Sun Life U.S. now offers Family Leave Insurance to help more workers access paid leave benefits to care for loved ones

Rhea-AI Summary

Sun Life U.S. introduces Family Leave Insurance (FLI) in select states to provide paid leave benefits, aligning with legislative proposals for employer paid leave tax credits. The offering aims to bridge the gap for employers without government programs, enhancing talent recruitment and retention.

Market Research Analyst

Introducing Family Leave Insurance (FLI) in select states represents a strategic expansion for Sun Life U.S., potentially enhancing its competitive positioning within the benefits sector. This move may appeal to a growing demographic of workers who prioritize work-life balance and family well-being, which could influence talent acquisition and retention rates. As more states approve FLI, Sun Life's market share in the insurance sector could see incremental growth.

Moreover, the alignment with existing tax credits and the adaptability to future legislative changes demonstrates Sun Life's proactive approach to regulatory compliance, which could mitigate risks associated with policy shifts. This foresight may provide reassurance to investors about the company's long-term stability and its ability to navigate the regulatory landscape effectively.

Financial Analyst

The introduction of FLI as a fully insured product could result in a diversified revenue stream for Sun Life U.S., especially if the uptake among small and mid-size employers is significant. By reducing the financial burden on these businesses, which might otherwise be hesitant to self-fund such benefits, Sun Life could capture a previously untapped customer segment.

From a financial perspective, the success of this product will depend on the pricing strategy, claims experience and the management of associated costs. Investors should monitor the adoption rate and any impact on Sun Life's financials, such as changes in premiums earned or claims paid, which could affect profitability margins.

Economist

The provision of FLI by Sun Life U.S. may have broader economic implications beyond the company itself. By facilitating paid family leave, the product can indirectly contribute to workforce stability and productivity. Economically, this could lead to reduced turnover costs for businesses and potentially stimulate consumer spending as employees have more financial security during family leave.

Additionally, the expansion of FLI across multiple states could serve as a catalyst for regional economic growth, as businesses that offer competitive benefits packages may attract a more skilled workforce, driving innovation and economic activity. The impact of such benefits on labor market dynamics and regional economic health will be an area of interest for economists and policymakers alike.

WELLESLEY, Mass., Feb. 14, 2024 /PRNewswire/ -- Sun Life U.S. is offering Family Leave Insurance (FLI) in Alabama, Arkansas, Tennessee, and Texas, with more states on the way. The fully insured offering broadens workers' access to paid leave, giving more employers the option to provide a valuable benefit to their employees more easily. Sun Life has long been an advocate for paid leave, working with state programs to include a private option and supporting the recent legislative proposal from Senators Deb Fischer and Angus King to expand access to the employer paid leave tax credit. Sun Life FLI aligns with the current tax credit and will align with changes in the future.

"We believe every worker in this country should have the option to take paid leave, and no one should have to choose between their job and caring for a loved one," said David Healy, president, Group Benefits, Sun Life U.S. "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 address their needs. Employers in these states can choose to offer paid family leave benefits to their employees, who will have the ability to care for a loved one when necessary and return to work less stressed, and ready to be productive."

Built on decades of industry experience and expertise on leave, absence management, and return-to-work models, Sun Life FLI fills a substantial benefits gap for employers in states without government programs. Sun Life FLI is offered as fully insured coverage, helping small and mid-size employers offer the benefit without the risk of self-funding. 

"In addition to giving workers access to paid leave, FLI gives employers a powerful tool for talent recruitment and retention, as more often, workers seek out a robust benefits offering when considering jobs," said Sheila Sokolski, assistant vice president, Product and Marketing, Sun Life U.S. "We are pleased to expand this benefit in states that give employers the option to offer it, which will also contribute to economic growth."

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.

Sun Life FLI is available for quoting in Alabama, Arkansas, Tennessee and Texas on April 1, with other states expected to approve filing in the coming months. For more information visit https://www.sunlife.com/us/en/employers/products-and-services/family-leave-insurance/.

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, 2023, Sun Life had total assets under management of C$1.40 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 more than 50 million Americans access the healthcare 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

Anjie Coplin
Sun Life U.S.
Anjie.Coplin@sunlife.com
214-549-1553

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

What is Sun Life U.S. offering in select states?

Sun Life U.S. is offering Family Leave Insurance (FLI) in Alabama, Arkansas, Tennessee, and Texas.

What is the benefit of Sun Life FLI for employers?

Sun Life FLI provides a powerful tool for talent recruitment and retention, as workers often seek out robust benefits when considering jobs.

How can employees access Sun Life FLI benefits?

Employees can benefit from Sun Life's online claims submission, while employers can track leave details to support overall health and productivity management.

When will Sun Life FLI be available in select states?

Sun Life FLI will be available for quoting in Alabama, Arkansas, Tennessee, and Texas on April 1, with other states expected to approve filing in the coming months.