. Clarendon's
principal business offices are located at One Sun Life
Executive Park, Wellesley Hills, Massachusetts 02481.
We pay registered We may pay commissions in connection with sales of
broker- dealers to the Policy, and we may pay bonuses, as well as
sell the Policy. expense and training allowances. The maximum commission
payable will be 15% of premium paid in the first Policy
Year and 9% of premium paid in Policy Years two through
seven. We may also pay a commission of--
- up to 0.10% of Account Value for Policy Years one
through seven;
- up to 0.20% of Account Value for Policy Years eight
through twenty; and
25 SUN LIFE CORPORATE VUL-SM-
<PAGE>
- up to 0.10% of Account Value thereafter.
FEDERAL TAX CONSIDERATIONS
The following is a summary of our understanding of
current federal income tax laws and is not intended as
tax advice. You should be aware that Congress has the
power to enact legislation affecting the tax treatment of
life insurance contracts which could be applied
retroactively. New judicial or administrative
interpretation of federal income tax law may also affect
the tax treatment of life insurance contracts. The
Internal Revenue Code of 1986, as amended (the "Code"),
is not in force in the Commonwealth of Puerto Rico.
Accordingly, some references in this summary will not
apply to Policies issued in Puerto Rico. Any person
contemplating the purchase of a Policy or any transaction
involving a Policy should consult a qualified tax
adviser. WE DO NOT MAKE ANY REPRESENTATION OR PROVIDE ANY
GUARANTEE REGARDING THE FEDERAL, STATE OR LOCAL TAX
TREATMENT OF ANY POLICY OR ANY TRANSACTION INVOLVING A
POLICY.
OUR TAX STATUS
We are taxed as a life insurance company under
Subchapter L of the Code. Although we account for the
operations of the Variable Account separately from our
other operations for purposes of federal income taxation,
the Variable Account currently is not separately taxable
as a regulated investment company or other taxable
entity.
Taxes we pay, or reserve for, that are attributable
to the earnings of the Variable Account could affect the
Net Investment Factor, which in turn affects your Account
Value. Under existing federal income tax law, however,
the income (consisting primarily of interest, dividends
and net capital gains) of the Variable Account, to the
extent applied to increase reserves under the Policy, is
not taxable to us. Similarly, no state or local income
taxes are currently attributable to the earnings of the
Variable Account. Therefore, we do not take any federal,
state or local taxes into account when determining the
Net Investment Factor. We may take taxes into account
when determining the Net Investment Factor in future
years if, due to a change in law, our tax status or
otherwise, such taxes are attributable to the earnings of
the Variable Account.
TAXATION OF POLICY PROCEEDS
Section 7702 of the Code provides certain tests for
whether a policy will be treated as a "life insurance
contract" for tax purposes. Provided that the owner of a
Policy has an insurable interest in the insured, we
believe that the Policy meets these tests, and thus
should receive the same federal income tax treatment as a
fixed life insurance contract. As such, the death benefit
under the Policy will be eligible for exclusion from the
gross income of the beneficiary under Section 101 of the
Code, and the owner will not be deemed to be in
constructive receipt of the increases in Cash Surrender
Values, including additions attributable to interest,
dividends, appreciation or gains realized upon transfers
among the Sub-Accounts, until actual receipt thereof.
CORPORATE OWNERS, HOWEVER, MAY BE SUBJECT TO ALTERNATIVE
MINIMUM TAX ON THE ANNUAL INCREASES IN CASH SURRENDER
VALUES AND ON THE DEATH BENEFIT.
26 SUN LIFE CORPORATE VUL-SM-
<PAGE>
To qualify as a life insurance contract under Section
7702, the Policy must satisfy certain actuarial
requirements. Section 7702 requires that actuarial
calculations be based on mortality charges that meet the
"reasonable mortality charge" requirements set forth in
the Code, and other charges reasonably expected to be
actually paid. The law relating to reasonableness
standards for mortality and other charges is based on
statutory language and certain IRS pronouncements that do
not address all relevant issues. Accordingly, although we
believe that the mortality and other charges that are
used in the calculations (including those used with
respect to Policies issued to so-called "sub-standard
risks") meet the applicable requirements, we cannot be
certain. It is possible that future regulations will
contain standards that would require us to modify the
mortality and other charges used in the calculations, and
we reserve the right to make any such modifications.
For a variable contract like the Policy to qualify as
life insurance for federal income tax purposes, it also
must comply with the investment diversification rules
found in Section 817 of the Code. We believe that the
Variable Account complies with the diversification
requirements prescribed by Section 1.817-5 of the
Treasury Regulations. We also believe that the owner does
not have excessive control over the assets underlying the
Policy that would cause the owner to be treated as owning
the investments underlying the Policy for federal income
tax purposes. If guidelines are adopted which would treat
the owner as having excessive control over the
investments underlying the Policy, we will take any
action (including modification of the Policy or the
Variable Account) necessary to comply with the
guidelines.
Upon the complete surrender or lapse of a Policy, the
amount by which the sum of the Policy's Cash Surrender
Value and any unpaid Policy Debt exceeds the owner's
"Investment in the Policy" (as defined below) is treated
as ordinary income subject to tax. Any loss incurred upon
surrender generally is not deductible.
The term "Investment in the Policy" means--
- the aggregate amount of any premiums or other
consideration paid for a Policy, MINUS
- the aggregate amount received under a Policy which
is excluded from the owner's gross income (other
than loan amounts), PLUS
- the amount of any loan from, or secured by, a
Policy that is a Modified Endowment Contract (as
defined below) to the extent that such amount is
included in the owner's gross income.
The repayment of a policy loan (or the payment of
interest on a loan) does not affect the Investment in the
Policy.
The tax consequences of distributions from, and loans
taken from or secured by, a Policy depend on whether the
Policy is classified as a Modified Endowment Contract
under Section 7702A of the Code. Due to the flexibility
of the payment of premiums and other rights you have
under the Policy, classification of the Policy as a
Modified Endowment Contract will depend upon the
individual operation of each Policy. A Policy is a
Modified Endowment Contract if the aggregate amount paid
under the Policy at any time during the first seven
Policy Years exceeds the sum of the net level premiums
that would have been
27 SUN LIFE CORPORATE VUL-SM-
<PAGE>
paid on or before such time if the Policy provided for
paid up future benefits after the payment of seven level
annual premiums. If there is a reduction in benefits
during the first seven Policy Years, the foregoing
computation is made as if the Policy originally had been
issued at the reduced benefit level. If there is a
"material change" to the Policy, the seven year testing
period for Modified Endowment Contract status is
restarted. A life insurance contract received in exchange
for a Modified Endowment Contract also will be treated as
a Modified Endowment Contract.
We have undertaken measures to prevent payment of a
premium from inadvertently causing the Policy to become a
Modified Endowment Contract. In general, you should
consult a qualified tax adviser before undertaking any
transaction involving your Policy to determine whether
such a transaction would cause the Policy to become a
Modified Endowment Contract.
If a Policy is not a Modified Endowment Contract,
cash distributions from the Policy are treated first as a
nontaxable return of the owner's Investment in the Policy
and then as a distribution of the income earned under the
Policy, which is subject to tax. (An exception to this
general rule occurs when a cash distribution is made in
connection with certain reductions in the death benefit
under the Policy in the first fifteen contract years.
Such a cash distribution is taxed in whole or in part as
ordinary income.) Loans from, or secured by, a Policy
that is not a Modified Endowment Contract generally are
treated as bona fide indebtedness, and thus are not
included in the owner's gross income.
If a Policy is a Modified Endowment Contract,
distributions from the Policy are treated as ordinary
income subject to tax up to the amount equal to the
excess of the Account Value (which includes unpaid policy
loans) immediately before the distribution over the
Investment in the Policy. Loans taken from, or secured
by, such a Policy, as well as due but unpaid interest
thereon, are taxed in the same manner as distributions
from the Policy. A 10 percent additional tax is imposed
on the portion of any distribution from, or loan taken
from or secured by, a Modified Endowment Contract that is
included in income except when the distribution or loan
is made on or after the owner attains age 59 1/2, is
attributable to the owner's becoming disabled, or is part
of a series of substantially equal periodic payments for
the life (or life expectancy) of the owner or the joint
lives (or joint life expectancies) of the owner and the
owner's Beneficiary. These exceptions are not likely to
apply where the Policy is not owned by an individual (or
held in trust for an individual). For purposes of the
computations described in this paragraph, all Modified
Endowment Contracts issued by us (or our affiliates) to
the same owner during any calendar year are treated as
one Modified Endowment Contract.
There are limits on the deductibility of policy loan
interest. You should consult a qualified tax adviser
regarding such deductions.
An owner generally will not recognize gain upon the
exchange of the Policy for another life insurance policy
issued by us or another insurance company, except to the
extent that the owner receives cash in the exchange or is
relieved of policy indebtedness as a result of the
exchange. In no event will the gain recognized exceed the
amount by which the Policy's Account Value (which
includes unpaid policy loans) exceeds the owner's
Investment in the Policy.
28 SUN LIFE CORPORATE VUL-SM-
<PAGE>
A transfer of the Policy, a change in the owner, a
change in the beneficiary, certain other changes to the
Policy and particular uses of the Policy (including use
in a so called "split-dollar" arrangement) may have tax
consequences depending upon the particular circumstances
and should not be undertaken prior to consulting with a
qualified tax adviser. For instance, if you transfer your
Policy or designate a new owner in return for valuable
consideration (or, in some cases, if the transferor is
relieved of a liability as a result of the transfer),
then the death benefit payable upon the death of the
insured may in certain circumstances be includible in
your taxable income to the extent that the death benefit
exceeds the prior consideration paid for the transfer and
any premiums and other amounts paid later by the
transferee. Further, in such a case, if the consideration
received exceeds your Investment in the Policy, the
difference will be taxed to you as ordinary income.
Federal, as well as state and local, estate,
inheritance and other tax consequences of ownership or
receipt of Policy Proceeds will depend on your individual
circumstances and those of the beneficiary.
OUR DIRECTORS AND EXECUTIVE OFFICERS
Our directors and executive officers are listed
below, together with information as to their ages, dates
of election and principal business occupations during the
last five years (if other than their present business
occupations). Except as otherwise indicated, those
directors and officers who are associated with Sun Life
Assurance Company of Canada and/or its subsidiaries have
been associated with Sun Life Assurance Company of Canada
for more than five years either in the position shown or
in other positions. The asterisks below denote the year
that the indicated director was elected to our board of
directors.
JOHN D. MCNEIL, 64, Director (1982*)
150 King Street West
Toronto, Ontario, Canada M5H 1J9
He is Chairman and a Director of Sun Life Assurance
Company of Canada; a Director of Massachusetts Financial
Services Company and Sun Life Insurance and Annuity
Company of New York; a Trustee of MFS/Sun Life Series
Trust; Chairman and a Member of the Boards of Managers of
Money Market Variable Account, High Yield Variable
Account, Capital Appreciation Variable Account,
Government Securities Variable Account, World Governments
Variable Account, Total Return Variable Account and
Managed Sectors Variable Account; and a Director of Shell
(Canada) Limited, Canadian Pacific, Ltd. and Canadian
Pacific Securities (Ontario) Limited.
DONALD A. STEWART, 52, Chairman and Director (1996*)
150 King Street West
Toronto, Ontario, Canada M5H 1J9
He is President, Chief Executive Officer and a
Director of Sun Life Assurance Company of Canada;
Chairman and a Director of Sun Life Insurance and Annuity
Company of New York; and a Director of Massachusetts
Financial Services Company, Massachusetts Casualty
Insurance Company, Sun Life Financial Services Limited,
Spectrum United Holdings, Inc. and Sun Life of Canada UK
Holdings, plc.
29 SUN LIFE CORPORATE VUL-SM-
<PAGE>
DAVID D. HORN, 57, Director (1985*)
Strong Road
New Vineyard, ME 04956
He was formerly Senior Vice President and General
Manager for the United States of Sun Life Assurance
Company of Canada, retiring in December, 1997. He is a
Director of Sun Life Insurance and Annuity Company of New
York; a Trustee of MFS/Sun Life Series Trust; and a
Member of the Boards of Managers of Money Market Variable
Account, High Yield Variable Account, Capital
Appreciation Variable Account, Government Securities
Variable Account, World Governments Variable Account,
Total Return Variable Account and Managed Sectors
Variable Account.
ANGUS A. MACNAUGHTON, 67, Director (1985*)
Metro Tower, Suite 1170
950 Tower Lane
Foster City, California 94404
He is President of Genstar Investment Corporation and
a Director of Sun Life Assurance Company of Canada, Sun
Life Insurance and Annuity Company of New York, Canadian
Pacific, Ltd., Varian Associates, Inc., Diversified
Collection Services, Inc., the San Francisco Opera,
Genstar Investment LLC and Genstar Capital Corporation;
and Vice Chairman and a Director of Barrick Gold
Corporation.
