Flexible Income Plan, first in Canada
WATERLOO, ON, June 11, 2002 – Clarica’s new flexible
retirement product, launched today, provides clients who are retiring with two important
benefits: the stability of guaranteed income plus the potential for income growth linked
to the performance of stock and bond market indexes.
The Flexible Income Plan, a first in the Canadian market,
combines the strengths of a guaranteed income like a traditional payout annuity and
flexible income that is tied to market returns like a Registered Retirement Income Fund
(RRIF) in one income option clients can customize to meet specific needs.
“The Flexible Income Plan is attractive for clients
who want the best of both worlds. People are living longer and they’re concerned about
having sufficient income for life,” said Barry Triller, Clarica’s Executive Vice
President, Retail Operations. Life expectancy rates have increased by five years for males
and by four years for females in the past 20 years. “The guaranteed portion provides
a secure income, and the portion linked to market indexes provides the potential for
maximum income. The plan has been developed to keep up with the needs of today’s retirees”, he said.
The product’s features include:
clients can receive income monthly,
quarterly, semi-annually or annually and they have the option of lifetime income.
the amount the client chooses to receive as
guaranteed income won’t change unless otherwise specified. The balance of income is linked
to the performance of the client’s choice of one or more indexes from among the
S&P/TSX 60, S&P 500, MSCI EAFE, Scotia Capital Universe Bond Index and Salomon
Smith Barney World Government Bond Index.
income from the index-linked portion will be
added to the base income to determine the clients total income and will be re-calculated
or changed at regular intervals based on the performance of the selected indexes. Clients
can change their index selection as often as once a month. As their needs change, clients
may choose three times during the life of the contract to receive more fixed income.
death benefits: Clients can select a
guaranteed period of up to 40 years. If they die during that period, their beneficiary
will receive a death benefit based on the present value of all future total income
payments remaining in the guaranteed period.
choice of single or joint life plans: Clients can allow
their survivor to continue receiving income or have it based on the clients own life expectancy.
“Clarica’s Flexible Income Plan puts it all together
for retirees – it’s a package of options clients can tailor to achieve their goals. An
ideal solution for maximum lifetime income, it meets customer needs in ways no other
product does, and we think Canadians will agree,” said Triller.
Clarica has provided insurance and investment solutions to
Canadians for more than 130 years. Today, Clarica serves more than two million individual
customers through its 4,000-strong direct sales force, offering insurance, savings and
retirement products. Clarica is a member of the Sun Life Financial group of companies.
Sun Life Financial
Sun Life Financial is a leading international financial
services organization providing a diverse range of wealth accumulation and protection
products and services to individuals and corporate customers. Tracing its roots back to
1871, Sun Life Financial and its partners today have operations in key markets worldwide,
including Canada, the U.S., the United Kingdom, Hong Kong, the Philippines, Japan,
Indonesia, India, China and Bermuda. As of March 31, 2002, the Sun Life Financial group of
companies had total assets under management of CDN $357 billion. Sun Life Financial
Services of Canada Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges.