Sun Life U.S. expands Family Leave Insurance to Michigan and West Virginia

Rhea-AI Summary

Sun Life (NYSE:SLF) has expanded its Family Leave Insurance (FLI) offering to Michigan and West Virginia, bringing the total coverage to 16 states. FLI provides income replacement for family and bonding leave, complementing traditional short-term disability insurance.

The expansion allows employers to offer paid family leave benefits equally to all eligible employees, regardless of their location. The insurance is fully insured, making it accessible for small and mid-size employers without self-funding risks. Sun Life will begin quoting in Massachusetts next month, with additional state approvals expected throughout 2025.

The program aligns with the federal paid leave tax credit and features online claims submission and leave tracking capabilities for employers.

Positive

• Expansion into two new states increases market presence and revenue potential
• Product fills market gap in states without government programs
• Helps employers attract and retain talent across multiple states
• Aligns with permanent federal paid leave tax credit

Negative

• None.

Insights

Insurance Industry Analyst

Sun Life expands Family Leave Insurance to new states, strengthening its benefits portfolio amid growing paid leave demand.

Sun Life U.S. has strategically expanded its Family Leave Insurance (FLI) product to Michigan and West Virginia, with Massachusetts following next month. This expansion brings their FLI coverage to 17 states total, positioning Sun Life to capitalize on the growing demand for comprehensive paid leave benefits.

This move is particularly timely as it aligns with the recently permanent federal paid leave tax credit for employers. The FLI product cleverly complements Sun Life's existing short-term disability insurance by covering family and bonding leave, creating a more comprehensive benefits package for employers to offer.

The fully insured structure of FLI makes it especially attractive to small and mid-sized businesses that want to offer competitive benefits without self-funding risks. For Sun Life, this represents an incremental revenue opportunity in states without government paid leave programs, while leveraging their established expertise in disability and absence management.

This expansion demonstrates Sun Life's proactive approach to evolving workforce needs, particularly as remote work continues to blur geographic boundaries. By allowing employers to offer consistent benefits regardless of employee location, Sun Life is addressing a key pain point for companies with distributed workforces while potentially increasing their market penetration in these regions.

WELLESLEY, Mass., July 30, 2025 /PRNewswire/ -- Sun Life U.S. has expanded the availability of its Family Leave Insurance (FLI) offering to now include Michigan and West Virginia. FLI broadens workers' access to paid leave, givinga employers the option to provide a valuable benefit to their employees, even if they work in other states. While short-term disability (STD) insurance provides income replacement during a medical leave, FLI provides coverage for comparable income replacement for family or bonding leave, giving employees more comprehensive leave benefits.

Sun Life has long been an advocate for paid leave, working with multiple state legislatures over the last several years to include a private plan option alongside mandated programs. More recently, Sun Life has championed the federal paid leave tax credit for employers, which was made permanent in recent tax legislation. Sun Life FLI aligns with the current tax credit and will align with upcoming changes in the new legislation.

"We believe no one should have to choose between their job and caring for a loved one. 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 Sheila Sokolski, vice president, Product Strategy and Portfolio Management, Group Benefits, Sun Life U.S. "With FLI, employers can choose to offer paid family leave benefits to all employees equally, and they get an insurance product built using Sun Life's decades of disability leave and absence management expertise."

Sun Life FLI 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. 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 can contribute to economic growth by attracting more workers to states that allow insurers to offer the product. It also allows employers to recruit more competitively, particularly those that have offices in other states or hire remotely. Sun Life offers FLI in 14 other states: Alabama, Arizona, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, and Wyoming, and will begin quoting in Massachusetts next month.

With Sun Life FLI, employees have 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 on August 1 in Michigan, West Virginia and Massachusetts. Additional states are 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 March 31, 2025, Sun Life had total assets under management of C$1.55 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 8,300 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

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SOURCE Sun Life U.S.

FAQ

Which states does Sun Life's Family Leave Insurance now cover?

Sun Life's FLI now covers 16 states, including the newly added Michigan and West Virginia, along with Alabama, Arizona, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, and Wyoming.

What benefits does Sun Life's Family Leave Insurance (FLI) provide?

Sun Life's FLI provides income replacement for family and bonding leave, complementing short-term disability insurance and allowing employees to take paid time off to care for family members.

When will Sun Life (SLF) begin offering Family Leave Insurance in Massachusetts?

Sun Life will begin quoting FLI in Massachusetts on August 1, 2025, alongside Michigan and West Virginia.

How does Sun Life's FLI benefit employers?

The FLI program offers fully insured coverage for small and mid-size employers, online claims submission, leave tracking capabilities, and helps attract talent by providing competitive benefits across multiple states.

How does Sun Life's Family Leave Insurance align with federal regulations?

Sun Life's FLI aligns with the permanent federal paid leave tax credit for employers and will adapt to upcoming changes in the new legislation.