JOHN S. LANE, 63, Director (1991*)
150 King Street West
Toronto, Ontario, Canada M5H 1J9
He is Senior Vice President, Investments of Sun Life
Assurance Company of Canada; and a Director of Sun Life
Insurance and Annuity Company of New York.
RICHARD B. BAILEY, 72, Director (1983*)
63 Atlantic Ave
Boston, Massachusetts 02116
He is a Director of Sun Life Insurance and Annuity
Company of New York and a Director/Trustee of certain
Funds in the MFS Family of Funds.
M. COLYER CRUM, 66, Director (1986*)
104 Westcliff Street
Weston, Massachusetts 02193
He is Professor Emeritus of the Harvard Business
School; Chairman and a Director of Phaeton International
N.V.; a Director of Sun Life Assurance Company of Canada,
Sun Life Assurance Company of Canada (U.S.), Sun Life
Insurance and Annuity Company of New York, Cambridge
Bancorp, Cambridge Trust Company, Merrill Lynch Ready
Assets Trust, Merrill Lynch Basic Value Fund, Inc.,
Merrill Lynch Global Growth Fund, Inc., Merrill Lynch
U.S. Treasury Money Fund, Merrill Lynch Special Value
Fund, Inc., Merrill Lynch Capital Fund, Inc., Merrill
Lynch U.S.A. Government Reserves, MuniVest Florida Fund,
MuniVest Michigan Insured Fund, Inc., MuniVest New Jersey
Fund, Inc., MuniYield Michigan Insured Fund, Inc., and
MuniYield New Jersey Insured Fund, Inc.; and a Trustee of
Merrill Lynch Global Resources Trust, Merrill
30 SUN LIFE CORPORATE VUL-SM-
<PAGE>
Lynch Ready Assets Trust, MuniYield Florida Insured Fund,
and MuniYield Pennsylvania Fund. Prior to July, 1996, he
was a Professor at the Harvard Business School.
S. CAESAR RABOY, 62, Senior Vice President and Deputy
General Manager and Director (1996*)
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02181
He is Senior Vice President and Deputy General
Manager for the United States of Sun Life Assurance
Company of Canada; Senior Vice President and a Director
of Sun Life Insurance and Annuity Company of New York;
Vice President and a Director of Sun Life Financial
Services Limited; and a Director of Sun Life of Canada
(U.S.) Distributors, Inc. and Clarendon Insurance Agency,
Inc.
JAMES M.A. ANDERSON, 49, Vice President, Investments
(1998)
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02181
He is Vice President, Investments, of Sun Life
Assurance Company of Canada and Sun Life Insurance and
Annuity Company of New York; President and a Director of
Sun Capital Advisers, Inc.; President and C.E.O. of Sun
Capital Advisers Trust; Vice President and a Director of
Sun Life Assurance Company of Canada--U.S. Operations
Holdings, Inc., Sun Life of Canada (U.S.) Holdings, Inc.,
Sun Life of Canada (U.S.) Financial Services Holdings,
Inc., and Sun Canada Financial Co.; Vice President,
Investments, and a Director of Sun Life of Canada (U.S.)
Distributors, Inc; and a Director of Massachusetts
Casualty Insurance Company, New London Trust, F.S.B., Sun
Benefit Services Company, Inc., Sun Life Information
Services Ireland Limited, and Clarendon Insurance Agency,
Inc.
C. JAMES PRIEUR, 47, President and Director (1998*)
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02181
He is Senior Vice President and General Manager for
the United States of Sun Life Assurance Company of
Canada; President and a Director of Sun Life Insurance
and Annuity Company of New York; Chairman and a Director
of Sun Life of Canada (U.S.) Distributors, Inc. and Sun
Capital Advisers, Inc.; Chairman, Sun Capital Advisers
Trust, President and a Director of Sun Life of Canada
(U.S.) Holdings, Inc., Sun Life Assurance Company of
Canada-- U.S. Operations Holdings, Inc., Sun Life of
Canada (U.S.) Financial Services Holdings, Inc., Sun
Canada Financial Co., Sun Life of Canada (U.S.) SPE 97-1,
Inc., and Sun Benefit Services Company; and a Director of
Clarendon Insurance Agency, Inc., Massachusetts Casualty
Insurance Company, Sun Life Financial Services, Ltd and
Sun Life Information Services Ireland Limited.
L. BROCK THOMSON, 57, Vice President and Treasurer (1974)
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02181
He is Vice President, Portfolio Management for the
United States of Sun Life Assurance Company of Canada;
Vice President and Treasurer of Sun Life of Canada (U.S.)
Distributors, Inc., Sun Benefit Services Company, Inc.,
Sun
31 SUN LIFE CORPORATE VUL-SM-
<PAGE>
Life Insurance and Annuity Company of New York, and
Clarendon Insurance Agency, Inc.; and Assistant Treasurer
of Massachusetts Casualty Insurance Company.
ROBERT P. VROLYK, 45, Vice President and Actuary (1986)
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02181
He is Vice President, Finance of Sun Life Assurance
Company of Canada; Vice President, Controller and Actuary
of Sun Life Insurance and Annuity Company of New York;
Vice President and a Director of Sun Life of Canada
(U.S.) Holdings, Inc., Sun Canada Financial Co., Sun Life
of Canada (U.S.) Distributors, Inc., Sun Life of Canada
(U.S.) Financial Services Holdings, Inc., and Sun Life
Assurance Company of Canada--U.S. Operations Holdings,
Inc.; Vice President, Treasurer and a Director of Sun
Capital Advisers, Inc.; Treasurer and Chief Financial
Officer, Sun Capital Advisers Trust; Treasurer and a
Director of Sun Life of Canada (U.S.) SPE 97-1, Inc.; and
a Director of Clarendon Insurance Agency, Inc., Sun
Benefit Services Company, Inc., and Sun Life Information
Services Ireland, Limited.
PETER F. DEMUTH, 40, Vice President, Chief Counsel and
Assistant Secretary (1998)
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
He is Vice President and Chief Counsel for the United
States of Sun Life Assurance Company of Canada; and
Assistant Secretary of Sun Life Insurance and Annuity
Company of New York and Sun Capital Advisers Trust.
ELLEN B. KING, 41, Secretary (1998)
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
She is Assistant Counsel of Sun Life Assurance
Company of Canada and Secretary of Sun Life Insurance and
Annuity Company of New York.
Our directors, officers and employees, and those of
our general distributor, Clarendon Insurance Agency,
Inc., are covered under a commercial blanket bond and a
liability policy.
OTHER INFORMATION
STATE REGULATION
We are subject to the laws of Delaware governing life
insurance companies and to regulation by Delaware's
Commissioner of Insurance, whose agents periodically
conduct an examination of our financial condition and
business operations. We are also subject to the insurance
laws and regulations of the jurisdictions in which we are
authorized to do business.
We are required to file an annual statement with the
insurance regulatory authority of those jurisdictions
where we are authorized to do business relating to our
business operations and financial condition as of
December 31st of the preceding year.
32 SUN LIFE CORPORATE VUL-SM-
<PAGE>
LEGAL PROCEEDINGS
There are no pending legal proceedings which would
have an adverse material effect on the Variable Account.
We are engaged in various kinds of routine litigation
which, in our judgment, is not material to the Variable
Account.
EXPERTS
Actuarial matters concerning the policy have been
examined by John E. Coleman, FSA, MAAA, Product Officer
for Corporate Markets of Sun Life Assurance Company of
Canada.
ACCOUNTANTS
The financial statements of the Variable Account and
our financial statements will be filed by amendment.
REGISTRATION STATEMENTS
This prospectus is part of a registration statement
that has been filed with the Securities and Exchange
Commission under the Securities Act of 1933, as amended,
with respect to the Policy. It does not contain all of
the information set forth in the registration statement
and the exhibits filed as part of the registration
statement. You may refer to the registration statement
for additional information about us, the Variable
Account, the underlying Funds and the Policy.
YEAR 2000 COMPLIANCE
During the fourth quarter of 1996, we began a
comprehensive analysis of our information technology
("IT") and non-IT systems, including our hardware,
software, data, data feed products, and internal and
external supporting services, to address the ability of
these systems to process date calculations through the
year 2000 and beyond correctly. We created a full-time
year 2000 project team in early 1997 to manage this
endeavor on a company-wide basis. Our year 2000 project
is periodically reviewed by internal and external
auditors.
To date, relevant systems have been identified and
their components inventoried, needed resolutions have
been documented, timelines and project plans have been
developed, remediation and testing are in process, and
over 70% of our applications have been certified as
compliant. Testing of vendor upgrades not available until
late 1998 is ongoing, as is re-testing of interfaces to
systems certified as compliant and re-testing of mission
critical functions.
In mid-1997, the project team contacted all key
vendors to obtain either their certification for the
products and services provided or their plan to make
those products and services compliant. To date,
approximately 90% of these vendors have responded, and
the project team is in the process of reviewing their
responses. In addition, the project team recently has
opened communications with critical business partners,
such as third-party administrators, investment property
managers, investment mortgage correspondents and others,
with the goal that these partners will continue to be
able to support our objective of assuring year 2000
compliance.
Although we expect all critical systems to be year
2000 compliant before the end of 1999, there can be no
assurance that this result will be completely
33 SUN LIFE CORPORATE VUL-SM-
<PAGE>
achieved. Factors giving rise to this uncertainty include
possible loss of technical resources to perform the work,
failure to identify all susceptible systems, non-
compliance by third-parties whose systems and operations
affect our company, and other similar uncertainties. A
possible worst-case scenario might include one or more of
our significant systems being non-compliant. Such a
scenario could result in material disruption to our
operations. Consequences of such disruptions could
include, among other possibilities, the inability to
update customers' accounts; process payment and other
financial transactions; and report accurate data to
management, customers, regulators and others.
Consequences could also include business interruptions or
shutdowns, reputational harm, increased scrutiny by
regulators, and litigation related to year 2000 issues.
Such potential consequences, depending on their nature
and duration, could have material impact on our results
of operations and financial position.
In order to mitigate the risks to our company of
material adverse operational or financial impacts from
failure to achieve planned year 2000 compliance, we have
established contingency planning at the business unit and
corporate levels. By year-end 1998, we had expended,
cumulatively, approximately $7 million on our year 2000
effort, and we expect to incur a further $4.8 million on
this effort in 1999.
FINANCIAL STATEMENTS
Our financial statements, which are included in this
prospectus, should be considered only as bearing on our
ability to meet our obligations with respect to the death
benefit and our assumption of the mortality and expense
risks. They should not be considered as bearing on the
investment performance of the shares of any Fund held in
the Variable Account.
34 SUN LIFE CORPORATE VUL-SM-
<PAGE>
APPENDIX A
GLOSSARY OF POLICY TERMS
ACCOUNT VALUE--The sum of the amounts in each Sub-Account of the Variable
Account with respect to a Policy, and the amount of the Loan Account.
ANNIVERSARY--The same day in each succeeding year as the day of the year
corresponding to the Issue Date.
APB RIDER--An Additional Protection Benefit Rider (APB Rider) with which the
Policy may be issued to provide additional life insurance coverage under the
Policy.
APB RIDER DEATH BENEFIT--The death benefit under the APB Rider.
APB RIDER FACE AMOUNT--The amount of APB Rider coverage you request, as
specified in your Application, used in determining the Death Benefit.
ATTAINED AGE--The insured's Issue Age plus the number of completed Policy
Years.
BASE DEATH BENEFIT--The death benefit under the Policy, exclusive of any APB
Rider Death Benefit or any other supplemental benefits.
BUSINESS DAY--Any day that we are open for business.
CASH SURRENDER VALUE--The Account Value less by the balance of any
outstanding Policy Debt, plus any Sales Load Refund at Surrender.
CLASS--The risk, underwriting, and substandard table rating, if any,
classification of the insured.
DAILY RISK PERCENTAGE--The applicable daily rate for deduction of the
mortality and expense risk charge.
DEATH BENEFIT--The sum of the Base Death Benefit and any APB Rider Death
Benefit.
DUE PROOF--Such evidence as we may reasonably require to establish that
Policy Proceeds are due and payable.
EFFECTIVE DATE OF COVERAGE--
- Initially, the Investment Start Date;
- with respect to any increase in the Total Face Amount, the Monthly
Anniversary Day that falls on or next follows the date we approve the
supplemental application for such increase; and
- with respect to any decrease in the Total Face Amount, the Monthly
Anniversary Day that falls on or next follows the date we receive your
request.
EXPENSE CHARGES APPLIED TO PREMIUM--The expense charges applied to premium,
consisting of the charges for premium tax, our federal tax obligations with
respect to the Policy, and the sales load.
FUND--A mutual fund in which a Sub-Account invests.
GENERAL ACCOUNT--The assets held by us other than those allocated to the
Sub-Accounts of the Variable Account or any of our other separate accounts.
