Sun Life LTC hybrid pits insurer against Lincoln National

Sun Life Financial Inc. has officially thrown its hat into the LTC hybrid ring — a move that will put the carrier in direct competition with Lincoln National Life Insurance Co. Sun Life is preparing to launch a long-term-care and life insurance combination product called “Sun Care” in the fourth quarter, according to Sun Life U.S. president Westley V. Thompson. A second hybrid product, which would combine an annuity with long-term-care features, is also on the drawing board. A hybrid life product would allow advisers to reposition assets to cover for a life insurance need. If long-term care is needed, a client can draw down on the product's LTC feature, Mr. Thompson added. Sun Life's entry into the hybrid space, where it will compete with Lincoln National's MoneyGuard Reserve, does not come as a huge surprise. The carrier has in recent years recruited a number of executives from Lincoln National — so many, in fact, that some industry observers have come to dub the Toronto-based insurer “Lincoln North.” Mr. Thompson, for one, was president of retirement solutions at the Radnor, Pa.-based Lincoln National before joining Sun Life in 2008. Other Lincoln alumni now at Sun Life include Terrence J. Mullen, president of Sun Life Financial Distributors Inc., and Sun Life Financial president Jon A. Boscia, who served as president of Lincoln National for nearly a decade. That group of executives was the brain trust in product development at Lincoln National, particularly in the hybrid LTC arena. What's more, Sun Life in January hired Lincoln's former head of MoneyGuard Reserve sales Bob Klein as vice president, strategic planning and linked benefits “We know the formula, the inertia of what we built,” said Mr. Thompson. “We have an opportunity [at Sun Life] to be a leader in linked benefits.” It's hard to argue with the group's track record, that's for sure. “They have expansive expertise in it,” said Tamiko Toland, managing director for retirement income consulting at Strategic Insight. A hybrid product would be a “natural fit” for the carrier, she added, and would no doubt get the attention of advisers. “There is always room for a competitor, especially if they do something different,” Ms. Toland said. “People like to be able to choose.”