Sun Life U.S. expands Family Leave Insurance to Georgia, Louisiana, Mississippi and South Carolina

Rhea-AI Summary

Sun Life U.S. has expanded its Family Leave Insurance (FLI) to Georgia, Louisiana, Mississippi and South Carolina, bringing the total to 11 states. The fully insured offering enables employers to provide paid family leave benefits, addressing the gap between unpaid FMLA leave and employees' financial needs.

The expansion builds on existing coverage in Alabama, Arkansas, Florida, Kentucky, Oklahoma, Tennessee and Texas. FLI aligns with the federal paid leave tax credit and helps employers, particularly small and mid-sized businesses, offer competitive benefits without self-funding risks.

The program features online claims submission and leave tracking capabilities. The new states will begin quoting on February 1, with additional state approvals expected in 2025.

Positive

• Expansion into 4 new states increases market presence and revenue potential
• Alignment with federal tax credits enhances product attractiveness
• Targets underserved market of small and mid-sized businesses
• Product serves as competitive advantage for talent recruitment

Negative

• None.

Insights

Insurance Industry Analyst

Sun Life's strategic expansion of Family Leave Insurance to Georgia, Louisiana, Mississippi and South Carolina marks a significant development in the company's market positioning and growth strategy. This brings their FLI coverage to 11 states, predominantly in the Southeast, where state-mandated paid leave programs are typically absent.

The expansion carries several strategic advantages: First, by targeting states without government programs, Sun Life is establishing an early-mover advantage in underserved markets. This positions them favorably against competitors in the rapidly evolving benefits landscape, where paid leave has become a important differentiator for talent acquisition.

The fully insured structure is particularly noteworthy for three reasons:

• It reduces financial risk for small and mid-size employers who might otherwise find self-funded programs prohibitively expensive
• It creates a predictable revenue stream for Sun Life, enhancing the company's earnings stability
• It leverages Sun Life's existing infrastructure and expertise in absence management, creating operational efficiencies

The timing of this expansion is strategic, coinciding with increasing corporate focus on comprehensive benefits packages and employee retention. By integrating digital claims submission and tracking capabilities, Sun Life is also demonstrating technological competitiveness, which is important for market penetration and customer satisfaction.

Looking ahead, this expansion signals Sun Life's commitment to growing its presence in the voluntary benefits space, a sector experiencing significant growth. The company's ability to align with federal tax credits while maintaining flexibility for future regulatory changes showcases strong product development foresight and potential for sustained growth in this segment.

WELLESLEY, Mass., Feb. 10, 2025 /PRNewswire/ -- Sun Life U.S. has expanded its Family Leave Insurance (FLI) offering to Georgia, Louisiana, Mississippi and South Carolina, with more states on the way. Sun Life currently offers FLI in Alabama, Arkansas, Florida, Kentucky, Oklahoma, Tennessee and Texas. The fully insured offering broadens workers' access to paid leave, giving more employers the option to easily provide a valuable benefit to their employees. Sun Life has long been an advocate for paid leave, working with state programs to include a private plan option and supporting legislative proposals to expand access to the employer federal paid leave tax credit. Sun Life FLI aligns with the current tax credit and will align with changes in the future.

"We believe no one should have to choose between their job and caring for a loved one," said Joi Tillman, 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 tend to their families. With FLI, employers can choose to offer paid family leave benefits in a structure that aligns with their business and gives employees the ability to return to work less stressed and ready to be productive."

Built on decades of absence and leave management, and return-to-work expertise, 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. 

"We now offer FLI in 11 states across the U.S. This will contribute 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. "In addition to giving workers access to paid leave, FLI 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. Sun Life's recent webinar on FLI can be found here.

Sun Life FLI will be available for quoting in Georgia, Louisiana, Mississippi and South Carolina on February 1, with additional states expected to approve filing in 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 September 30, 2024, Sun Life had total assets under management of C$1.51 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 February 2025?

Sun Life added Georgia, Louisiana, Mississippi and South Carolina to its Family Leave Insurance coverage in February 2025.

How many states does Sun Life's (SLF) Family Leave Insurance now cover in total?

Sun Life's Family Leave Insurance now covers 11 states in total.

When will Sun Life (SLF) begin quoting Family Leave Insurance in the new states?

Sun Life will begin quoting Family Leave Insurance in the new states on February 1, 2025.

What are the benefits of Sun Life's (SLF) Family Leave Insurance for employers?

Sun Life's FLI offers fully insured coverage, helping small and mid-size employers provide paid leave benefits without self-funding risks, while serving as a tool for talent recruitment and retention.

How does Sun Life (SLF) Family Leave Insurance complement FMLA?

While FMLA provides up to 12 weeks of unpaid leave, Sun Life's FLI provides paid leave benefits, allowing employees to take necessary time off without financial strain.