Sun Life agrees to $213.5M settlement for overcharged insurance policyholders
Class-action lawsuit targeting MetLife policies sold in the 1980s and 1990s moves toward approval, with hearing set for September.
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Canadians who held certain MetLife insurance policies decades ago could soon receive payouts after Sun Life Financial agreed to a $213. 5-million settlement. Legal firm Kim Spencer McPhee Barristers announced Tuesday that an agreement in principle has been reached, moving the decades-long class action forward.
An approval hearing is scheduled for September 8, 2026, to finalize the amount and conditions. The lawsuit targets universal life insurance policies sold between 1987 and 1998. Policyholders allege they were overcharged for insurance costs and fees beyond the maximum premium limits stated in their policies.
Sun Life took over administration of MetLife policies in 1998. Two groups are eligible to claim: those who held Universal Plus policies between 1987 and 1998 can claim compensation for costs paid beyond maximum amounts; those with Flexiplus policies during that period whose monthly insurance costs or administration fees increased can claim for a portion of excess insurance costs plus the administrative fee increase.
A third group—Optimet policyholders—was excluded after evidence showed their increases were pre-set and permitted under policy terms. The amount each claimant receives will vary depending on their policy type and the excess they paid. Policyholders and beneficiaries meeting the requirements can register online for updates by providing personal information and policy details.