Foresters Financial offers excellent life insurance products. In the following Foresters review, we will cover the strengths of the company, its ratings, its history and its various products and features available with the goal of helping you decide if Foresters is 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 whole life insurance companies thanks to the company’s flagship product, Advantage Plus Whole Life Insurance.
So, let’s take a look at the company itself to get a better idea of what it is and what it offers.
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 August 2020, The Independent Order of Foresters (Foresters Financial) financial strength, as measured by A.M. Best Company, is rated “A”, which signifies the company’s overall financial strength and claims-paying ability.
According to Foresters Financial, The A.M. Best ratings assigned on August 5, 2020 reflect overall strength and claims-paying ability of The Independent Order of Foresters. An “A” (Excellent) rating is assigned to companies that have a strong ability to meet their ongoing obligations to policyholders and have, on balance, excellent balance sheet strength, operating performance and business profile when compared to the standards established by A.M. Best Company. A.M.Source
If you are looking for a solid financial foundation, look no further than Foresters Financial. The company has done an excellent job of maintaining a strong financial position.
Foresters Financial offers products and services in four different areas, life insurance, mutual funds, retirement and savings plans, and annuities. The primary focus of this article ill be targeting the company’s life insurance products which include:
- Term Life
- Whole Life
- Universal Life
- Variable Universal Life
- Variable Life
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 comparing the benefits between term life insurance vs whole life insurance.
Benefits of Whole Life Insurance
Benefits of Term Life Insurance
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 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.
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 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.
Foresters offers 4 different whole life insurance plans.
Plan Right Whole Life Insurance
Final Expense Whole life Insurance protection to age 121.
- 3 Plans: Level, Graded and Modified
- Available for ages 50-85
- Face Amount: $2,000 – $35,000 based on age
Your Legacy Whole Life Insurance
Single premium whole life insurance
Interest Sensitive Whole Life Insurance
Ordinary life insurance
Forester’s Advantage Plus Whole Life Insurance is an excellent policy offering many perks. The primary benefits provided include:
- Custom built dividend paying whole life insurance
- Available as limited pay life insurance
- Available in 20-Pay Whole Life and Paid-up at 100
- No Medical Exam Whole Life Insurance up to $400,000
- Guaranteed Insurability Rider available on issue ages 0-37
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
Foresters Whole Life Insurance Dividend History
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 complimentary life insurance consultation with an advanced markets professional.