One of our goals at Insurance and Estates is to provide our readers with the knowledge they need to make the best decision regarding the company and policy they choose. In the following Foresters review, we will cover the strengths of the company, its ratings, its history and its various products and features. Is Foresters the right choice for you?
Review of Foresters Financial
Finding the company that best fits your needs, goals and objectives is no easy task. There are over 800 companies offering life insurance and annuities. With so many carriers in the marketplace, it can be a bit overwhelming to whittle your decision down to the top 10 best life insurance companies.
About Foresters Financial
Founded in 1874, Foresters has been around for over 140 years. Foresters is a not-for-profit company, called a fraternal benefit society. To become a Foresters member, you can apply as part of your life insurance purchase.
Foresters Financial offers its various life insurance products through The Independent Order of Foresters and Foresters Life Insurance and Annuity Company. The company boasts over $34 Billion in total funds under management.
As of September 2017, The Independent Order of Foresters (Foresters Financial) financial strength, as measured by A.M. Best Company, is rated “A” (Excellent), which signifies the company’s overall financial strength and claims-paying ability.
Foresters Financial offers products and services in four different areas:
- Term Life
- Whole Life
- Universal Life
- Variable Universal Life
- Variable Life
Foresters Mutual Funds include both core and non-core funds with varying degrees of risk.
- Growth and Income
- Investment Grade
- Total Return
Retirement and Savings Plans
Foresters offers plans to help you prepare your financial future.
Foresters offers different annuities, with either single or flexible payments options.
- Deferred Fixed Annuities
- Deferred Variable Annuities
- Immediate Fixed Annuities
- Longevity Fixed Annuities
Foresters Life Insurance Policies
Foresters Financial offers a full range of both term life and permanent life insurance coverage.
Although there are benefits to all types of coverage, in our opinion there is a clear winner when accessing the benefits between term life insurance vs whole life insurance.
Benefits of Term Life Insurance
- Lower Initial Cost
- Income Protection
- Mortgage Protection
- Conversion Option
Benefits of Whole Life Insurance
- Business Succession Planning
- Buy Sell Agreements
- Key Man Insurance
- Estate Planning
- Infinite Banking
- Executive Bonus Plans
- Deferred Compensation Plans
- Retirement Planning
- Wealth Building
Foresters Life Insurance Policies [Plans and Features]
Foresters Financial offers a comprehensive line of life insurance policies, including both term life and permanent life insurance protection.
Foresters Term Life Insurance
Foresters Life Insurance and Annuity Company offers level term coverage with 10, 15, 20, 25 and 30 year convertible term life insurance policies available.
The following riders are included at no additional charge:
- Common Carrier Accidental Death Rider: Pays your beneficiary an additional death benefit if you die due to an accidental death that occurs while you are a fare-paying passenger on a common carrier.
- Family Health Benefit Rider: A benefit that pays out if your family has expenses that occur due to natural disasters.
- Accelerated Death Benefit Rider: A portion of the death benefit is available if you are diagnosed with a qualifying illness, which may include critical, chronic, and terminal illnesses.
Universal Life Insurance
Offered through The Independent Order of Foresters, SMART Universal Life Insurance provides flexible permanent coverage with both a death benefit and cash value growth. The policy offers a 10 year no lapse guarantee as long as you pay your premiums. In addition, the policy offers a guaranteed 3% interest rate. Further, the product offers additional riders at no extra cost.
- Common Carrier Accidental Death Rider
- Family Health Benefit Rider
- Accelerated Death Benefit Rider
You can also add additional riders, including:
- Children’s Term Rider: term coverage that can be converted to permanent coverage down the road. An inexpensive choice when considering life insurance for children.
- Accidental Death Rider: additional death benefit if death is due to accidental bodily injury.
- Disability Income Rider (Accident Only): provides a regular monthly income benefit for up to two years.
- Waiver of Monthly Deductions Rider: your premium is waived if you are totally disabled and unable to work for at least 6 months.
Variable Universal Life
Variable Universal Life from Foresters Life Insurance and Annuity Company offers the benefits of Universal Life with an additional opportunity to grow your cash value through the allocation of premiums to professionally managed sub accounts or a fixed account.
The death benefit can be increased or decreased at any time and you can choose two different death benefit options:
- Option A. Death benefit is equal to the policy’s “face amount.”
- Option B. Death benefit is equal to the sum of the policy’s face amount plus the total Cash Value.
Whole Life Insurance
Foresters offers 4 different whole life insurance plans.
- Plan Right Whole Life Insurance
- Whole life protection to age 121.
- Your Legacy Whole Life Insurance
- Single premium whole life insurance
- Interest Sensitive Whole Life Insurance
- Ordinary life insurance
- Advantage Plus Whole Life Insurance
Whole Life Insurance Guarantees
Whole life insurance is permanent coverage and offers specific guarantees, including:
- Guaranteed death benefit,
- Guaranteed cash accumulation and
- Guaranteed level premiums.
Additional cash value growth is available through dividends. Although not guaranteed, Foresters has paid dividends
Dividends are valuable and can be used to:
- Purchase paid up additions
- Pay Premiums
- Earn interest with the company
- Cash Out
Additional Benefits of Whole Life Insurance
In addition to the guarantees and dividends, whole life insurance also offers three additional benefits associated with cash value life insurance.
Tax free life insurance policy loans
Life insurance loans using your cash value as collateral are income tax free. And policy loans do not have to be repaid. However, if your policy lapses and you have an outstanding policy loan, it could result in a taxable event.
Tax deferred cash value growth
Cash value life insurance grows tax deferred. If you practice proper policy management, you may never need to pay taxes on the cash value growth.
Paid up additions rider (PUAR) can also be used to increase the policy’s death benefit and cash value. However, when using a PUAR it is important to understand that over funding a policy can result in the policy being considered a modified endowment contract (MEC).
Tax free death benefit
The death benefit from your policy goes to your beneficiary income tax free. A death benefit may be taxed is if your estate exceeds the federal estate tax exemption limit or you live in a state with an inheritance tax. Therefore, if you have a large estate, careful asset protection planning is necessary.
Foresters Review Conclusion
Have questions or would you like to see an illustration for Foresters or any of the other dividend paying life insurance companies we represent? Give us a call today for a free life insurance consultation with an advanced markets professional.