Foresters Financial occupies a unique lane in the whole life insurance world. They’re not the biggest. They don’t have the highest dividend rate. But they offer something almost no other participating whole life carrier can match: no-medical-exam whole life insurance up to $400,000 — with dividends, cash value, and a paid-up additions rider.
If you’ve been putting off whole life because you don’t want the exam, have a health concern that complicates underwriting, or simply want to get started in weeks instead of months, Foresters is likely the answer. As a fraternal benefit society with 151 years of history and 25 consecutive years of “A” (Excellent) ratings from AM Best, the company backs that convenience with genuine financial substance.
That said, Foresters’ no-exam advantage doesn’t automatically make it the best fit for everyone. Penn Mutual now offers similar no-exam options, and for clients prioritizing maximum long-term cash value growth, we’d want to compare illustrations head to head. Here’s everything you need to know to decide.
📋 TL;DR — Foresters Financial at a Glance
- Founded: 1874 (151 years) — oldest non-denominational fraternal benefit society
- AM Best Rating: A (Excellent) — 25 consecutive years
- Morningstar DBRS: A (Financial Strength Rating)
- Current Dividend Rate: 6.00% (effective May 2025)
- Total Assets: $12.8 billion+ | Surplus: $1.5 billion+
- Recognition Type: Non-direct recognition
- Flagship Product: Advantage Plus II Whole Life — no exam up to $400,000
- Structure: Fraternal benefit society (not-for-profit, member-owned)
- Best For: No-exam participating whole life, quick implementation, health concerns, privacy
💰 Bottom Line: Foresters’ killer feature is the no-exam participating whole life up to $400,000 — something very few carriers can match. Combined with non-direct recognition and a 6.00% dividend rate, it’s a strong option for anyone who wants to start building cash value quickly without medical underwriting delays. For maximum long-term cash value growth, compare to Penn Mutual.
Table of Contents
Company Overview & Financial Strength
Foresters Financial was founded in 1874 as The Independent Order of Foresters — a fraternal benefit society, not a traditional insurance company. That distinction matters: as a not-for-profit fraternal organization, Foresters reinvests profits into member benefits and community initiatives rather than distributing them to shareholders. When you buy a Foresters policy, you become a member, not just a customer.
The company has grown to serve over 2.5 million members across North America and the United Kingdom, with $12.8 billion in total assets and a surplus exceeding $1.5 billion. Foresters is led by a board of directors elected by its members, which keeps the organization aligned with policyholder interests — similar to how mutual insurance companies operate, but with even stronger member governance.
Financial Strength Ratings (2026)
| AM Best | A (Excellent) — 25 consecutive years |
| Morningstar DBRS | A (Financial Strength Rating) |
| Total Assets | $12.8 billion+ |
| Surplus | $1.5 billion+ |
Ratings are for The Independent Order of Foresters (IOF). AM Best rating affirmed October 10, 2025 with stable outlook. DBRS Morningstar confirmed July 2025.
Worth noting: Foresters’ AM Best rating is A (Excellent) rather than A+ or A++ held by carriers like Penn Mutual (A+) or MassMutual (A++). That’s a perfectly strong rating — it means excellent financial strength and claims-paying ability — but ultra-conservative clients may want to weigh this against the no-exam convenience. For our full breakdown of life insurance company ratings, see our dedicated guide.
Looking for a Simpler Alternative?
If your priority is maximizing a lump-sum premium with lower ongoing costs — and you don’t need an extensive rider package — Foresters Financial is worth a look. Their streamlined whole life products are designed for clients who want efficient cash value accumulation without the complexity of a full-featured policy.
The No-Exam Advantage — Why Foresters Stands Out
This is Foresters’ headline differentiator: the Advantage Plus II whole life policy offers up to $400,000 in participating, dividend-paying, no-medical-exam whole life insurance.
That’s significant because most carriers offering no-exam coverage are selling simplified issue or guaranteed issue products — policies with limited death benefits, no dividends, and no cash value accumulation worth mentioning. Foresters gives you a fully participating whole life policy with a paid-up additions rider, non-direct recognition, and the ability to build meaningful cash value — all without needles, lab work, or a medical records review.
Important context: Penn Mutual now also offers accelerated underwriting on their Accumulation Whole Life product — no exam required for qualifying applicants. If you’re healthy and qualify, Penn Mutual’s cash value growth will likely outperform Foresters over time. But if you have health concerns, value privacy, or want the fastest possible implementation, Foresters’ no-exam path remains the industry gold standard for participating whole life.
