SUPPLEMENT DATED AUGUST 17, 2012

TO

PROSPECTUS DATED MAY 1, 2003

FOR FUTURITY ACCOLADE NY

PROSPECTUSES DATED MAY 1, 2007

FOR SUN LIFE FINANCIAL MASTERS REWARD NY AND

SUN LIFE FINANCIAL MASTERS SELECT NY

PROSPECTUSES DATED MAY 21, 2007

FOR MFS REGATTA GOLD NY

AND FUTURITY NY

PROSPECTUSES DATED MAY 2, 2011

FOR SUN LIFE FINANCIAL MASTERS I SHARE NY,

SUN LIFE FINANCIAL MASTERS CHOICE II NY,

SUN LIFE FINANCIAL MASTERS FLEX II NY,

AND SUN LIFE FINANCIAL MASTERS EXTRA II NY

ISSUED BY SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK

SUN LIFE (N.Y.) VARIABLE ACCOUNT C

On August 9, 2012, shareholders approved the reorganization of the MFS Growth Portfolio (“Growth Portfolio”) into the MFS Growth Series (“Growth Series”).  After the close of business on August 17, 2012, all of the assets of the Growth Portfolio will be transferred to the Growth Series and shareholders of the Growth Portfolio will receive shares of the Growth Series in exchange for their Growth Portfolio shares.  The Growth Portfolio is no longer an available investment option and all references to that Portfolio are deleted from the prospectus.

Please retain this supplement with your prospectus for future reference.