INVESTMENT START DATE--The date the first premium is applied, which will be
the later of--
- the Issue Date,
- the Business Day we approve the application for a Policy, or
- the Business Day we receive a Premium equal to or in excess of the Minimum
Premium.
ISSUE AGE--The insured's age as of the insured's birthday nearest the Issue
Date.
<PAGE>
ISSUE DATE--A date specified in your Policy, from which Policy
Anniversaries, Policy Years and Policy Months are measured.
LOAN ACCOUNT--An account established for the Policy, the value of which is
the principal amount of any outstanding loan against the Policy, plus credited
interest thereon.
MATURITY--The Anniversary on which the insured's Attained Age is 100.
MINIMUM PREMIUM--The premium amount due and payable as of the Issue Date, as
specified in your Policy. The Minimum Premium varies based on the Class, Issue
Age, and sex of the insured and the Total Face Amount of the Policy.
MONTHLY ANNIVERSARY DAY--The same day in each succeeding month as the day of
the month corresponding to the Issue Date.
MONTHLY COST OF INSURANCE--A deduction made on a monthly basis for the
insurance coverage provided by the Policy.
MONTHLY EXPENSE CHARGE--A per Policy deduction made on a monthly basis for
administration and other expenses.
NET PREMIUM--The amount you pay as the premium minus Expense Charges Applied
to Premium.
OUR PRINCIPAL OFFICE--Sun Life Assurance Company of Canada (U.S.) (Attn:
Corporate Markets), One Sun Life Executive Park, Wellesley Hills, Massachusetts,
02481, or such other address as we may specify to you by written notice.
POLICY DEBT--The principal amount of any outstanding loans against the
Policy, plus accrued but unpaid interest on such loans.
POLICY MONTH--A one-month period commencing on the Issue Date or any Monthly
Anniversary Day and ending on the next Monthly Anniversary Day.
POLICY PROCEEDS--The amount determined in accordance with the terms of this
Policy that is payable at the death of the insured prior to Maturity.
POLICY YEAR--A one-year period commencing on the Issue Date or any
Anniversary and ending on the next Anniversary.
SALES LOAD REFUND AT SURRENDER--The portion of any premium paid in the
Policy Year of surrender that we will refund if you surrender your Policy in the
first three Policy Years.
SEC--Securities and Exchange Commission.
SERVICE CENTER--Andesa TPA, Inc., 1605 N. Cedar Crest Blvd., Suite 502,
Allentown, Pennsylvania, 18104-2351, (610) 821-8980, or such other service
center or address as we may hereafter specify to you by written notice.
SPECIFIED FACE AMOUNT--The amount of life insurance coverage you request, as
specified in your Policy, exclusive of any APB Rider coverage, used in
determining the Death Benefit.
SUB-ACCOUNTS--Sub-Accounts into which the assets of the Variable Account are
divided, each of which corresponds to an investment choice available to you.
TARGET PREMIUM--An amount of premium specified as such in your Policy, used
to determine our sales load charges.
TOTAL FACE AMOUNT--The sum of the Specified Face Amount and the APB Rider
Face Amount.
UNIT--A unit of measurement that we use to calculate the value of each
Sub-Account.
A-2
<PAGE>
UNIT VALUE--The value of each Unit of assets in a Sub-Account.
VALUATION DATE--Any day that benefits vary and on which we, the applicable
Fund, and the New York Stock Exchange are open for business and any other day as
may be required by the applicable rules and regulations of the Securities and
Exchange Commission.
VALUATION PERIOD--A period of time from one to the next determination of
Unit Values. We will determine Unit Values for each Valuation Date as of the
close of the New York Stock Exchange on that Valuation Date.
VARIABLE ACCOUNT--Sun Life of Canada (U.S.) Variable Account G, one of our
separate accounts established for purposes including the funding of variable
insurance benefits payable under the Policy.
A-3
<PAGE>
APPENDIX B
FEES AND EXPENSES OF THE FUNDS
The table shown below illustrates the fees and expenses paid by the Funds as
a percentage of average net assets based on information for the year ended
December 31, 1997. These fees and expenses are more fully described in the Fund
Prospectuses which accompany this prospectus. The data regarding the Funds' fees
and expenses were provided by the Funds and have not been independently verified
by us.
ANNUAL FUND EXPENSES
(AS A PERCENTAGE OF FUND AVERAGE NET ASSETS)
<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL ANNUAL
FEES EXPENSES EXPENSES
---------- -------- ------------
<S> <C> <C> <C>
DREYFUS VARIABLE INVESTMENT FUND
- - CAPITAL APPRECIATION PORTFOLIO 0.75% 0.05% 0.80%
- - GROWTH AND INCOME PORTFOLIO 0.75% 0.05% 0.80%
- - QUALITY BOND PORTFOLIO 0.65% 0.10% 0.75%
- - SMALL CAP PORTFOLIO 0.75% 0.03% 0.78%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
- - VIP EQUITY-INCOME PORTFOLIO 0.50% 0.08% 0.58%(1)
- - VIP GROWTH PORTFOLIO 0.60% 0.09% 0.69%(1)
- - VIP HIGH INCOME PORTFOLIO 0.59% 0.12% 0.71%
- - VIP MONEY MARKET PORTFOLIO 0.21% 0.10% 0.31%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II
- - VIP II ASSET MANAGER: GROWTH PORTFOLIO 0.60% 0.17% 0.77%
- - VIP II CONTRAFUND PORTFOLIO 0.60% 0.11% 0.71%(1)
- - VIP II INDEX 500 PORTFOLIO 0.24% 0.04% 0.28%(2)
- - VIP II INVESTMENT GRADE BOND PORTFOLIO 0.44% 0.14% 0.58%
J.P. MORGAN SERIES TRUST II
- - J.P. MORGAN BOND PORTFOLIO 0.30% 0.45% 0.75%(5)
- - J.P. MORGAN EQUITY PORTFOLIO 0.40% 0.50% 0.90%(5)
- - J.P. MORGAN SMALL COMPANY PORTFOLIO 0.60% 0.55% 1.15%(5)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL ANNUAL
FEES EXPENSES EXPENSES
---------- -------- ------------
<S> <C> <C> <C>
MFS/SUN LIFE SERIES TRUST
- - CAPITAL APPRECIATION SERIES 0.73% 0.05% 0.78%
- - CONSERVATIVE GROWTH SERIES 0.55% 0.06% 0.61%
- - EMERGING GROWTH SERIES 0.73% 0.08% 0.81%
- - GOVERNMENT SECURITIES SERIES 0.55% 0.08% 0.63%
- - RESEARCH SERIES 0.72% 0.07% 0.79%
- - TOTAL RETURN SERIES 0.66% 0.05% 0.71%
- - TRUST UTILITIES SERIES 0.75% 0.11% 0.86%
- - WORLD GROWTH SERIES 0.88% 0.14% 1.02%
NEUBERGERBERMAN ADVISERS MANAGEMENT TRUST
- - LIMITED MATURITY BOND PORTFOLIO 0.65% 0.12% 0.77%(3)
- - MID-CAP GROWTH PORTFOLIO 0.60% 0.40% 1.00%(3)(4)
- - PARTNERS PORTFOLIO 0.80% 0.06% 0.86%(3)
T. ROWE PRICE EQUITY SERIES, INC.
- - EQUITY INCOME PORTFOLIO 0.85% 0.00% 0.85%
- - NEW AMERICA GROWTH PORTFOLIO 0.85% 0.00% 0.85%
TEMPLETON VARIABLE PRODUCTS SERIES FUND
- - TEMPLETON STOCK FUND: CLASS 1 0.69% 0.19% 0.88%(6)
</TABLE>
- ------------------------
(1) A portion of the brokerage commissions that certain funds pay was used to
reduce funds expenses. In addition, certain funds have entered into
arrangements with their custodian and transfer agent whereby interest earned
on uninvested cash balances was used to reduce custodian and transfer agent
expenses. Including these reductions, the total operating expenses presented
in the table would have been .56% for VIP Equity-Income Portfolio, .67% for
VIP Growth Portfolio and .71% for VIP II Contrafund Portfolio.
(2) FMR agreed to reimburse a portion of VIP II Index 500 Portfolio's expenses
during the period. Without this reimbursement, the fund's management fee,
other expenses and total expenses would have been .28%, .15% and .43%
respectively.
(3) NeubergerBerman Advisers Management Trust is divided into portfolios
("Portfolios"), each of which invests all of its net investable assets in a
corresponding series ("Series") of Advisers Managers Trust. The figures
reported under "Management Fees" include the aggregate of the administration
fees paid by the Portfolio and the management fees paid by its corresponding
Series. Similarly, "Other Expenses" includes all other expenses of the
Portfolio and its corresponding Series.
(4) Expenses reflect expense reimbursement NBMI has undertaken to reimburse the
Mid-Cap Growth Portfolio for certain operating expenses, including the
compensation of NBMI and excluding taxes, interest, extraordinary expenses,
brokerage commissions and transaction costs, that exceed, in the aggregate,
1% of the Mid-Cap Growth Portfolio's average daily net asset value. Absent
such reimbursement, the Total Annual Expenses for the year ended December
31, 1997 was estimated to be 1.25% for the Mid-Cap Growth Portfolio. These
expense reimbursement policies are subject to termination upon 60
B-2
<PAGE>
days written notice with respect to the Mid-Cap Growth Portfolio, and there
can be no assurance that these policies will be continued thereafter. The
Mid-Cap Growth Portfolio commenced operations on November 3, 1997;
therefore, the expense figures for the Portfolio are estimated.
(5) This information reflects current fees and expenses, restated to reflect an
agreement by Morgan Guaranty Trust Company of New York, an affiliate of J.P.
Morgan Investment Management Inc., to reimburse the Fund to the extent
certain expenses exceed in any fiscal year 0.75%, 0.90% and 1.15% of the
average daily net assets of J.P. Morgan Bond Portfolio, J.P. Morgan Equity
Portfolio and J.P. Morgan Small Company Portfolio, respectively. Without
such reimbursements, total fund annual expenses would have been 1.91% for
the J.P. Morgan Bond Portfolio, 2.31% for the J.P. Morgan Equity Portfolio
and 3.81% for the J.P. Morgan Small Company Portfolio.
(6) Management fees and total operating expenses have been restated to reflect
the management fee schedule approved by shareholders and effective May 1,
1997. See fund prospectus for details. Actual management fees and total fund
operating expenses during 1997 were lower.
B-3
<PAGE>
APPENDIX C
HYPOTHETICAL ILLUSTRATIONS OF CASH SURRENDER VALUES,
ACCOUNT VALUES AND DEATH BENEFITS
The Tables on the following pages illustrate the way in which a Policy's
Death Benefit, Account Value and Cash Surrender Value could vary over an
extended period of time. They assume that all premiums are allocated to and
remain in the Variable Account for the entire period shown and are based on
hypothetical gross annual investment returns for the Funds (i.e., investment
income and capital gains and losses, realized or unrealized) equivalent to
constant gross annual rates of 0%, 6%, and 12% over the periods indicated.
All Tables illustrate a Policy where the insured is a male, Issue Age 45, in
the preferred (non-tobacco) rate class. These illustrations all assume a Total
Face Amount of $500,000 and payment of an annual premium of $12,600. Tables 1,
2, 5 and 6 assume a Specified Face Amount of $500,000. Tables 3 and 4 assume a
Specified Face Amount of $50,000 and an APB Rider Face Amount of $450,000.
Tables 1 and 2 are based on guaranteed issue underwriting, Death Benefit Option
A, the Cash Value Accumulation Test and a Specified Face Amount of $500,000.
Tables 3 and 4 are based on the same assumptions, except that the Total Face
Amount reflects a Specified Face Amount of $50,000 and an APB Rider Face Amount
of $450,000. Tables 5 and 6 are based on full medical underwriting, Death
Benefit Option B, the Guideline Premium Test, and a Specified Face Amount of
$500,000. Tables 1, 3 and 5 differ from Tables 2, 4 and 6, respectively, only in
that Tables 1, 3 and 5 reflect the deduction of current policy charges as
outlined below, while Tables 2, 4 and 6 reflect the deduction of policy charges
at the guaranteed maximum rates (except that Kentucky policyowners will have
higher premium tax deductions than those reflected).
The Account Values and Death Benefits would be different from those shown if
the gross annual investment rates of return averaged 0%, 6%, and 12% over a
period of years, but fluctuated above or below such averages for individual
Policy Years. The values would also be different depending on the allocation of
a Policy's total Account Value among the Sub-Accounts of the Variable Account,
if the actual rates of return averaged 0%, 6% or 12%, but the rates of each Fund
varied above and below such averages.
