Canadians could claim part of $213.5-million Sun Life settlement
A decades-long class action lawsuit in Canada against Sun Life and Met Life has finally reached a proposed settlement.
On Friday, Sun Life announced that a settlement in principle had been reached to resolve a class action due to individual life insurance policies sold and issued by the Metropolitan Life Insurance Company (MetLife) in the 1980s and 1990s. The lawsuit does not include Sun Life products or policies, as MetLife was acquired by Sun Life.
The allegations
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The lawsuit was brought forward by a group of Canadians who had universal life insurance policies with MetLife between 1987 and 1998. The class action against Sun Life was filed in 2010 in the Ontario Superior Court of Justice, and Kim Spencer McPhee Barristers P.C. is the court-appointed class counsel.
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 continues to allege that policyholders may have had to pay more than the maximum premium limits previously stated.
Previous allegations claimed that MetLife sold policies that were misrepresented, but courts ruled that those claims couldn’t be included in the class action. Instead, those claims can only be pursued individually by each policyholder.
Are you eligible?
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Any Canadian who owned or owns a Universal Plus, Flexiplus, or Optimet policy from MetLife sold during a certain period could be eligible.
Class members have been divided into three categories:
- Universal Plus Class — those who owned or own this policy during 1987 through 1998, including any successor owners
- Flexiplus Class — Canadians who purchased this policy through MetLife from 1987 through 1998, including any successor owners, whose monthly costs of insurance and/or administration fee increased
- Optimet Class — policyholders who owned or own this policy from 1987 through 1998, including any successor owners who were charged an increased insurance rate
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, which would lead to about a $145 hit to its Q1 2026 reported net income.
However, it’s not yet clear how much each class member could receive.
What should you do next?
If you’re a policyholder or beneficiary who meets the eligibility requirements, you can register your information online. You’ll be asked to provide your personal information, your status (if you’re a policyholder, a relative of one, or a representative), and your contact information. You’ll also have to provide information on the type of policy you have, if the policy is still in force, and if you still have a copy of the policy.
The settlement still needs to be approved by the court at a scheduled date. More information will be available on the class action website after June 1.
Canadians can also find out if they’re eligible for other settlements in class actions against CIBC and Estée Lauder.