Canadians could soon get money as Sun Life agrees to $213.5M settlement
An ongoing class-action lawsuit could soon result in payouts for Canadians after Sun Life Financial agreed to a settlement.
On Tuesday, legal firm Kim Spencer McPhee Barristers P.C. shared an update stating that “an agreement in principle” has been reached with Sun Life for the proposed $213.5-million settlement.
It further outlines the types of compensation eligible Canadians will receive. In the update, only two groups of policyholders are now included, after one category was excluded from receiving compensation under the settlement.
An approval hearing will take place on Sept. 8, 2026, which will finalize the amount and conditions.
The settlement will finally resolve a decades-long class action against Sun Life and Met Life related to individual life insurance policies sold and issued by the Metropolitan Life Insurance Company (MetLife) in the 1980s and 1990s. However, the lawsuit does not include Sun Life products or policies, as MetLife was acquired by Sun Life.
What were the allegations?
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The lawsuit was brought forward by a group of Canadians who held universal life insurance policies with MetLife between 1987 and 1998. A class action against Sun Life was filed in the Ontario Superior Court of Justice in 2010.
According to the Sun Life class action website, the lawsuit claims policyholders may have been overcharged for insurance costs and fees on certain MetLife policies sold in the late ’80s and ’90s. Sun Life took over policy administration in 1998.
The lawsuit alleges that policyholders paid more than the maximum premium limits previously stated.
Are you eligible?
You could be eligible if you owned or currently own a Universal Plus or Flexiplus policy from MetLife sold during a certain period.
Canadians who can file a claim have been divided into two categories:
- Universal Plus Class — Canadians who owned or currently own Universal Plus policies between 1987 and 1998, including any successor owners. If you’re eligible for this claim, you could receive financial compensation for the cost of insurance that had been paid beyond the maximum amounts set in your policy.
- Flexiplus Class — This applies to Canadians who purchased Flexiplus policies through MetLife between 1987 and 1998, as well as any successor owners, whose monthly costs of insurance and/or administration fee increased. According to the proposed settlement, Flexiplus Class members will be paid for a portion of the past insurance cost, in addition to the administrative fee increase.
According to the class action website, Optimet class members who owned or own this policy from 1987 to 1998 are no longer included in the settlement.
Sun Life faced allegations that it “improperly increased the cost of insurance and administrative fees” beyond the maximum limit for Optimet policyholders. However, evidence proved that these increases were actually pre-set increases allowed under the policy terms.
How much could you receive?
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If the settlement is approved, Sun Life would pay up to $213.5 million to eligible class members.
The update doesn’t mention exactly how much each class member could receive. The amount will vary depending on the type of policy they have had or currently have and the “excess cost” they paid for insurance or administration costs.
What should you do next?
Policyholders or beneficiaries who meet the requirements should register online for updates.
In addition to your personal information and contact details, you’ll need to provide details about your policy type and whether the policy is still active. You’ll also be asked if you still have a copy of the policy.
The settlement still needs to be approved by the court on Sept. 8, 2026.
Canadians could also qualify for other settlements in class actions against LastPass or the Canada Revenue Agency (CRA).