The amounts shown for the Death Benefits and Account Values take into
account all charges and deductions imposed under the Policy based on the
assumptions set forth in the Tables. These include: Expense Charges Applied to
Premium, assuming a premium tax rate of 2% for Tables 1, 3 and 5 and 4% for
Tables 2, 4 and 6. The Daily Risk Percentage charged against the Separate
Account for mortality and expense risks, at an effective annual rate of 0.75%
for the first 10 Policy Years and 0.35% thereafter for Tables 1, 3 and 5, and
0.90% for all Policy Years for Tables 2, 4 and 6; the Monthly Expense Charge of
$13.75 per month for the first Policy Year and $7.50 per month thereafter for
Tables 1, 3 and 5, and $13.75 per month for all Policy Years for Tables 2, 4,
and 6; and the Monthly Cost of Insurance based on current charges for Tables 1,
3 and 5, and guaranteed charges for Tables 2, 4, and 6.
The amounts shown in the Tables also take into account the Funds' advisory
fees and operating expenses, which are assumed to be at an annual rate of
0.7579% of the average daily net assets of each Fund. This is based upon a
simple average of the advisory fees and expenses of all the Funds for the most
recent fiscal year taking into account any applicable expense caps or expense
reimbursement arrangements. Actual fees and expenses of the Funds may be more or
less than 0.7579%, will vary from year to year, and will depend upon how Account
Value is allocated among the Sub-Accounts. See the individual prospectus for
each Fund for more information on fund expenses.
The gross annual rates of investment return of 0%, 6% and 12% correspond to
net annual rates of -1.50%, 4.46%, and 10.41%, respectively, during the first 10
Policy Years and -1.10%, 4.88%, and 10.85%, respectively, thereafter taking into
account the current Daily Risk Percentage and the assumed 0.7579%
C-1
<PAGE>
charge for the Funds' advisory fees and operating expenses; and -1.64%, 4.30%
and 10.25%, respectively taking into account the guaranteed Daily Risk
Percentage.
The hypothetical returns shown in the Tables do not reflect any charges for
income taxes against the Variable Account since no charges are currently made.
If, in the future, such charges are made, in order to produce the illustrated
death benefits and cash values, the gross annual investment rate of return would
have to exceed 0%, 6%, or 12% by a sufficient amount to cover the tax charges.
The second column of each Table shows the amount which would accumulate if
an amount equal to each premium were invested and earned interest, after taxes,
at 5% per year, compounded annually.
We will furnish upon request a comparable Table using any specific set of
circumstances. In addition to a Table assuming policy charges at their maximum,
we will furnish a Table assuming current policy charges.
C-2
<PAGE>
TABLE 1
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
SUN LIFE CORPORATE VUL
MALE, PREFERRED, GI, AGE 45
$500,000 SPECIFIED FACE AMOUNT
ANNUAL PREMIUM: $12,600.00
DEATH BENEFIT OPTION A
CASH VALUE ACCUMULATION TEST
CURRENT POLICY CHARGES
<TABLE>
<CAPTION>
HYPOTHETICAL 0% HYPOTHETICAL 6% HYPOTHETICAL 12%
GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN
PREMIUMS NET -1.50% NET 4.46% NET 10.41%
PAID PLUS ----------------------------------- ------------------------------ ---------------------------------
INTEREST CASH CASH CASH
POLICY AT 5% SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------ --------- --------- --------- --------- --------- ------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 13,230 10,925 10,169 500,000 11,565 10,809 500,000 12,205 11,449 500,000
2 27,121 20,652 19,896 500,000 22,559 21,803 500,000 24,544 23,788 500,000
3 41,708 30,028 29,272 500,000 33,838 33,082 500,000 37,963 37,207 500,000
4 57,023 38,382 38,382 500,000 44,743 44,743 500,000 51,908 51,908 500,000
5 73,104 47,273 47,273 500,000 56,849 56,849 500,000 68,076 68,076 500,000
6 89,989 55,984 55,984 500,000 69,459 69,459 500,000 85,909 85,909 500,000
7 107,719 64,541 64,541 500,000 82,623 82,623 500,000 105,612 105,612 500,000
8 126,335 74,036 74,036 500,000 97,526 97,526 500,000 128,614 128,614 500,000
9 145,881 83,322 83,322 500,000 113,051 113,051 500,000 154,010 154,010 500,000
10 166,406 92,417 92,417 500,000 129,247 129,247 500,000 182,082 182,082 500,000
11 187,956 101,690 101,690 500,000 146,701 146,701 500,000 213,952 213,952 500,000
12 210,584 110,724 110,724 500,000 164,925 164,925 500,000 249,258 249,258 529,530
13 234,343 119,519 119,519 500,000 183,971 183,971 500,000 288,135 288,135 595,781
14 259,290 128,072 128,072 500,000 203,890 203,890 500,000 330,915 330,915 666,247
15 285,484 136,427 136,427 500,000 224,780 224,780 500,000 378,025 378,025 741,383
16 312,989 144,444 144,444 500,000 246,600 246,600 500,000 429,745 429,745 821,306
17 341,868 152,154 152,154 500,000 269,451 269,451 502,026 486,547 486,547 906,507
18 372,191 159,571 159,571 500,000 293,226 293,226 532,841 548,934 548,934 997,503
19 404,031 166,653 166,653 500,000 317,871 317,871 563,649 617,385 617,385 1,094,747
20 437,463 173,416 173,416 500,000 343,427 343,427 594,561 692,507 692,507 1,198,907
Age 60 285,484 136,427 136,427 500,000 224,780 224,780 500,000 378,025 378,025 741,383
Age 65 437,463 173,416 173,416 500,000 343,427 343,427 594,561 692,507 692,507 1,198,907
Age 70 631,430 201,297 201,297 500,000 485,055 485,055 751,460 1,190,498 1,190,498 1,844,351
Age 75 878,986 216,399 216,399 500,000 650,882 650,882 914,801 1,969,292 1,969,292 2,767,801
</TABLE>
(1) Assumes a $12,600.00 premium is paid at the beginning of each Policy Year.
Values will be different if premiums are paid with a different frequency or
in different amounts.
(2) Assumes that no policy loans have been made. Excessive loans or partial
surrenders may cause this Policy to lapse due to insufficient Policy Value.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN ARE ILLUSTRATIVE ONLY, AND
SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF
RETURN. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN, AND WILL
DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS BY A POLICY
OWNER, AND THE DIFFERENT INVESTMENT RATES OF RETURN FOR THE FUNDS. THE CASH
SURRENDER VALUE AND DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL RATES OF INVESTMENT RETURN AVERAGED 0%, 6%, AND 12% OVER A
PERIOD OF YEARS, BUT FLUCTUATED ABOVE AND BELOW THOSE AVERAGES FOR INDIVIDUAL
POLICY YEARS. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY LOANS OR PARTIAL
SURRENDERS WERE MADE. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL
INVESTMENT RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
C-3
<PAGE>
TABLE 2
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
SUN LIFE CORPORATE VUL
MALE, PREFERRED, GI, AGE 45
$500,000 SPECIFIED FACE AMOUNT
ANNUAL PREMIUM: $12,600.00
DEATH BENEFIT OPTION A
CASH VALUE ACCUMULATION TEST
GUARANTEED POLICY CHARGES
<TABLE>
<CAPTION>
HYPOTHETICAL 0% HYPOTHETICAL 6% HYPOTHETICAL 12%
GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN
PREMIUMS NET -1.64% NET 4.30% NET 10.25%
PAID PLUS ----------------------------------- ------------------------------ ---------------------------------
INTEREST CASH CASH CASH
POLICY AT 5% SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------ --------- --------- --------- --------- --------- ------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 13,230 9,035 8,279 500,000 9,615 8,859 500,000 10,197 9,441 500,000
2 27,121 17,038 16,282 500,000 18,716 17,960 500,000 20,466 19,710 500,000
3 41,708 24,759 24,003 500,000 28,062 27,306 500,000 31,648 30,892 500,000
4 57,023 31,443 31,443 500,000 36,908 36,908 500,000 43,083 43,083 500,000
5 73,104 38,587 38,587 500,000 46,763 46,763 500,000 56,382 56,382 500,000
6 89,989 45,433 45,433 500,000 56,880 56,880 500,000 70,910 70,910 500,000
7 107,719 51,949 51,949 500,000 67,242 67,242 500,000 86,777 86,777 500,000
8 126,335 59,209 59,209 500,000 79,003 79,003 500,000 105,347 105,347 500,000
9 145,881 66,084 66,084 500,000 91,054 91,054 500,000 125,687 125,687 500,000
10 166,406 72,545 72,545 500,000 103,389 103,389 500,000 147,988 147,988 500,000
11 187,956 78,581 78,581 500,000 116,019 116,019 500,000 172,492 172,492 500,000
12 210,584 84,172 84,172 500,000 128,954 128,954 500,000 199,472 199,472 500,000
13 234,343 89,315 89,315 500,000 142,223 142,223 500,000 229,258 229,258 500,000
14 259,290 93,995 93,995 500,000 155,848 155,848 500,000 262,078 262,078 527,654
15 285,484 98,192 98,192 500,000 169,852 169,852 500,000 297,664 297,664 583,779
16 312,989 101,864 101,864 500,000 184,249 184,249 500,000 336,191 336,191 642,509
17 341,868 104,962 104,962 500,000 199,056 199,056 500,000 377,861 377,861 704,010
18 372,191 107,422 107,422 500,000 214,286 214,286 500,000 422,880 422,880 768,443
19 404,031 109,165 109,165 500,000 229,955 229,955 500,000 471,454 471,454 835,982
20 437,463 110,111 110,111 500,000 246,098 246,098 500,000 523,803 523,803 906,837
Age 60 285,484 98,192 98,192 500,000 169,852 169,852 500,000 297,664 297,664 583,779
Age 65 437,463 110,111 110,111 500,000 246,098 246,098 500,000 523,803 523,803 906,837
Age 70 631,430 100,217 100,217 500,000 335,960 335,960 520,478 851,609 851,609 1,319,336
Age 75 878,986 51,375 51,375 500,000 433,917 433,917 609,861 1,316,591 1,316,591 1,850,442
</TABLE>
(1) Assumes a $12,600.00 premium is paid at the beginning of each Policy Year.
Values will be different if premiums are paid with a different frequency or
in different amounts.
(2) Assumes that no policy loans have been made. Excessive loans or partial
surrenders may cause this Policy to lapse due to insufficient Policy Value.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN ARE ILLUSTRATIVE ONLY, AND
SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF
RETURN. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN, AND WILL
DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS BY A POLICY
OWNER, AND THE DIFFERENT INVESTMENT RATES OF RETURN FOR THE FUNDS. THE CASH
SURRENDER VALUE AND DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL RATES OF INVESTMENT RETURN AVERAGED 0%, 6%, AND 12% OVER A
PERIOD OF YEARS, BUT FLUCTUATED ABOVE AND BELOW THOSE AVERAGES FOR INDIVIDUAL
POLICY YEARS. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY LOANS OR PARTIAL
SURRENDERS WERE MADE. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL
INVESTMENT RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
C-4
<PAGE>
TABLE 3
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
SUN LIFE CORPORATE VUL
MALE, PREFERRED, GI, AGE 45
$50,000 SPECIFIED FACE AMOUNT
$450,000 APB RIDER FACE AMOUNT
ANNUAL PREMIUM: $12,600.00
DEATH BENEFIT OPTION A
CASH VALUE ACCUMULATION TEST
CURRENT POLICY CHARGES
<TABLE>
<CAPTION>
HYPOTHETICAL 0% HYPOTHETICAL 6% HYPOTHETICAL 12%
GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN
PREMIUMS NET -1.50% NET 4.46% NET 10.41%
PAID PLUS ----------------------------------- ------------------------------ ---------------------------------
INTEREST CASH CASH CASH
POLICY AT 5% SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------ --------- --------- --------- --------- --------- ------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 13,230 11,187 10,800 500,000 11,865 11,477 500,000 12,542 12,155 500,000
2 27,121 21,536 21,149 500,000 23,560 23,173 500,000 25,665 25,278 500,000
3 41,708 31,528 31,141 500,000 35,573 35,186 500,000 39,951 39,564 500,000
4 57,023 40,860 40,860 500,000 47,616 47,616 500,000 55,225 55,225 500,000
5 73,104 50,353 50,353 500,000 60,529 60,529 500,000 72,458 72,458 500,000
6 89,989 59,660 59,660 500,000 73,986 73,986 500,000 91,471 91,471 500,000
7 107,719 68,805 68,805 500,000 88,038 88,038 500,000 112,482 112,482 500,000
8 126,335 78,251 78,251 500,000 103,201 103,201 500,000 136,225 136,225 500,000
9 145,881 87,490 87,490 500,000 119,002 119,002 500,000 162,446 162,446 500,000
10 166,406 96,538 96,538 500,000 135,487 135,487 500,000 191,432 191,432 500,000
11 187,956 105,783 105,783 500,000 153,273 153,273 500,000 224,361 224,361 500,000
12 210,584 114,791 114,791 500,000 171,850 171,850 500,000 260,752 260,752 553,949
13 234,343 123,562 123,562 500,000 191,271 191,271 500,000 300,807 300,807 621,982
14 259,290 132,093 132,093 500,000 211,590 211,590 500,000 344,882 344,882 694,366
15 285,484 140,427 140,427 500,000 232,904 232,904 500,000 393,417 393,417 771,569
16 312,989 148,428 148,428 500,000 255,180 255,180 500,000 446,700 446,700 853,709
17 341,868 156,125 156,125 500,000 278,446 278,446 518,785 505,216 505,216 941,292
18 372,191 163,532 163,532 500,000 302,594 302,594 549,864 569,486 569,486 1,034,850
19 404,031 170,607 170,607 500,000 327,624 327,624 580,943 640,002 640,002 1,134,851
20 437,463 177,367 177,367 500,000 353,578 353,578 612,134 717,388 717,388 1,241,982
Age 60 285,484 140,427 140,427 500,000 232,904 232,904 500,000 393,417 393,417 771,569
Age 65 437,463 177,367 177,367 500,000 353,578 353,578 612,134 717,388 717,388 1,241,982
Age 70 631,430 205,313 205,313 500,000 497,380 497,380 770,555 1,230,362 1,230,362 1,906,110
Age 75 878,986 220,673 220,673 500,000 665,703 665,703 935,632 2,032,540 2,032,540 2,856,695
</TABLE>
(1) Assumes a $12,600.00 premium is paid at the beginning of each Policy Year.
