Important Financial Decisions

Having merged with AXA Equity and Law in 1997 to become AXA Sun Life, the former Sun Life Assurance Society plc became part of the French-based AXA insurance group. It changed to its current name in 2009 as the trading name of AXA Sun Life plc. The company actually started as the Sun Fire Office Board in 1810 and so celebrates its 200th anniversary in 2010.

Sun Life Direct's big speciality is life cover and particularly over 50s life cover. It has been offering life cover plans since 1979 and had over 750,000 customers by the middle of 2010.

The company offers two main types of life cover. Term insurance provides a fixed payment on death during the set term of the policy in return for a regular premium payment. It is generally aimed at younger clients because it is intended to provide cover for a specific commitment (such as mortgage repayments or school fees) that will eventually end. Whole of life plans provide cover for the whole of the policyholder's life provided that premiums continue to be paid. These plans are specifically for older policyholders who are preparing for the end of their lives and are available for various age groups. Each plan has different features but all promise guaranteed acceptance with no need for a medical.

All life plans provide lump sum payments on death that can be used to pay funeral costs or other expenses. With UK cremation costs estimated at £2448 in August 2009, up £720 on five years previously, there is an obvious need to provide for this level of expense. Sun Life Direct has a number of funeral plans, which are versions of whole of life policies designed specifically to cover funeral costs. These are all for older clients and provide a lump sum on death in return for an agreed premium. The differences between these policies and normal whole of life cover are that the amount of cover is paid directly to the company arranging the funeral and that arrangements for the funeral can be made in advance as part of the plan. Different levels of premium will either cover the full or partial costs of the funeral.

Due to its association with over 50s insurance, Sun Life Direct has been represented in its TV advertising campaigns by veteran celebrities, with Michael Parkinson and Annette Crosbie following the likes of Gloria Hunniford and June Whitfield. However, the company's 200th anniversary in 2010 coincided with an announcement that it is looking for a brand ambassador to front an advertising campaign aimed at younger customers. A new range of life protection, intended for the 30-40 age group, is due to launch at the start of 2011.