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fixed/variable annuity contract (Sun Life’s June 19, 2001 let-
ter). The respective bodies of those letters, which were virtu-
ally identical, stated in pertinent part:
After review of this contract, it has been determined that
Anne Snyder is entitled to the death benefit options. It is
important that she [Anne Snyder] consult a tax or legal
advisor before making a decision. Please have her choose
one of the following options:
(1) Immediate lump Minimum Death Benefit.
The Minimum Death Benefit is calculated by Sun
Life and will pay the greatest of the following:
• Contributions accruing at a rate of 5% annu-
ally, minus withdrawals also accruing at a
rate of 5% annually. This accrual will con-
tinue until the first day of the month fol-
lowing the 80th birthday of the annuitant or
until the contributions or withdrawals have
doubled as a result of the accumulation.
• 100% of the accumulated value on the date of
death notification and elected option paper-
work is received by Sun Life in good order.
• Account value on the most recent 7th contract
anniversary, plus any contributions, minus
any withdrawals since that 7th year anniver-
sary.
• Cash Surrender Value. This includes any
applicable surrender penalties and Market
Value adjustment (MVA - applies to fixed
series only)
Note: If the Lump Sum option is chosen, we ask that the
beneficiary provide the tax withholding information.
Sun Life can withhold between 10%-50% for taxes only
upon request.
(2) Defer the lump sum payment.
The lump sum payment may be taken anytime within five
years of the date of death. A new beneficiary can be
named for the deferral period.
(3) Annuitize the contract.
This option may be chosen within one year of the annu-
itant’s date of death. If this option is chosen, it is
irrevocable. For additional information regarding
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Last modified: May 25, 2011