Values will be different if premiums are paid with a different frequency or
in different amounts.
(2) Assumes that no policy loans have been made. Excessive loans or partial
surrenders may cause this Policy to lapse due to insufficient Policy Value.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN ARE ILLUSTRATIVE ONLY, AND
SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF
RETURN. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN, AND WILL
DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS BY A POLICY
OWNER, AND THE DIFFERENT INVESTMENT RATES OF RETURN FOR THE FUNDS. THE CASH
SURRENDER VALUE AND DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL RATES OF INVESTMENT RETURN AVERAGED 0%, 6%, AND 12% OVER A
PERIOD OF YEARS, BUT FLUCTUATED ABOVE AND BELOW THOSE AVERAGES FOR INDIVIDUAL
POLICY YEARS. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY LOANS OR PARTIAL
SURRENDERS WERE MADE. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL
INVESTMENT RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
C-5
<PAGE>
TABLE 4
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
SUN LIFE CORPORATE VUL
MALE, PREFERRED, GI, AGE 45
$50,000 SPECIFIED FACE AMOUNT
$450,000 APB RIDER FACE AMOUNT
ANNUAL PREMIUM: $12,600.00
DEATH BENEFIT OPTION A
CASH VALUE ACCUMULATION TEST
GUARANTEED POLICY CHARGES
<TABLE>
<CAPTION>
HYPOTHETICAL 0% HYPOTHETICAL 6% HYPOTHETICAL 12%
GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN
PREMIUMS NET -1.64% NET 4.30% NET 10.25%
PAID PLUS ----------------------------------- ------------------------------ ---------------------------------
INTEREST CASH CASH CASH
POLICY AT 5% SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------ --------- --------- --------- --------- --------- ------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 13,230 8,789 8,402 500,000 9,393 9,006 500,000 9,999 9,612 500,000
2 27,121 16,874 16,487 500,000 18,612 18,225 500,000 20,426 20,039 500,000
3 41,708 24,659 24,271 500,000 28,069 27,682 500,000 31,776 31,389 500,000
4 57,023 31,756 31,756 500,000 37,390 37,390 500,000 43,766 43,766 500,000
5 73,104 38,922 38,922 500,000 47,345 47,345 500,000 57,273 57,273 500,000
6 89,989 45,764 45,764 500,000 57,557 57,557 500,000 72,042 72,042 500,000
7 107,719 52,245 52,245 500,000 68,005 68,005 500,000 88,190 88,190 500,000
8 126,335 58,801 58,801 500,000 79,173 79,173 500,000 106,387 106,387 500,000
9 145,881 64,934 64,934 500,000 90,587 90,587 500,000 126,348 126,348 500,000
10 166,406 70,605 70,605 500,000 102,236 102,236 500,000 148,279 148,279 500,000
11 187,956 75,798 75,798 500,000 114,133 114,133 500,000 172,443 172,443 500,000
12 210,584 80,484 80,484 500,000 126,285 126,285 500,000 199,142 199,142 500,000
13 234,343 84,654 84,654 500,000 138,721 138,721 500,000 228,745 228,745 500,000
14 259,290 88,281 88,281 500,000 151,463 151,463 500,000 261,507 261,507 526,504
15 285,484 91,335 91,335 500,000 164,536 164,536 500,000 297,044 297,044 582,562
16 312,989 93,755 93,755 500,000 177,951 177,951 500,000 335,516 335,516 641,221
17 341,868 95,472 95,472 500,000 191,722 191,722 500,000 377,129 377,129 702,646
18 372,191 96,392 96,392 500,000 205,859 205,859 500,000 422,086 422,086 766,999
19 404,031 96,401 96,401 500,000 220,378 220,378 500,000 470,592 470,592 834,454
20 437,463 95,381 95,381 500,000 235,311 235,311 500,000 522,869 522,869 905,220
Age 60 285,484 91,335 91,335 500,000 164,536 164,536 500,000 297,044 297,044 582,562
Age 65 437,463 95,381 95,381 500,000 235,311 235,311 500,000 522,869 522,869 905,220
Age 70 631,430 70,356 70,356 500,000 319,053 319,053 500,000 850,224 850,224 1,317,190
Age 75 878,986 0 0 0 415,224 415,224 583,589 1,314,570 1,314,570 1,847,601
</TABLE>
(1) Assumes a $12,600.00 premium is paid at the beginning of each Policy Year.
Values will be different if premiums are paid with a different frequency or
in different amounts.
(2) Assumes that no policy loans have been made. Excessive loans or partial
surrenders may cause this Policy to lapse due to insufficient Policy Value.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN ARE ILLUSTRATIVE ONLY, AND
SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF
RETURN. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN, AND WILL
DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS BY A POLICY
OWNER, AND THE DIFFERENT INVESTMENT RATES OF RETURN FOR THE FUNDS. THE CASH
SURRENDER VALUE AND DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL RATES OF INVESTMENT RETURN AVERAGED 0%, 6%, AND 12% OVER A
PERIOD OF YEARS, BUT FLUCTUATED ABOVE AND BELOW THOSE AVERAGES FOR INDIVIDUAL
POLICY YEARS. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY LOANS OR PARTIAL
SURRENDERS WERE MADE. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL
INVESTMENT RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
C-6
<PAGE>
TABLE 5
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
SUN LIFE CORPORATE VUL
MALE, PREFERRED, MI, AGE 45
$500,000 SPECIFIED FACE AMOUNT
ANNUAL PREMIUM: $12,600.00
DEATH BENEFIT OPTION B
GUIDELINE PREMIUM TEST
CURRENT POLICY CHARGES
<TABLE>
<CAPTION>
HYPOTHETICAL 0% HYPOTHETICAL 6% HYPOTHETICAL 12%
GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN
PREMIUMS NET -1.50% NET 4.46% NET 10.41%
PAID PLUS ----------------------------------- ------------------------------ ---------------------------------
INTEREST CASH CASH CASH
POLICY AT 5% SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------ --------- --------- --------- --------- --------- ------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 13,230 11,109 10,353 510,353 11,753 10,997 510,997 12,397 11,641 511,641
2 27,121 21,090 20,334 520,334 23,017 22,261 522,261 25,023 24,267 524,267
3 41,708 30,766 30,010 530,010 34,625 33,869 533,869 38,799 38,043 538,043
4 57,023 39,423 39,423 539,423 45,871 45,871 545,871 53,129 53,129 553,129
5 73,104 48,593 48,593 548,593 58,305 58,305 558,305 69,679 69,679 569,679
6 89,989 57,638 57,638 557,638 71,305 71,305 571,305 87,965 87,965 587,965
7 107,719 66,458 66,458 566,458 84,793 84,793 584,793 108,062 108,062 608,062
8 126,335 76,142 76,142 576,142 99,943 99,943 599,943 131,374 131,374 631,374
9 145,881 85,557 85,557 585,557 115,639 115,639 615,639 156,982 156,982 656,982
10 166,406 94,688 94,688 594,688 131,888 131,888 631,888 185,107 185,107 685,107
11 187,956 103,907 103,907 603,907 149,262 149,262 649,262 216,824 216,824 716,824
12 210,584 112,775 112,775 612,775 167,226 167,226 667,226 251,719 251,719 751,719
13 234,343 121,251 121,251 621,251 185,765 185,765 685,765 290,093 290,093 790,093
14 259,290 129,306 129,306 629,306 204,870 204,870 704,870 332,287 332,287 832,287
15 285,484 136,950 136,950 636,950 224,576 224,576 724,576 378,720 378,720 878,720
16 312,989 143,954 143,954 643,954 244,672 244,672 744,672 429,609 429,609 929,609
17 341,868 150,481 150,481 650,481 265,336 265,336 765,336 485,599 485,599 985,599
18 372,191 156,541 156,541 656,541 286,604 286,604 786,604 547,251 547,251 1,047,251
19 404,031 162,058 162,058 662,058 308,417 308,417 808,417 615,092 615,092 1,115,091
20 437,463 167,047 167,047 667,047 330,816 330,816 830,816 689,805 689,805 1,189,805
Age 60 285,484 136,950 136,950 636,950 224,576 224,576 724,576 378,720 378,720 878,720
Age 65 437,463 167,047 167,047 667,047 330,816 330,816 830,816 689,805 689,805 1,189,805
Age 70 631,430 181,621 181,621 681,621 449,694 449,694 949,694 1,192,374 1,192,374 1,692,374
Age 75 878,986 172,831 172,831 672,831 574,648 574,648 1,074,647 2,004,075 2,004,075 2,504,075
</TABLE>
(1) Assumes a $12,600.00 premium is paid at the beginning of each Policy Year.
Values will be different if premiums are paid with a different frequency or
in different amounts.
(2) Assumes that no policy loans have been made. Excessive loans or partial
surrenders may cause this Policy to lapse due to insufficient Policy Value.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN ARE ILLUSTRATIVE ONLY, AND
SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF
RETURN. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN, AND WILL
DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS BY A POLICY
OWNER, AND THE DIFFERENT INVESTMENT RATES OF RETURN FOR THE FUNDS. THE CASH
SURRENDER VALUE AND DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL RATES OF INVESTMENT RETURN AVERAGED 0%, 6%, AND 12% OVER A
PERIOD OF YEARS, BUT FLUCTUATED ABOVE AND BELOW THOSE AVERAGES FOR INDIVIDUAL
POLICY YEARS. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY LOANS OR PARTIAL
SURRENDERS WERE MADE. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL
INVESTMENT RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
C-7
<PAGE>
TABLE 6
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
SUN LIFE CORPORATE VUL
MALE, PREFERRED, GI, AGE 45
$50,000 SPECIFIED FACE AMOUNT
ANNUAL PREMIUM: $12,600.00
DEATH BENEFIT OPTION B
GUIDELINE PREMIUM TEST
GUARANTEED POLICY CHARGES
<TABLE>
<CAPTION>
HYPOTHETICAL 0% HYPOTHETICAL 6% HYPOTHETICAL 12%
GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN GROSS INVESTMENT RETURN
PREMIUMS NET -1.64% NET 4.30% NET 10.25%
PAID PLUS ----------------------------------- ------------------------------ ---------------------------------
INTEREST CASH CASH CASH
POLICY AT 5% SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT DEATH SURRENDER ACCOUNT DEATH
YEAR PER YEAR VALUE VALUE BENEFIT VALUE VALUE BENEFIT VALUE VALUE BENEFIT
------ --------- --------- --------- --------- --------- ------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 13,230 8,992 8,236 508,236 9,569 8,813 508,813 10,148 9,392 509,392
2 27,121 16,908 16,152 516,152 18,573 17,817 517,817 20,309 19,553 519,553
3 41,708 24,496 23,740 523,740 27,760 27,004 527,004 31,301 30,545 530,545
4 57,023 30,995 30,995 530,995 36,372 36,372 536,372 42,445 42,445 542,445
5 73,104 37,897 37,897 537,897 45,903 45,903 545,903 55,318 55,318 555,318
6 89,989 44,437 44,437 544,437 55,589 55,589 555,589 69,250 69,250 569,250
7 107,719 50,577 50,577 550,577 65,391 65,391 565,391 84,300 84,300 584,300
8 126,335 57,372 57,372 557,372 76,428 76,428 576,428 101,762 101,762 601,762
9 145,881 63,683 63,683 563,683 87,557 87,557 587,557 120,622 120,622 620,622
10 166,406 69,468 69,468 569,468 98,732 98,732 598,731 140,969 140,969 640,969
11 187,956 74,705 74,705 574,705 109,922 109,922 609,922 162,926 162,926 662,926
12 210,584 79,364 79,364 579,364 121,088 121,088 621,088 186,614 186,614 686,614
13 234,343 83,435 83,435 583,435 132,208 132,208 632,208 212,190 212,190 712,190
14 259,290 86,891 86,891 586,891 143,246 143,246 643,246 239,811 239,811 739,811
15 285,484 89,704 89,704 589,704 154,155 154,155 654,155 269,645 269,645 769,645
16 312,989 91,819 91,819 591,819 164,864 164,864 664,864 301,850 301,850 801,850
17 341,868 93,172 93,172 593,172 175,287 175,287 675,287 336,590 336,590 836,590
18 372,191 93,682 93,682 593,682 185,316 185,316 685,316 374,025 374,025 874,025
19 404,031 93,253 93,253 593,253 194,819 194,819 694,819 414,316 414,316 914,316
20 437,463 91,795 91,795 591,795 203,667 203,667 703,667 457,644 457,644 957,644
Age 60 285,484 89,704 89,704 589,704 154,155 154,155 654,155 269,645 269,645 769,645
Age 65 437,463 91,795 91,795 591,795 203,667 203,667 703,667 457,644 457,644 957,644
Age 70 631,430 66,612 66,612 566,612 233,730 233,730 733,730 728,320 728,320 1,228,320
Age 75 878,986 625 625 500,625 221,966 221,966 721,966 1,113,462 1,113,462 1,613,462
</TABLE>
(1) Assumes a $12,600.00 premium is paid at the beginning of each Policy Year.
