Sun Life Financial Introduces SunDex Bonus: Fixed Index Annuity Features up to 7% Bonus, Storage Benefit for Flexible Income

Business Wire, July 23, 2007

6% - 7% Bonus and Ability to Start, Stop and Store Guaranteed Annual Income Marks New Opportunity for Boomers & Their Retirement Savings

WELLESLEY, Mass. -- The U.S. division of Sun Life Financial (NYSE: SLF, TSX: SLF) today announced the launch of the SunDex(SM) Bonus Fixed Index Annuity. Designed to meet the needs of Baby Boomers who need to boost their savings and plan for flexible retirement income, the SunDex Bonus product offers a bonus of either 6% or 7%, depending on the amount of the premium, which is added to the account value immediately and is fully vested after five years. The SunDex Bonus product also offers the patent-pending InControl(SM) Lifetime Benefit, which allows boomers to defer part or all of the annual withdrawals permitted under the benefit and "store" those withdrawals in the contract for future use.

With SunDex Bonus, the entire bonus is immediately added to the account value and is eligible to earn interest. Then, any time after five contract years, clients age 60+ with a benefit value (the account value or guaranteed minimum contract value, whichever is greater) of at least $10,000 can choose to activate the InControl Lifetime Benefit. Clients are not charged for the InControl Lifetime Benefit until they choose to activate the benefit, at which time their Participation Rate will be reduced. The InControl Lifetime Benefit is designed to secure annual lifetime income along with the flexibility to either withdraw the income annually, or "store" part or all of the annual withdrawals for future use. And with earnings linked to positive increases of the S&P 500 Index, SunDex Bonus provides upside earnings potential while protecting customers from losing account value because of negative S&P 500 Index returns.

"We wanted our first bonus fixed index annuity to boost savings and give boomers the flexibility to start, stop and store income if and when they need it," said Julia Holloway, Vice President of Sun Life Financial Distributors, Inc. "We believe it's critical that SunDex Bonus provide that flexibility. Boomers are looking for ways to fund their retirements, and know their income needs will vary. With the InControl Lifetime Benefit we help give them more control over the unpredictability of expenses that occur across a long retirement."

The breakthrough combination of the bonus and the InControl Lifetime Benefit helps address the new need for ever-changing income with an immediate boost to jumpstart earnings. The product lets today's pre- and current retirees accomplish four key objectives:

    -- Boost savings. Clients will receive a bonus of 6% for premium
       under $250,000 and 7% for premium equal to or greater than
       $250,000. For example, a premium of $500,000 would result in an
       immediate credit to Account Value of $35,000. The bonus helps
       jump-start retirement savings by increasing the Account Value
       and can begin to earn interest for clients immediately.
       (However, the bonus is not credited to the minimum guaranteed
       contract value.)

       It is important to realize that during the first 5 contract
       years, a client will lose some or all of the Bonus (and any
       interest associated with it) if any of the following events
       occur: any withdrawals (including IRS Required Minimum
       Distributions for qualified plans), the commencement of annuity
       payment options or a death benefit distribution. If any of
       those things happen, a vesting schedule will apply to the bonus
       (and the interest associated with it).

    -- Secure lifetime income (without annuitization). The annual
       lifetime income amount is based on two elements: (1) the
       Lifetime Factor, a percentage that ranges from 5.00%-7.50%
       depending on the age of the covered person (the owner, or
       co-owner if a spouse) at the time the InControl Lifetime
       Benefit is activated; and (2) the Lifetime Benefit Base, which
       is the benefit value less any stored income balance. Clients
       pay for the benefit by way of a reduced participation rate
       beginning at time of activation, i.e., Account Value receives a
       reduced credit for any increase in the S&P 500 Index after
       activation, but the annual lifetime income still has the
       potential to increase if sufficient interest is earned from
       strong performance of the underlying S&P 500 Index in a given
       year.

    -- Store deferred income, which can be withdrawn in future years
       in addition to the annual amount available in that year.

    -- Start, stop and store income payments to meet changing needs
       throughout retirement.

"As an A++ rated company,1 it's our mission to bring fixed index annuities to market the right way, and SunDex Bonus was specifically developed with clients' needs in mind," said Mary Fay, Senior Vice President and General Manager, Annuities of Sun Life Assurance Company of Canada (U.S.). "In addition to the bonus and the income option, its chassis is built on a 10-year surrender charge schedule with surrender charges not exceeding 10%. SunDex Bonus is ideal for boomers that want to save more conservatively and have a longer time horizon until retirement."