Sun Life U.S. expands Family Leave Insurance to seven states, bringing important coverage to millions of workers

Rhea-AI Summary

Sun Life U.S. (SLF) expanded its Family Leave Insurance (FLI) to seven additional states — Illinois, Missouri, Nebraska, Nevada, South Dakota, Utah, and Wisconsin — bringing total availability to 24 states. The company said Sun Life FLI is a standalone, fully insured paid family leave product that aligns with current tax credits and covers employees regardless of work state. New-state quoting opens on November 1, 2025, and Sun Life said it expects additional state filings in 2026. The offering targets small and mid-size employers and emphasizes online claims and leave tracking to support employee productivity and return-to-work management.

Positive

• 7 new states added to FLI availability
• Total availability increased to 24 states
• New-state quoting begins on November 1, 2025
• FLI offered as a standalone, fully insured policy

Negative

• Further expansion depends on additional state filings and approvals in 2026
• New coverage in seven states is only available for quoting starting Nov 1, 2025

Insights

Benefits Strategy Analyst

Sun Life widened its Family Leave Insurance to seven states, raising its market footprint to 24 states.

Sun Life now offers standalone Family Leave Insurance in Illinois, Missouri, Nebraska, Nevada, South Dakota, Utah, and Wisconsin, allowing employers to provide uniform paid family leave across state lines and to quote coverage starting November 1. The product is offered fully insured, not as a short-term disability rider, which preserves budget predictability for small and mid-size employers and gives brokers clearer placement options.

The expansion depends on state filings and regulatory approvals; Sun Life notes it expects additional state approvals in 2026. Key risks include differential state mandates and tax-credit alignment that could change the product economics for employers. Watch for quoting activity from November 1, follow any specific state filing approvals in 2026, and monitor uptake among small and mid-size employers over the next 6–12 months.

WELLESLEY, Mass., Oct. 29, 2025 /PRNewswire/ -- Sun Life U.S. has expanded the availability of its Family Leave Insurance (FLI) offering to seven new states: Illinois, Missouri, Nebraska, Nevada, South Dakota, Utah, and Wisconsin, bringing the total number of states to 24. FLI gives employers the option to easily provide a valuable benefit to their employees, even for those working in states with a mandated paid leave program in place. When an employer offers FLI, they can cover all employees with the same benefit, no matter where they work. Sun Life FLI aligns with the current tax credit and will align with changes in the future.

"When an employee has a sick or injured family member, they often have the difficult decision of whether they can afford to take time off to tend to their loved one," said Sheila Sokolski, vice president, Product Strategy and Portfolio Management in Group Benefits, Sun Life U.S. "With FLI, employers can offer paid family leave benefits in a structure that aligns with their business and provides their employees with a valuable benefit. We believe no one should have to choose between their job and caring for a loved one."

Sun Life's 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 designed to cover all eligible employees regardless of the state they work in. Sun Life also administers private paid family and medical leave (PFML) in many states that have mandated programs.

Offered as fully insured coverage, Sun Life FLI helps small and mid-size employers offer a highly sought-after benefit without the risk of self-funding. While some insurers choose to offer FLI as a rider within short-term disability (STD), Sun Life's FLI is a standalone policy. This provides more market flexibility to benefit consultants and greater employer reach.

Sun Life FLI supports health and productivity for both employers and employees. Employees get the benefit of Sun Life's online claims submission and employers can easily track employees' leave details. Sun Life's mid-year update webinar on FLI can be found here.

Sun Life FLI will be available for quoting in Illinois, Missouri, Nebraska, Nevada, South Dakota, Utah and Wisconsin on November 1. Sun Life expects additional states to approve filing in 2026. 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 June 30, 2025, 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 8,300 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

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 states will Sun Life U.S. (SLF) add FLI quoting for on November 1, 2025?

Sun Life will open quoting for FLI in Illinois, Missouri, Nebraska, Nevada, South Dakota, Utah, and Wisconsin on November 1, 2025.

How many states will Sun Life FLI be available in after the October 29, 2025 expansion?

After the expansion, Sun Life FLI will be available in 24 states.

Is Sun Life FLI a rider to short-term disability or a standalone policy for SLF?

Sun Life offers FLI as a standalone policy, not a short-term disability rider.

Will Sun Life FLI align with tax credits and future tax changes for SLF?

Yes, Sun Life said FLI aligns with current tax credits and will align with future changes.

What employer sizes does Sun Life target with FLI (SLF)?

Sun Life positions FLI for small and mid-size employers using fully insured coverage to avoid self-funding risk.