To cancel a Sun Life life insurance policy, call Sun Life’s individual life insurance service team at 1-800-862-6266, ask for a surrender form, complete and sign it, and return it by mail or fax to the processing center at P.O. Box 219957, Kansas City, MO 64121-9957. That is the mechanical answer. Before you send anything, read through what a surrender actually costs you, because the death benefit is gone for good and a portion of your cash value may go to surrender charges and taxes.
Who to Call First
Sun Life does not post a surrender form on its public forms page. The downloads there cover beneficiary changes, address updates, and ownership transfers, not cancellations.1Sun Life U.S. Find a Form You have to request the paperwork directly.
For an individually owned permanent policy (whole life, universal life, and similar products with cash value), call 1-800-862-6266 and tell the representative you want to surrender your policy. You can also email USWeb_Individual_Customer_Service@Sunlife.com.2Sun Life U.S. Support
Term policies run through a different service center. Check your policy number: if it starts with SU, call 1-877-431-7377; if it starts with SC, call 1-877-431-7379. Term mail goes to Sun Life Term Center, P.O. Box 84308, Lincoln, NE 65808.2Sun Life U.S. Support Because term policies have no cash value, the process is simpler. You are ending the coverage, not cashing anything out.
What to Have Ready
Before you call or fill in any form, pull together:
- Your policy number, which appears on the original contract and any billing statement.
- Your full legal name as it reads on the policy. If your name has changed, you may need to submit a name change first.
- Your Social Security number or tax ID. Any cash payout gets reported to the IRS.
- Your current mailing address and phone number.
- Bank account details if you want the proceeds by direct deposit instead of a mailed check.
If you cannot find the original policy document, tell the representative when you call. Insurers typically require a lost policy affidavit, a notarized statement that you have lost the original and agree to return it if found. Sun Life will tell you whether yours needs one and send the form.
Filling Out and Signing the Form
The form itself is short. You enter your identifying information, the policy number you want to cancel, and your choice of payment method for any cash surrender value. Verify the policy number carefully. If you own more than one Sun Life policy, a wrong digit can cancel the wrong contract.
Signatures are where surrenders stall. If your policy names an irrevocable beneficiary, Sun Life cannot process the cancellation without that person’s written consent. An irrevocable beneficiary holds guaranteed rights to the policy’s proceeds, and the policy owner cannot unilaterally undo the designation.3Investopedia. Irrevocable Beneficiary: Definition, Rights and Estate Planning Benefits If that beneficiary will not sign, the surrender does not go through.
When a trust or business owns the policy, the signer must be the authorized trustee or officer and should include their title. Sun Life may also ask for a trustee certification, available on its forms page, to confirm signing authority.1Sun Life U.S. Find a Form Some larger surrenders require a witness or notary. The form instructions will say so.
Where to Send the Completed Form
All three return options go to the same team. Pick based on speed and your preference for a paper trail.
- Regular mail: Sun Life, P.O. Box 219957, Kansas City, MO 64121-9957. Use certified mail with return receipt if you want proof of delivery.
- Overnight mail: Sun Life, One Sun Life Executive Park, 96 Worcester St., Wellesley Hills, MA 02481. PO boxes cannot accept overnight packages, so use this address if time matters.
- Fax: 1-888-863-8311. Include a cover sheet with your policy number and page count, and keep the confirmation page.
Keep a signed, dated copy for your records no matter which method you use.2Sun Life U.S. Support
Surrender Charges
Permanent policies carry surrender charges during the first several years. These reimburse the insurer for the upfront cost of issuing the policy, and they shrink on a schedule written into your contract. A common structure starts around 7% in year one and drops roughly a percentage point each year until it reaches zero. Some contracts begin at 10%.4Insurance Information Institute. What Are Surrender Fees? After seven to ten years, most schedules expire.
Your schedule appears in your policy contract, usually in a table near the cash value section. If you cannot locate it, ask Sun Life for the current surrender charge percentage before you commit. On a policy with meaningful cash value, waiting a year or two can save thousands. In the first year or two, the charge can equal or exceed the accumulated cash value, leaving you with nothing.
Tax Consequences
If you surrender a policy for more than your cost basis, the difference is taxable as ordinary income, not capital gains. Your cost basis is the total premiums paid minus any dividends or withdrawals already received. Pay $50,000 in premiums and surrender for $70,000, and the $20,000 gain is taxable in the year you receive it.
Sun Life will issue IRS Form 1099-R reporting the gross payout and the taxable portion. Issuers must send 1099-Rs to recipients by January 31 of the year after the distribution.5Internal Revenue Service. General Instructions for Certain Information Returns Report the taxable amount on your federal return for the year you received the money.6Internal Revenue Service. About Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
Alternatives Worth Considering Before You Surrender
Once you surrender a permanent policy, the death benefit is gone. If your health has changed since you bought it, replacing the coverage later may be expensive or impossible. A few options let you stop paying or pull out cash without ending the policy entirely.
Reduced Paid-Up Insurance
Most whole life policies include a reduced paid-up option. Your existing cash value buys a smaller, fully paid-up whole life policy with no further premiums due. The new death benefit depends on your cash value and your age at conversion. No surrender charge applies, and coverage stays in force for life. This often fits someone who can no longer afford premiums but does not urgently need cash.
Policy Loan
You can borrow against the cash value instead of surrendering. The policy stays active, the death benefit remains in place reduced by the loan balance, and there is no fixed repayment schedule. Interest accrues, and if the unpaid loan exceeds the cash value the policy will lapse. A loan sidesteps surrender charges and defers any tax event as long as the policy stays in force.
1035 Exchange
If you want to move the money into a different life insurance policy or an annuity, a Section 1035 exchange transfers the cash value directly to the new contract without triggering tax. Under federal tax law, a life insurance policy can be exchanged tax-free for another life insurance policy, an endowment, an annuity, or a qualified long-term care insurance contract.7Office of the Law Revision Counsel. 26 USC 1035 – Certain Exchanges of Insurance Policies It does not work in reverse: you cannot swap an annuity for a life policy. The owner must stay the same, and the funds must move directly between insurers. Surrender charges from the Sun Life policy may still apply even though the exchange itself is tax-free.
Canceling During the Free Look Period
If you bought the policy recently, you may still be within the free look period, a window of roughly 10 to 30 days from the start of coverage during which you can cancel for a full refund of all premiums paid.8Progressive. What Is a Free Look Period for Life Insurance? The exact length depends on your state and policy type. No surrender charges apply and there is no tax event because you are receiving back what you paid in. Check the cover or declaration page for your deadline, and call Sun Life immediately if you are still inside it.
After You Submit the Form
Sun Life reviews the paperwork, verifies signatures, and confirms the policy number. If anything is missing or a signature does not match their records, expect a call or letter asking for corrections. Once the request clears, Sun Life sends a written confirmation that the policy has been terminated and no further premiums are due.
Any cash surrender value, net of charges and outstanding loans, arrives by check or direct deposit based on what you selected. Watch your bank statements for a few weeks to confirm that automatic premium withdrawals have stopped. If a draft hits your account after the cancellation date, contact Sun Life. You are entitled to a refund of premium collected for coverage that is no longer in force.