Effective December 30, 2011, this product and/or living benefit rider will no longer be available for sale

Sun Income Riser® III

An optional benefit like Sun Income Riser III, available in New York with our Sun Life Financial Masters® variable annuities, can guarantee you lifetime income that has the potential to increase over time.

Sun Income Riser III provides these 3 key benefits:

• Helps protect and grow your future income with a 7% Bonus.¹
• Helps lock in market gains with a step-up.
• Offers you predictable, lifelong income – now or later.

7% Bonus¹ in down markets | back to top

If you choose single life coverage, at a minimum, your Withdrawal Benefit Base (WBB) grows with an annual 7% Bonus during the first 10 contract years, as long as you don’t take a withdrawal.

Your Withdrawal Benefit Base is the baseline we use to calculate your future income and the cost of the benefit.²

Figure 1

Sun Income Riser III offers a 5% Bonus (not illustrated) if joint life coverage is elected.
View the hypothetical values.

In figure 1, your Withdrawal Benefit Base is initially equal to your first-year Purchase Payment of $350,000, and your Bonus (each year you don’t take a withdrawal) is $24,500 ($350,000 x 7%). At the end of 10 years, your Withdrawal Benefit Base equals $595,000. This is the amount that will be used to calculate your Annual Withdrawal Amount.

Note that the contract value will fluctuate with the market, but the Withdrawal Benefit Base is an independent value used to calculate lifetime income.

Step up in up markets | back to top

If the market performs well, your Withdrawal Benefit Base can increase even beyond the 7% Bonus. In an up market, we step up your Withdrawal Benefit Base to match your contract value, if higher, on each anniversary. We also extend the Bonus Period an additional 10 years any time your Withdrawal Benefit Base steps up.

Figure 2

Sun Income Riser III offers a 5% Bonus (not illustrated) if joint life coverage is elected.
View the hypothetical values.

In figure 2, your Withdrawal Benefit Base steps up twice, and at age 64 it is equal to $475,000. The 7% Bonus is now calculated on the higher amount. Thus, $33,250 ($475,000 x 7%) is added to the Withdrawal Benefit Base in each of the next 10 years. At age 74, your Withdrawal Benefit Base equals $807,500. This amount will be used to calculate your Annual Withdrawal Amount.

Income now | back to top

You can start taking income immediately – 4%, 5%, or 6% withdrawals, depending on your age. To figure out how much income you can count on each year (your Annual Withdrawal Amount), simply multiply your Lifetime Withdrawal Percentage (in figure 2) by your Withdrawal Benefit base.

Figure 3

You also have the opportunity to achieve a higher Lifetime Withdrawal Percentage when you reach a new age tier at the same time your Withdrawal Benefit Base increases due to a step-up.

Income later | back to top

With Sun Income Riser III, your income continues to grow, until you need it. If you’re not yet ready to retire, or you don’t need income from your annuity right now, your Withdrawal Benefit Base continues to grow with the 7% Bonus, and as a result, increases the income available to you.

Figure 4

View the hypothetical values.

Figure 4 illustrates how you can get more income by waiting until age 65 – your Lifetime Withdrawal Percentage increases to 5%, which means you can take over $22,000 each year. If you wait to take income until age 71, your Withdrawal Benefit base will have increased by 10 years’ worth of bonuses, and you can receive almost $30,000 every year for life.