Products & Riders Overview
| Product | Details |
|---|---|
| Advantage Plus II Whole Life ⭐ | Flagship participating whole life. 10-Pay, 20-Pay, or Paid-Up at 100. No exam up to $400K. Ages 0-85. Paid-up additions rider available. Non-direct recognition. Up to $10M with exam. |
| Live Well Plus (New 2025) | New participating whole life product launched July 2025. Designed to complement the Advantage Plus II lineup. |
| BrightFuture Children’s Whole Life | Ages 0-17, $5K-$75K coverage. Builds cash value. Built-in guaranteed insurability rider lets child increase coverage later with no exam. Excellent for children’s life insurance. |
| PlanRight (Final Expense) | Ages 50-85, $2K-$35K. Three tiers: Level, Graded, Modified. No exam. See our best final expense companies guide. |
| Your Term / Strong Foundation | Convertible term: 10, 15, 20, 25, 30-year options. $100K-$5M. Convert to permanent with no underwriting. Strong Foundation specifically designed for diabetics. |
| SMART Universal Life | Flexible permanent coverage. 10-year no-lapse guarantee. 3% guaranteed interest rate on cash value. Ages 0-85, $10K-$10M. |
Key Riders (Included at No Additional Cost)
Every Foresters life insurance policy comes with riders that other carriers charge extra for:
- Accelerated Death Benefit Rider: Access a portion of death benefit upon diagnosis of critical, chronic, or terminal illness — similar to a chronic illness rider
- Common Carrier Accidental Death: Additional death benefit if death occurs as a fare-paying passenger
- Family Health Benefit: Pays out if family incurs expenses from natural disasters
- Charity Benefit Provision: Foresters donates an additional 1% of your death benefit (up to $100,000) to a registered 501(c)(3) charity of your choosing when the claim is paid
Optional Riders
- Paid-Up Additions Rider — Accelerate cash value growth (watch for MEC limits)
- Guaranteed Insurability Rider — Purchase additional coverage at specified dates with no underwriting (ages 0-37)
- Waiver of Premium — Premiums waived if disabled
- Children’s Term Rider — Coverage for each child, convertible to permanent
Non-Direct Recognition & Loan Strategy
Foresters practices non-direct recognition on its Advantage Plus II whole life policies. This means your entire cash value continues earning the same dividend — even when a portion is being used as collateral for a policy loan.
For anyone using whole life as a personal banking system, non-direct recognition is significant: your money works in two places simultaneously. You borrow against the cash value for real estate, business capital, or other investments, while the full cash value continues compounding with dividends. The result is potential positive arbitrage — earning more on the cash value than you’re paying in loan interest.
Foresters charges a variable loan rate rather than a fixed rate. Interest accrues daily on outstanding loan balances.
Fraternal Member Benefits — What Sets Foresters Apart
Because Foresters is a fraternal benefit society rather than a traditional insurer, every policyholder becomes a member with access to benefits that go beyond insurance. These are non-contractual (meaning they can change), but Foresters has maintained them consistently:
- Competitive Scholarships: 400+ scholarships across the US and Canada for members and their families
- Foresters Care™ Community Grants: Funding for local community improvement projects organized by members
- Volunteer Opportunities: Organized community service activities with support and funding
- Wellness Programs: Health and wellness initiatives for members
- Orphan Benefits: Support for children who lose their parents
These benefits won’t make or break your insurance decision, but they’re a genuine differentiator — especially the scholarships for families with children heading to college.
Foresters vs the Competition
| Feature | Foresters Financial | Penn Mutual | Lafayette Life |
|---|---|---|---|
| Dividend Rate | 6.00% | 6.00% | 5.90% |
| AM Best Rating | A (Excellent) | A+ (Superior) | A+ (Superior) |
| No-Exam Whole Life | Up to $400K ✓ | Accelerated UW available | Standard UW required |
| Recognition Type | Non-direct | Direct (preferred loan yr 11+) | Non-direct |
| Long-Term Cash Value Growth | Good | Superior ✓ | Excellent |
| Early Cash Value (Yrs 1-6) | Good | Very Good | Excellent ✓ |
| Speed to Issue | Fastest ✓ | Fast (accelerated UW) | Standard |
| Best For | No-exam speed, health concerns, privacy, fraternal benefits | Maximum long-term cash value, active loan users | Maximum early cash value, lump-sum funding |
For carrier-by-carrier breakdowns, see our Best Infinite Banking Companies, Top 10 Best Dividend Paying Whole Life Companies, and Best Whole Life Insurance Companies guides.
Who Foresters Is Best For (And Who Should Compare Alternatives)
✅ Foresters is a strong fit if you:
- Want no-exam whole life with real dividends and cash value — not a simplified issue product
- Have health concerns (including well-managed diabetes) that complicate traditional underwriting
- Want to start infinite banking in weeks instead of months
- Value non-direct recognition for active policy loan strategies
- Want children’s whole life with built-in guaranteed insurability (BrightFuture)
- Appreciate fraternal member benefits (scholarships, community grants)
- Need fast implementation for business insurance or time-sensitive planning
⚠️ Compare alternatives if you:
- Are healthy and qualify for standard or accelerated underwriting — Penn Mutual and MassMutual will likely produce higher long-term cash value
- Need maximum early cash value in years 1-6 — Lafayette Life typically wins this category
- Prioritize the absolute highest financial strength ratings (A++ vs A)
- Want online quoting and application — Foresters requires working with an agent
- Need coverage in New York — Foresters is not available in NY
- Are shopping for competitive universal life — Foresters’ UL is adequate but not their strongest product
Frequently Asked Questions
What is Foresters Financial’s current dividend rate?