Values will be different if premiums are paid with a different frequency or
in different amounts.
(2) Assumes that no policy loans have been made. Excessive loans or partial
surrenders may cause this Policy to lapse due to insufficient Policy Value.
THE HYPOTHETICAL INVESTMENT RATES OF RETURN ARE ILLUSTRATIVE ONLY, AND
SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RATES OF
RETURN. ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN, AND WILL
DEPEND ON A NUMBER OF FACTORS, INCLUDING THE INVESTMENT ALLOCATIONS BY A POLICY
OWNER, AND THE DIFFERENT INVESTMENT RATES OF RETURN FOR THE FUNDS. THE CASH
SURRENDER VALUE AND DEATH BENEFIT FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL RATES OF INVESTMENT RETURN AVERAGED 0%, 6%, AND 12% OVER A
PERIOD OF YEARS, BUT FLUCTUATED ABOVE AND BELOW THOSE AVERAGES FOR INDIVIDUAL
POLICY YEARS. THEY WOULD ALSO BE DIFFERENT IF ANY POLICY LOANS OR PARTIAL
SURRENDERS WERE MADE. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL
INVESTMENT RATES OF RETURN CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER
ANY PERIOD OF TIME.
C-8
<PAGE>
[Back Cover]
A complete copy of the registration statement, of which this prospectus is a
part, as well as additional information about us, the Policy, the Variable
Account and the underlying Funds which may be of interest to you, is available
on the SEC's Internet Web site (http//www.sec.gov). You may also review and copy
this information at the SEC's Public Reference Room in Washington, D.C. Call
1-800-SEC-0330 for more information about the operation of the Public Reference
Room. In addition, you may obtain copies of this information, upon payment of a
fee, by writing the Public Reference Section of the Securities and Exchange
Commission, Washington, D.C. 20549-6009.
<PAGE>
PART II
<PAGE>
CONTENTS OF REGISTRATION STATEMENT
This registration statement comprises the following papers and documents:
The facing sheet.
The prospectuses consisting of 53 pages.
The undertaking to file reports.
Representation of reasonableness of fees.
The Rule 484 undertaking.
The signatures.
Written consents of the following persons:
Margaret Sears Mead, Assistant Vice President and Secretary
(Exhibit 2)
John E. Coleman, FSA, MAAA (Exhibit 6)
Deloitte & Touche LLP, Independent Public Accountants (Exhibit 7)
The following exhibits:
1. Copies of all exhibits required by paragraph A of instructions for Exhibits
to Form N-8B-2:
(1) Resolution of Board of Directors of Sun Life Assurance Company of
Canada (U.S.), dated December 3, 1985, authorizing the
establishment of Sun Life of Canada (U.S.) Variable Account G (1)
(2) Not Applicable
(3)(a) Principal Underwriting Agreement (2)
(3)(b) Form of Selling Agreements (2)
(3)(c) Schedule of Sales Commissions (3)
(4) Not Applicable
(5)(a) Form of Flexible Premium Variable Universal Life Insurance Policy
(3)
(5)(b) Form of Additional Protection Benefit Rider (APB Rider) (3)
(6)(a) Certificate of Incorporation of Sun Life Assurance Company of
Canada (U.S.) (4)
(6)(b) Bylaws of Sun Life Assurance Company of Canada (U.S.) (4)
(7) Not Applicable.
(8) Forms of Participation Agreements (3)
(9) Not Applicable.
<PAGE>
(10) Form of Application for Flexible Premium Variable Universal Life
Insurance Policy (3)
(11) Memorandum describing Sun Life Assurance Company of Canada
(U.S.)'s Issuance, Transfer and Redemption Procedures
2. Opinion and Consent of Counsel as to the Legality of the Securities Being
Registered (5)
3. None
4. Not Applicable
5. Not Applicable
6. Opinion and Consent of John E. Coleman, FSA, MAAA
7. Consent of Deloitte & Touche LLP, Independent Public Accountants (6)
8. Powers of Attorney
____________
(1) Incorporated herein by reference to the Registration Statement of Sun Life
of Canada (U.S.) Variable Account F on Form N-4, File No. 333-29852.
(2) Incorporated herein by reference to Post-Effective Amendment No. 2 to the
Registration Statement of Sun Life of Canada (U.S.) Variable Account G on
Form S-6, File No. 333-13087.
(3) Incorporated herein by reference to Pre-Effective Amendment No. 1 to the
Registration Statement of Sun Life of Canada (U.S.) Variable Account G on
Form S-6, File No. 333-13087.
(4) Incorporated herein by reference to the Registration Statement of Sun Life
of Canada (U.S.) Variable Account F on Form N-4, File No. 333-37907.
(5) Incorporated herein by reference to Post-Effective Amendment No. 1 to the
Registration Statement of Sun Life of Canada (U.S.) Variable Account G on
Form S-6, File No. 333-13087.
(6) To be filed by amendment.
<PAGE>
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the undersigned registrant hereby undertakes to file with
the Securities and Exchange Commission such supplementary and periodic
information, documents, and reports as may be prescribed by any rule or
regulation of the Commission heretofore or hereafter duly adopted pursuant to
authority conferred in that section.
REPRESENTATION OF REASONABLENESS OF FEES
Sun Life Assurance Company of Canada (U.S.) hereby represents that the
aggregate fees and charges under the Policy are reasonable in relation to the
services rendered, the expenses expected to be incurred, and the risks assumed
by Sun Life Assurance Company of Canada (U.S.).
UNDERTAKING ON INDEMNIFICATION
Insofar as indemnification for liability arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
depositor pursuant to its certificate of incorporation, bylaws, or otherwise,
the depositor has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
depositor of expenses incurred or paid by a director, officer or controlling
person of the depositor in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the depositor will, unless in
the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the act and will
be governed by the final adjudication of such issue.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
has duly caused this registration statement to be signed on its behalf by the
undersigned thereunto duly authorized, and attested, all in the city of
Wellesley Hills, and the Commonwealth of Massachusetts, on the 16th day of
February, 1999.
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
(Registrant)
By: SUN LIFE ASSURANCE COMPANY OF
CANADA (U.S.)
(Depositor)
By: /s/ C. James Prieur
---------------------------------------
C. James Prieur
Attest: /s/ Ellen B. King
--------------------------
Ellen B. King, Secretary
<PAGE>
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed by the following persons and in the
capacities and on the dates indicated.
/s/ C. James Prieur President and Director
- -------------------------- (Principal Executive Officer)
C. James Prieur
/s/ Robert P. Vrolyk Vice President and Actuary
- -------------------------- (Principal Financial &
Robert P. Vrolyk Accounting Officer)
* /s/ Donald A. Stewart Chairman and Director
- --------------------------
Donald A. Stewart
* /s/ John D. McNeil Director
- --------------------------
John D. McNeil
* /s/ M. Colyer Crum Director
- --------------------------
M. Colyer Crum
* /s/ Richard B. Bailey Director
- --------------------------
Richard B. Bailey
* /s/ David D. Horn Director
- --------------------------
David D. Horn
Director
- --------------------------
John S. Lane
* /s/ Angus A. MacNaughton Director
- --------------------------
Angus A. MacNaughton
* /s/ S. Caesar Raboy Senior Vice President and Deputy
- -------------------------- General Manager and Director
S. Caesar Raboy
By: /s/ Ellen B. King February 16, 1999
--------------------------------
Ellen B. King, Attorney-In-Fact
* By Ellen B. King pursuant to Powers of Attorney filed with this
registration statement.
<PAGE>
EXHIBIT INDEX
<TABLE>
EXHIBIT NO.
<S> <C>
1.A(1) Resolution of Board of Directors of Sun Life Assurance Company of
Canada (U.S.), dated December 3, 1985, authorizing the establishment
of Sun Life of Canada (U.S.) Variable Account G*
1.A(3)(a) Principal Underwriting Agreement*
1.A(3)(b) Form of Selling Agreements*
1.A(3)(c) Schedule of Sales Commissions*
1.A(5)(a) Form of Flexible Premium Variable Universal Life Insurance Policy*
1.A(5)(b) Form of Additional Protection Benefit Rider (APB Rider)*
1.A(6)(a) Certificate of Incorporation of Sun Life Assurance Company of Canada
(U.S.)*
1.A(6)(b) Bylaws of Sun Life Assurance Company of Canada (U.S.)*
1.A(8) Forms of Participation Agreements*
1.A(10) Form of Application for Flexible Premium Variable Universal Life
Insurance Policy*
1.A(11) Memorandum describing Sun Life Assurance Company of Canada (U.S.)'s
Issuance, Transfer and Redemption Procedures
2. Opinion and Consent of Counsel as to the Legality of the Securities Being
Registered*
6. Opinion and Consent of John E. Coleman, FSA, MAAA
7. Consent of Deloitte & Touche LLP, Independent Public Accountants**
8. Powers of Attorney
</TABLE>
__________
* Incorporated herein by reference.
** To be filed by amendment.
<PAGE>
EXHIBIT 1.A(11)
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DESCRIPTION OF ISSUANCE, TRANSFER
AND REDEMPTION PROCEDURES FOR
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICIES
Pursuant to Rule *6e-3(T) (b) (12) (iii)
This document sets forth the administrative procedures that will be followed
by Sun Life Assurance Company of Canada (U.S.), ("Sun Life" or the
"Company"), in connection with the issuance of a Flexible Premium Variable
Life Insurance Policy, (the "Policy"), the transfer of assets held
thereunder, and the redemption by Owners of their interests in such Policy.
I. PROCEDURES RELATING TO ISSUANCE AND PURCHASE OF POLICIES
A. Application, Underwriting and Initial Premium Processing
To purchase a Policy, an application must be submitted to our Principal
Office so that we may follow certain underwriting procedures designed to
determine the insurability of the proposed Insured. We offer the Policy on a
regular (medical) underwriting, simplified underwriting, and guaranteed issue
basis (each such basis is referred to as an underwriting Class). The
proposed Insured generally must be less than 81 years old for medical issue,
76 years old for simplified issue, and 71 years old for guaranteed issue
underwriting classes. Medical and simplified issue policies may require
medical exams and further information before the proposed application is
approved. Availability of guaranteed issue policies must be pre-approved
based on information the Owner provides on a master application along with
specific requirements which must be met by all members of the group of
proposed Insureds. Proposed Insureds must be acceptable risks based on our
underwriting limits and standards. A policy cannot be issued until the
underwriting process has been completed to our satisfaction and we reserve
the right to reject an application that does not meet our underwriting
requirements or to "rate" an insured as a substandard risk, which will result
in the charging of increased Monthly Cost of Insurance charges and/or flat
extra charges.
The applicant must specify certain information in the application including
the Specified Face Amount, the APB Rider Face Amount, the death benefit
compliance test and the death benefit option.
The Specified Face Amount must not be below the Minimum Specified Face Amount
which is generally $5,000. The Policy can be issued with an APB Rider, which
provides additional life insurance coverage, annually renewable to Attained
Age 100, on the life of the Insured. The sum of the Specified Face Amount
and the APB Rider Face Amount, the Total Face Amount, must not be below the
Minimum Total Face Amount which is generally $50,000.
