Sun Life U.S. expands Family Leave Insurance to Arizona, Wyoming and Pennsylvania

Rhea-AI Summary

Sun Life U.S. has expanded its Family Leave Insurance (FLI) to three new states - Arizona, Wyoming, and Pennsylvania - bringing the total coverage to 14 states. The expansion will be effective May 1, with more states expected throughout 2025.

Key highlights:

• FLI offers fully insured paid family leave coverage in states without mandated programs
• Currently available in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, and Texas
• Aligns with federal paid leave tax credit
• Provides up to 12 weeks of paid leave for family care

The program features online claims submission and leave tracking capabilities for employers. This expansion aims to bridge the gap between unpaid FMLA leave and the need for paid family leave benefits. Joi Tillman, president of Group Benefits at Sun Life U.S., emphasizes that employees shouldn't have to choose between work and family care. The insurance offering helps small and mid-size employers provide competitive benefits without self-funding risks.

Positive

• Expansion of Family Leave Insurance (FLI) to 3 new states (Arizona, Wyoming, Pennsylvania), bringing total coverage to 14 states
• Product offering strengthens competitive position in states without government programs
• Fully insured coverage model reduces risk for small and mid-size employers while generating recurring revenue
• Strategic expansion supports talent recruitment value proposition for client companies
• Digital infrastructure in place (online claims submission and tracking) enhances operational efficiency

Negative

• None.

Insights

Financial Services Analyst

Sun Life expands family leave insurance to three new states, enhancing its employee benefits portfolio and market reach.

Sun Life U.S. has expanded its Family Leave Insurance (FLI) offering to Arizona, Wyoming and Pennsylvania, increasing its footprint to 14 states with more expansions planned for 2025. This strategic growth targets a significant market gap by providing paid family leave benefits in states without government-mandated programs.

The FLI product is structured as fully insured coverage, making it particularly attractive to small and mid-sized employers who want to offer competitive benefits without assuming self-funding risks. Sun Life has positioned this offering at the intersection of regulatory trends and workforce expectations, leveraging decades of expertise in disability leave management.

This expansion represents a calculated approach to growing Sun Life's voluntary benefits business. By targeting states without mandated programs while maintaining capacity to administer private plans in states with government programs, Sun Life is executing a comprehensive market coverage strategy.

The company's advocacy for paid leave legislation and private plan options further demonstrates strategic positioning for potential regulatory developments. This benefits expansion enhances Sun Life's value proposition to employers seeking talent attraction and retention tools in a competitive labor market.

While no financial projections are provided, this represents a logical extension of Sun Life's existing capabilities into expanding markets, potentially creating new revenue streams from previously untapped employer segments.

WELLESLEY, Mass., April 28, 2025 /PRNewswire/ -- Sun Life U.S. has expanded the availability of its Family Leave Insurance (FLI) offering to now include Arizona, Wyoming and Pennsylvania, with additional states poised for later this year. This brings the total number of states where Sun Life offers its fully insured paid family leave coverage to 14, including Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee and Texas. FLI broadens workers' access to paid leave, giving employers the option to easily provide a valuable benefit to their employees when there isn't a state-mandated program in place. Sun Life has long been an advocate for paid leave, working with state legislatures to include a private plan option alongside mandated programs and supporting legislative proposals that would extend the employer federal paid leave tax credit. Sun Life FLI aligns with the current tax credit and will align with changes in the future.

"While the Family and Medical Leave Act provides unpaid leave up to 12 weeks, many employees have the difficult decision of whether they can afford to take time off to tend to their families," said Joi Tillman, president, Group Benefits, Sun Life U.S. "With FLI, employers can choose to offer paid family leave benefits in a structure that aligns with their business and gives their employees a valuable benefit. We believe no one should have to choose between their job and caring for a loved one."

Sun Life FLI is built with decades of disability leave management and return-to-work expertise. The benefit fills a substantial gap for employers in states without government programs, and is available to all eligible employees regardless of the state they work in. Sun Life FLI is offered as fully insured coverage, helping small and mid-size employers offer the benefit without the risk of self-funding. Sun Life also administers private paid family and medical leave (PFML) in many states that have mandated programs.

"FLI contributes to economic growth by attracting more workers to these regions and supporting the return-to-work process for those who go on leave," said Sheila Sokolski, vice president, Product Strategy and Portfolio Management, Sun Life U.S. "FLI also gives employers a powerful tool for talent recruitment and retention, as more professionals seek a robust benefits offering when considering jobs."

With Sun Life FLI, employees get the benefit of Sun Life's online claims submission, and employers can track employees' leave details, supporting overall health and productivity management. A recording of Sun Life's recent webinar on FLI can be found here.

Sun Life FLI will be available for quoting in Arizona, Wyoming and Pennsylvania on May 1, with additional states expected to approve filing throughout 2025. For more information visit www.sunlife.com/family.

About Sun Life
Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of December 31, 2024, Sun Life had total assets under management of C$1.54 trillion. For more information, please visit www.sunlife.com.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.

Sun Life U.S. is one of the largest providers of employee and government benefits, helping approximately 50 million Americans access the care and coverage they need. Through employers, industry partners and government programs, Sun Life U.S. offers a portfolio of benefits and services, including dental, vision, disability, absence management, life, supplemental health, medical stop-loss insurance, and healthcare navigation. Sun Life employs more than 8,500 people in the U.S., including associates in our partner dental practices and affiliated companies in asset management. Group insurance policies are issued by Sun Life Assurance Company of Canada (Wellesley Hills, Mass.), except in New York, where policies are issued by Sun Life and Health Insurance Company (U.S.) (Lansing, Mich.). For more information visit our website and newsroom.

Media contacts

Devon Fernald
Sun Life U.S.
Devon.Portney.Fernald@sunlife.com
781-800-3609

Connect with Sun Life U.S.

https://www.facebook.com/SLFUnitedStates
https://www.linkedin.com/company/sun-life-financial

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SOURCE Sun Life U.S.

FAQ

Which new states did Sun Life (SLF) add to its Family Leave Insurance coverage in 2025?

Sun Life expanded its Family Leave Insurance (FLI) to Arizona, Wyoming and Pennsylvania in April 2025, bringing the total number of covered states to 14.

How many states now offer Sun Life's Family Leave Insurance program as of 2025?

Sun Life's Family Leave Insurance is now available in 14 states, including the newly added Arizona, Wyoming and Pennsylvania, along with Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee and Texas.

When will Sun Life (SLF) begin quoting Family Leave Insurance in Arizona, Wyoming and Pennsylvania?

Sun Life will begin quoting Family Leave Insurance (FLI) in Arizona, Wyoming and Pennsylvania starting May 1, 2025, with additional states expected to approve filing throughout 2025.

What benefits does Sun Life's Family Leave Insurance offer to employers and employees?

Sun Life's FLI offers fully insured paid family leave coverage, online claims submission, leave tracking for employers, and paid time off for employees to care for family without risking their jobs. It helps small and mid-size employers offer benefits without self-funding risks.

How does Sun Life's Family Leave Insurance complement the Family and Medical Leave Act?

While the Family and Medical Leave Act provides up to 12 weeks of unpaid leave, Sun Life's Family Leave Insurance provides paid leave benefits, ensuring employees don't have to choose between their job and caring for family members.