The Policy must satisfy either of two death benefit compliance tests in order
to qualify as life insurance under Section 7702 of the Internal Revenue Code:
the Cash Value Accumulation Test or the Guideline Premium Test. Each test
effectively requires that the Policy's Death Benefit must always be equal to
or greater than the Account Value multiplied by a certain percentage (the
"Death Benefit Percentage"). Thus, the Policy has been structured so that
the Base Death Benefit may increase above the Specified Face Amount in order
to comply with the applicable test. The death benefit compliance test may
not be changed.
The Policy provides the following two death benefit options for determining
the Base Death Benefit:
Option A - Specified Face Amount. The Base Death Benefit is the greater of
the Specified Face Amount, or the Account Value multiplied by the applicable
Death Benefit Percentage.
Option B - Specified Face Amount Plus Account Value. The Base Death Benefit
is the greater of the
<PAGE>
Specified Face Amount plus the Account Value, or the Account Value multiplied
by the applicable Death Benefit Percentage. Option B is not available if
the death benefit compliance test is the Cash Value Accumulation Test.
Pending approval of the application, any initial Premium will be held in our
General Account without interest. However, we may credit interest on these
amounts on certain group cases. Upon approval of the application, the Policy
on the life of the Insured will be issued to the Owner. The Minimum Premium
is due and payable as of the Issue Date. The Effective Date of Coverage for
the Policy, which initially is the Investment Start Date, will be the later
of the Issue Date, the date we approve the application for the Policy, or the
date a premium is paid equal to or in excess of the Minimum Premium. If an
application is not approved, any Premium payment will be returned promptly.
Net premium is first allocated to the Policy to the separate account on the
Investment Start Date. During the Free Look Period, the Company will
allocate net premiums received to the sub-account of the Sun Life Assurance
Company of Canada (U.S.) Variable Account G (the "Separate Account") that
invests in the Money Market Fund of Fidelity. Upon expiration of this
period, the account value in that sub-account will be transferred to the
sub-accounts of the Separate Account in accordance with the Owner's
allocation instructions. Where state law does not require a refund of
premiums paid when a Policy is returned under the right to examine Policy,
initial net premiums received under the Policy will be allocated in
accordance with the allocation specified by the Owner.
B. Premium Payments
Premiums for the Policies will not be the same for all owners of Policies.
An initial premium, together with a completed application satisfactory to the
Company, must be received by the Company before a Policy will be issued. The
Company requires that the initial premium for a Policy must be at least equal
to the Minimum Premium for the Policy. The Minimum Premium is the amount
specified for each Policy based on the requested Total Face Amount, issue
age, sex and class of the Policy.
All Premium payments are payable to us, and should be mailed to our Principal
Office. The Owner is not required to make Premium payments according to a
fixed schedule, but he or she may select a planned periodic Premium schedule
and corresponding billing period, subject to our Premium limits. In general,
the billing period must be annual or semi-annual. We will send reminder
notices for the planned periodic Premium at the beginning of each billing
period. However, the Owner is not required to pay the planned periodic
Premium; he or she may increase or decrease Premium payments, subject to our
limits, and may skip a planned payment or make unscheduled payments. The
Owner may change the planned payment schedule or the billing period, subject
to our approval. Depending on the investment performance of the Sub-Accounts
selected, the planned periodic Premium may not be sufficient to keep the
Policy in force, and the Owner may need to change the planned payment
schedule or make additional payments in order to prevent termination of the
Policy.
The Company reserves the right to limit the number of Premium payments we
accept on an annual basis. No Premium payment may be less than $100 without
our consent, although we will accept a smaller Premium payment if it is
necessary to keep a Policy in force. We reserve the right not to accept a
Premium payment that causes the Base Death Benefit to increase by an amount
that exceeds the Premium received. Evidence of insurability satisfactory to
us may be required before we accept such a Premium.
If the death benefit compliance test specified is the Guideline Premium
Test, we will not accept Premium payments that would cause the Policy to fail
to qualify as life insurance under that test. The maximum Premium limit for
each year is the largest Premium that can be paid such that the sum of all
Premiums paid will not exceed the limitations referred to in Section 7702 of
the Internal Revenue Code, or any successor provision. Maximum Premium
limits for each year will be shown in an annual report. If a Premium
-2-
<PAGE>
payment is made in excess of these limits, we will accept only that portion
of the Premium within those limits, and will refund the remainder. No such
maximum Premium limitations apply under the Cash Value Accumulation Test.
At the time a Premium is received that would cause the Policy to become a
Modified Endowment Contract, the Company will so notify the Owner and will
not credit the Premium unless it has received specific instructions from the
Owner to do so. If such instructions are not received within 24 hours of
notification to the Owner, the Premium will be immediately returned.
A Policy will remain in force so long as the account value less Policy Debt
is sufficient to pay the Policy deductions. Thus, the amount of a premium,
if any, that must be paid to keep the Policy in force depends upon the
account value of the Policy, which in turn depends on such factors as the
investment experience and the monthly cost of insurance, the monthly expense
charge, and the daily risk percentage deduction. The cost of insurance rate
utilized in computing the cost of insurance will not be the same for each
insured. The chief reason is that the principle of pooling and distribution
of mortality risks is based on the assumption that each insured incurs an
insurance rate commensurate with his or her mortality risk which is
actuarially determined based on such factors as attained age, sex (except
under unisex policies), and class. Accordingly, while not all insureds will
be subject to the same cost of insurance rate, there will be a single rate
for all insureds in a given actuarial category.
Current cost of insurance rates will be determined by the Company based upon
expectations of future experience with respect to mortality, persistency,
interest rates, expenses and taxes. The cost of insurance rates are
guaranteed not to exceed rates set based on the 1980 CSO Mortality Tables.
The Policies will be offered and sold pursuant to established mortality
structure and underwriting standards and in accordance with state insurance
laws.
II. REDEMPTION PROCEDURES: SURRENDER AND RELATED TRANSACTIONS
Set forth below is a summary of the principal Policy provisions and
administrative procedures which might be deemed to constitute, either
directly or indirectly, a redemption transaction. The summary shows that
because of the insurance nature of the policies, the procedures involved
necessarily differ in certain significant respects from the redemption
procedures for mutual funds and contractual plans.
A. Surrenders and Partial Surrenders
The Owner may surrender this Policy for the Cash Surrender Value at any time
by sending a written request to the Company. The amount available for
surrender is the Cash Surrender Value at the end of the valuation period
during which the surrender request is received. The Cash Surrender Value is
the Account Value, decreased by the balance of any outstanding Policy Debt,
increased by the Sales Load Refund at Surrender, if any. Coverage under a
Policy will terminate as of the date of surrender.
The Owner may make a Partial Surrender of this Policy once each Policy Year
after the first Policy Year by written request to the Service Center. The
maximum amount of any Partial Surrender is the Account Value decreased by the
balance of any outstanding Policy Debt. Unless the Owner provides evidence
satisfactory to the Company that the Insured is still an acceptable risk
based on our underwriting limits and standards, the Total Face Amount will be
reduced to the extent necessary so that the Death Benefit less the Account
Value immediately after the Partial Surrender, does not exceed the Death
Benefit less the Account Value immediately before the Partial Surrender.
If the Owner provides such evidence, then he or she will have the option of
keeping the Death Benefit equal to what it was immediately prior to the
Partial Surrender. The Specified Face Amount remaining in force after the
Partial Surrender must be no lower than the minimum Specified Face Amount
which is generally $5000. A Partial Surrender may not decrease the Policy's
Total Face Amount to an amount less
-3-
<PAGE>
than the minimum Total Face Amount which is generally $50,000.
The Owner may allocate the Partial Surrender among the Sub-Accounts of the
Variable Account. If the allocation is not specified, then the Partial
Surrender will be allocated among the Sub-Accounts in the same proportion
that the Account Value of each Sub-Account bears to the aggregate Account
Value of all Sub-Accounts on the date of Partial Surrender.
Amounts payable from the Separate Account upon surrender or partial surrender
will ordinarily be paid within seven days of receipt of the written request.
B. Changes in Face Amount
After the end of the first Policy Year, the Owner may change the Specified
Face Amount and, if it is part of the Policy, the APB Rider Face Amount.
Unless otherwise specified, a change in the Policy's Total Face Amount will
first be applied, to the extent possible, to the APB Rider Face Amount. The
Owner must send a request for a change to our Service Center, in writing.
The Effective Date of Coverage for changes is:
- for any increase in coverage, the Monthly Anniversary Day that falls
on or next follows the date we approve the supplemental application
for such increase, and
- for any decrease in coverage, the Monthly Anniversary Day that falls
on or next follows the date we receive your request.
The Specified Face Amount may not decrease to less than the minimum Specified
Face Amount. A decrease in Specified Face Amount or APB Rider Face Amount
may not decrease the Policy's Total Face Amount to an amount less than the
minimum Total Face Amount. A decrease in face amount will be applied to the
initial face amount and to each increase in face amount in the following
order:
- first, to the most recent increase;
- second, to the next most recent increases in reverse chronological
order; and
- finally, to the initial face amount.
An increase in the face amount is subject to our underwriting rules in effect
at the time of the increase. The Owner may be required to submit evidence of
the Insured's insurability satisfactory to us.
C. Change in Death Benefit Option
If the death benefit compliance test chosen is the Guideline Premium Test,
then the death benefit option may be changed either from Option A to Option
B, or from Option B to Option A. If the death benefit compliance test chosen
is the Cash Value Accumulation Test, only Option A is available, and the
death benefit option may not be changed. Changes in the death benefit option
are subject to our underwriting rules in effect at the time of change.
Requests for a change must be made in writing to our Service Center. The
effective date of the change will be the Policy Anniversary on or next
following the date of receipt of the request.
If the death benefit option change is from Option B to Option A, the
Specified Face Amount will be increased by the Account Value. If the death
benefit option change is from Option A to Option B, the Specified Face Amount
will be reduced by the Account Value. In either case, the amount of the Base
Death Benefit at the time of change will not be altered, but the change in
death benefit option will affect
-4-
<PAGE>
the determination of the Base Death Benefit from that point on.
D. Benefit Claims
While the Policy remains in force, the Company will pay a death benefit to
the named beneficiary in accordance with the designated death benefit option
within seven days after receipt in its home office of due proof of death of
the insured. Payment of death benefits may be postponed under certain
circumstances, such as the New York Stock Exchange being closed for reasons
other than customary weekend and holiday closings.
The amount of the death benefit is determined at the end of the valuation
period during which the insured dies. The amount of the death benefit will
never be less than the Total Face Amount of the Policy. The amount paid, the
Policy Proceeds, equals the amount of the Base Death Benefit decreased by the
amount of any outstanding Policy Debt, and increased by the amounts payable
under any APB Rider Death Benefit and any other supplemental benefits.
The amount of coverage under the APB Rider, the APB Rider Death Benefit, is
initially the APB Rider Face Amount that is specified in the application.
Subsequently, the amount of the APB Rider Death Benefit is adjusted
automatically by the Company; if the Base Death Benefit under the Policy
exceeds the Specified Face Amount (or for death benefit Option B, the
Specified Face Amount plus Account Value) as a result of an increase in
Account Value, the APB Rider Death Benefit will be reduced by an equivalent
amount, under the formula set forth below.
The APB Rider Death Benefit is the greater of zero or the result of (a) less
(b) where:
(a) is the APB Rider Face Amount, and
(b) is the excess, if any, of the Base Death Benefit over
- the Specified Face Amount for death benefit Option A policies, or
- the Specified Face Amount plus the Account Value for death
benefit Option B policies.
If the insured is living on the date of maturity (the Policy Anniversary on
which the insured reaches attained age 100), the Company will pay in a lump
sum the cash surrender value of the Policy.
E. Policy Loans
The Owner may request a Policy loan of up to 90% of the Account Value,
decreased by the balance of any outstanding Policy Debt on the date the
Policy loan is made. Any amount due to an Owner under a loan ordinarily will
be paid within seven days after the Company receives a loan request at its
home office, although payments may be postponed under certain circumstances.
Account Value equal to the amount of the Policy loan will be transferred from
the Sub-Accounts to the Loan Account as security for the loan on the date the
Policy loan is made. The Owner may allocate the Policy loan among the
Sub-Accounts for this transfer. If the allocation is not specified, then the
Policy loan will be allocated among the Sub-Accounts in the same proportion
that the Account Value of each Sub-Account bears to the aggregate Account
Value of all Sub-Accounts immediately prior to the loan. Account value
transferred to the loan account will earn interest at an annual rate of 4%.
-5-
<PAGE>
Interest on the Policy loan will accrue daily at the Policy loan interest
rate of 5% in Policy Years one through ten and 4.25% thereafter. This
interest shall be due and payable to us in arrears on each Policy
Anniversary. Any unpaid interest will be added to the principal amount as an
additional Policy loan and will bear interest at the same rate and in the
same manner as the prior Policy loan.
All funds we receive from the Owner will be credited to the Policy as Premium
unless we have received written notice, in form satisfactory to us, that the
funds are for loan repayment. Loan repayments will first reduce the
outstanding balance of the Policy loan and then accrued but unpaid interest
on such loans. We will accept repayment of any Policy loan at any time
before Maturity. The amount of the loan repayment up to the outstanding
balance of the Policy loan will be transferred from the Loan Account to the
Sub-Accounts. The Owner may allocate the loan repayment among the
Sub-Accounts. If the allocation is not specified, then the loan repayment
will be allocated among the Sub-Accounts in the same proportion that the
Account Value of each Sub-Account bears to the total Account Value less the
Loan Account immediately prior to the loan repayment.
III TRANSFERS
Subject to the Company's rules as they may exist from time to time and to any
limits that may be imposed by the Funds, including those set forth in the
Policy, the Owner may at any time transfer to another Sub-Account all or a
portion of the Account Value allocated to a Sub-Account.
All requests for transfers must be made to the Service Center. The Company
will make transfers pursuant to a valid written or telephone request received
by the Service Center. Telephone requests will be honored only if the
Company has a properly completed telephone authorization form for the Owner
on file. The Company and its agents and affiliates will not be responsible
for losses resulting from acting upon telephone requests reasonably believed
to be genuine. The Company will use reasonable procedures to confirm that
instructions communicated by telephone are genuine. The procedures followed
for transactions initiated by telephone include requirements that the Owner
identify himself or herself by name and identify a personal identification
number. For additional protection, all changes in allocation percentages by
telephone may be recorded.
Transfers may be requested by indicating the transfer of either a specified
dollar amount or a specified percentage of the Sub-Account's value from which
the transfer will be made. If a transfer is based on a specified percentage
of the Sub-Account's value, that percentage will be converted into a request
for the transfer of a specified dollar amount based on application of the
specified percentage to the Sub-Account's value at the time the request is
received.
These transfer privileges are subject to the Company's consent. The Company
reserves the right to impose limitations on transfers, including, but not
limited to: (1) the minimum amount that may be transferred; and (2) the
minimum amount that may remain in a Sub-Account following a transfer from
that Sub-Account. In addition, transfer privileges are subject to any
restrictions that may be imposed by the Funds.
IV. REFUNDS
A. Free Look Period
The Policy has a "Right to Return" provision, which gives certain
cancellation rights. If the Owner is not satisfied with the Policy, it may
be returned by delivering or mailing it to our Principal Office or to the
agent from whom the Policy was purchased within 20 days from the date of
receipt (unless a different period is applicable under state law) or within
45 days after the application is signed, whichever period ends later (the
"Free Look Period").
-6-
<PAGE>
A Policy returned under this provision will be deemed void from the
beginning. The Owner will receive a refund equal to the sum of (1) the
difference between any Premium payments made, including fees and charges, and
the amounts allocated to the Variable Account, (2) the value of the amounts
allocated to the Variable Account on the date the cancellation request is
received by the Company or its agent from whom the Policy was purchased, and
(3) any fees or charges imposed on amounts allocated to the Variable Account.
However, certain states provide for a full refund of premiums. If the
Policy provides for a full refund under its "Right to Return" provision, the
Owner will receive a refund of all Premium payments made, with no adjustment
for investment experience.
B. Conversion Privilege
The Owner may convert the Policy into a flexible premium universal life
policy offered by Sun Life Assurance Company of Canada during the first 24
months after the Issue Date while the Policy is in force. Choice of a new
policy is subject to the Company's approval and will be restricted to those
policies that offer the same Class and rating as the Policy. The new policy
will be issued without evidence with the same Class and rating as the Policy.
The conversion provision does not apply to the APB Rider, if any, or to any
supplemental benefits that may be attached to the Policy.
C. Suicide
In most states, if the Insured, whether sane or insane, commits suicide within
two years after the Issue Date, the Company will not pay any part of the
Policy Proceeds. The Company will refund the Premiums paid, less the amount
of any Policy Debt and any Partial Surrenders.
D. Incontestability Clause
All statements made in the Application or in a supplemental application are
representations and not warranties. The Company relied on these statements
when approving the issuance, increase in face amount, increase in Base Death
Benefit over Premium paid, or change in death benefit option of the Policy.
No statement can be used by the Company in defense of a claim unless the
statement was made in the application or in a supplemental application. In
the absence of fraud, after the Policy has been in force during the lifetime
of the Insured for a period of two years from its Issue Date, the Company
cannot contest it except for non-payment of Premiums in accordance with the
Insufficient Value provision. However, any increase in the Total Face Amount
which is effective after the Issue Date will be incontestable only after such
increase has been in force during the lifetime of the Insured for two years
from the effective date of such increase. Any increase in Base Death Benefit
over Premium paid or increase in Base Death Benefit due to a death benefit
option change will be incontestable only after such increase has been in
force during the lifetime of the Insured for two years from the date of the
increase.
E. Misstatement of Age or Sex
If the age or (in the case of a Non-Unisex Policy) sex of the Insured is
stated incorrectly in the Application, the amounts payable by the Company
will be adjusted as follows:
- Misstatement discovered at death: The Death Benefit will be that which
would be purchased by the most recently charged Monthly Cost of
Insurance rate for the correct age or (for a Non-Unisex Policy) sex.
- Misstatement discovered prior to death: The Account Value will be
recalculated from the Issue Date using the Monthly Cost of Insurance
rates based on the correct age or (for a
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<PAGE>
Non-Unisex Policy) sex.
-8-
<PAGE>
Exhibit 6
[LOGO] U.S. HEADQUARTERS OFFICE One Sun Life Executive Park
Wellesley Hills, MA 02181
Tel. (781) 237-6030
Tel. (800) 225-3950
February 10, 1999
Gentlemen:
In my capacity as Product Officer for Sun Life Assurance Company of Canada, I
have provided actuarial advice concerning: (a) the preparation of a
registration statement for Sun Life of Canada (U.S.) Variable Account G filed on
Form S-6 with the Securities Exchange Commission under the Securities Act of
1933 (the "Registration Statement") regarding the offer and sale of flexible
premium variable universal life insurance policies (the "Policies"); and (b) the
preparation of policy forms for the Policies described in the Registration
Statement.
It is my professional opinion that:
The illustrations of cash surrender values, account values, death
benefits and accumulated premiums in the Appendix to the prospectus
contained in the Registration Statement, are based on the assumptions
stated in the illustrations. The rate structure of the Policies has
not been designed so as to make the relationship between premiums and
benefits, as shown in the illustrations, appear to be more favorable
to prospective purchasers of Policies aged 45 in the rate classes
illustrated than to prospective purchasers of Policies, for males or
females, at other ages.
I hereby consent to the filing of this opinion as an exhibit to the Registration
Statement and to the use of my name under the heading "Experts" in the
prospectus.
Very truly yours,
/s/ John E. Coleman
John E. Coleman, FSA, MAAA
Product Officer
<PAGE>
SUN LIFE ASSURANCE COMPAY OF CANADA (U.S.)
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS that John D. McNeil, whose signature
appears below, constitutes and appoints Edward M. Shea, Ellen B. King, Peter
F. Demuth and C. James Prieur, and each of them, his attorneys-in-fact, each
with the power of substitution, for him in any and all capacities, to sign a
Registration Statement on Form S-6 of Sun Life of Canada (U.S.) Variable
Account G (Reg. No. 333-13087), and any amendments thereto, and to file the
same, with exhibits thereto, and other documents in connection therewith,
with the Securities and Exchange Commission, hereby ratifying and confirming
all that each of said attorneys-in-fact or his substitute or substitutes, may
do or cause to be done by virtue hereof.
/s/ John D. McNeil
-----------------------------------------
John D. McNeil
February 4, 1999
COLI
<PAGE>
SUN LIFE ASSURANCE COMPAY OF CANADA (U.S.)
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS that Donald A. Stewart, whose signature
appears below, constitutes and appoints Edward M. Shea, Ellen B. King, Peter
F. Demuth and C. James Prieur, and each of them, his attorneys-in-fact, each
with the power of substitution, for him in any and all capacities, to sign a
Registration Statement on Form S-6 of Sun Life of Canada (U.S.) Variable
Account G (Reg. No. 333-13087), and any amendments thereto, and to file the
same, with exhibits thereto, and other documents in connection therewith,
with the Securities and Exchange Commission, hereby ratifying and confirming
all that each of said attorneys-in-fact or his substitute or substitutes, may
do or cause to be done by virtue hereof.
/s/ Donald A. Stewart
-----------------------------------------
Donald A. Stewart
February 4, 1999
COLI
<PAGE>
SUN LIFE ASSURANCE COMPAY OF CANADA (U.S.)
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS that S. Caesar Raboy, whose signature
appears below, constitutes and appoints Edward M. Shea, Ellen B. King, Peter
F. Demuth and C. James Prieur, and each of them, his attorneys-in-fact, each
with the power of substitution, for him in any and all capacities, to sign a
Registration Statement on Form S-6 of Sun Life of Canada (U.S.) Variable
Account G (Reg. No. 333-13087), and any amendments thereto, and to file the
same, with exhibits thereto, and other documents in connection therewith,
with the Securities and Exchange Commission, hereby ratifying and confirming
all that each of said attorneys-in-fact or his substitute or substitutes, may
do or cause to be done by virtue hereof.
/s/ S. Caesar Raboy
-----------------------------------------
S. Caesar Raboy
February 4, 1999
COLI
<PAGE>
SUN LIFE ASSURANCE COMPAY OF CANADA (U.S.)
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS that Richard B. Bailey, whose signature
appears below, constitutes and appoints Edward M. Shea, Ellen B. King, Peter
F. Demuth and C. James Prieur, and each of them, his attorneys-in-fact, each
with the power of substitution, for him in any and all capacities, to sign a
Registration Statement on Form S-6 of Sun Life of Canada (U.S.) Variable
Account G (Reg. No. 333-13087), and any amendments thereto, and to file the
same, with exhibits thereto, and other documents in connection therewith,
with the Securities and Exchange Commission, hereby ratifying and confirming
all that each of said attorneys-in-fact or his substitute or substitutes, may
do or cause to be done by virtue hereof.
/s/ Richard B. Bailey
-----------------------------------------
Richard B. Bailey
February 4, 1999
COLI
<PAGE>
SUN LIFE ASSURANCE COMPAY OF CANADA (U.S.)
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS that M. Colyer Crum, whose signature
appears below, constitutes and appoints Edward M. Shea, Ellen B. King, Peter
F. Demuth and C. James Prieur, and each of them, his attorneys-in-fact, each
with the power of substitution, for him in any and all capacities, to sign a
Registration Statement on Form S-6 of Sun Life of Canada (U.S.) Variable
Account G (Reg. No. 333-13087), and any amendments thereto, and to file the
same, with exhibits thereto, and other documents in connection therewith,
with the Securities and Exchange Commission, hereby ratifying and confirming
all that each of said attorneys-in-fact or his substitute or substitutes, may
do or cause to be done by virtue hereof.
/s/ M. Colyer Crum
-----------------------------------------
M. Colyer Crum
February 4, 1999
COLI
<PAGE>
SUN LIFE ASSURANCE COMPAY OF CANADA (U.S.)
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS that Angus A. MacNaughton, whose
signature appears below, constitutes and appoints Edward M. Shea, Ellen B.
King, Peter F. Demuth and C. James Prieur, and each of them, his
attorneys-in-fact, each with the power of substitution, for him in any and
all capacities, to sign a Registration Statement on Form S-6 of Sun Life of
Canada (U.S.) Variable Account G (Reg. No. 333-13087), and any amendments
thereto, and to file the same, with exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange Commission, hereby
ratifying and confirming all that each of said attorneys-in-fact or his
substitute or substitutes, may do or cause to be done by virtue hereof.
/s/ Angus A. MacNaughton
-----------------------------------------
Angus A. MacNaughton
February 4, 1999
COLI
<PAGE>
SUN LIFE ASSURANCE COMPAY OF CANADA (U.S.)
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS that David D. Horn, whose signature
appears below, constitutes and appoints Edward M. Shea, Ellen B. King, Peter
F. Demuth and C. James Prieur, and each of them, his attorneys-in-fact, each
with the power of substitution, for him in any and all capacities, to sign a
Registration Statement on Form S-6 of Sun Life of Canada (U.S.) Variable
Account G (Reg. No. 333-13087), and any amendments thereto, and to file the
same, with exhibits thereto, and other documents in connection therewith,
with the Securities and Exchange Commission, hereby ratifying and confirming
all that each of said attorneys-in-fact or his substitute or substitutes, may
do or cause to be done by virtue hereof.
/s/ David D. Horn
-----------------------------------------
David D. Horn
February 4, 1999
COLI