As of May 1, 2025, Foresters’ dividend interest rate is 6.00%, up from 5.90% the previous year. Foresters announces dividend rates mid-year rather than year-end like most carriers. Dividends are not guaranteed, but the company has maintained a consistent history of payments and the 6% range for multiple years. For a full industry comparison, see our whole life dividend rate history.
Can I really get no-exam whole life insurance from Foresters?
Yes. Foresters’ Advantage Plus II offers up to $400,000 in participating whole life coverage without a medical exam. Insurability is determined by your application answers and automated database searches. No blood work, no urine sample, no physical exam. This is genuine no-exam whole life with dividends and paid-up additions — not a simplified issue product.
Is Foresters good for infinite banking?
Yes — Foresters is particularly well-suited for clients who want to start infinite banking quickly. The no-exam underwriting eliminates the biggest implementation barrier, and the non-direct recognition means your full cash value continues earning dividends even when you have outstanding loans. The 20-Pay Advantage Plus II with a paid-up additions rider is the most common design we use for IBC clients at Foresters.
Foresters vs Penn Mutual — which should I choose?
If you’re healthy and qualify for Penn Mutual’s accelerated underwriting, Penn Mutual will typically produce higher long-term cash value due to its policy design and PUA flexibility. If you have health concerns, want to avoid any medical underwriting, or need the fastest possible implementation, Foresters is the better path. Both offer competitive dividend rates at 6.00%. We recommend running illustrations from both carriers for your specific situation.
What is a fraternal benefit society?
A fraternal benefit society is a not-for-profit organization that provides insurance and financial products to its members while investing in community programs. Unlike stock companies (which serve shareholders) or even mutual companies (which serve policyholders), fraternal societies have an explicit social mission. Foresters members get access to scholarships, community grants, volunteer opportunities, and other benefits beyond their insurance coverage.
Does Foresters offer coverage for diabetics?
Yes — this is another area where Foresters stands out. Their Strong Foundation term product is specifically designed for applicants with well-managed Type 1 or Type 2 diabetes, offering up to $500,000 in coverage without a medical exam. The Advantage Plus II whole life can also cover diabetic applicants on a substandard basis through their non-medical underwriting path.
What states is Foresters available in?
Foresters is available in all states except New York. Products and features may vary by state and are subject to underwriting approval.
Does Foresters practice direct or non-direct recognition?
Foresters practices non-direct recognition on its Advantage Plus II whole life policies. This means the company continues paying the same dividend on your entire cash value regardless of outstanding policy loans. For clients who plan to actively use policy loans for real estate, business investments, or retirement income, non-direct recognition provides a meaningful compounding advantage.
Foresters Financial Review — Final Verdict
Foresters Financial carved out a genuine niche in the whole life market: participating, dividend-paying, no-exam whole life insurance with real cash value growth potential. That’s a combination nobody else matches at the $400,000 level. The fraternal benefit structure, non-direct recognition, and 6.00% dividend rate add further substance to the offering.
Where it fits best: clients who need fast implementation, have health concerns, value privacy, or want to complement a primary policy from Penn Mutual or MassMutual with additional coverage that doesn’t require medical underwriting. Where you should compare alternatives: if you’re healthy, have time for underwriting, and want to maximize long-term cash value growth.
Either way, it’s worth getting a Foresters illustration alongside Penn Mutual and Lafayette Life to see how the numbers play out for your specific situation.
Get Your Personalized Foresters Illustration
See what a properly designed Foresters Advantage Plus II looks like alongside Penn Mutual and Lafayette Life for your age, health, and premium. We’ll show you which carrier produces the best numbers for your specific timeline and goals.
- ✓ No-exam vs traditional underwriting comparison — see the actual cost difference
- ✓ Head-to-head cash value projections: Foresters vs Penn Mutual vs Lafayette Life
- ✓ Policy design optimization for maximum cash value or maximum death benefit
- ✓ Honest guidance from practitioners who place policies across all three carriers
Book Your Free Strategy Session
No obligation. No sales pressure. Just expert guidance to help you make the best decision for your financial future.
29 comments
Tom Skinner
I would like to know more information on whole life insurance for my child to set up for some generational wealth thank you.
SJG
Hello Tom, thanks for connecting. It looks like you connected with Denise who is one of our top whole life experts so you’re in good hands.
Best, Steve Gibbs for I&E
Peter H
What is infinite banking for n a nut shell . No bull shit. Please
Insurance&Estates
Hi Peter, thanks for connecting. We’ve done literally dozens of “no b.s.” webinars to answer your question in detail. That said, the short summary is that infinite banking is a properly structured high cash value permanent life insurance policy that can serve as a safe bucket cash account to leverage for numerous purposes. The problem with short statement of description is that this concept may challenge some traditionally held financial sacred ideas. Check out our resources tab and infinite banking webinars to get more detail.
Best, Steve Gibbs for I&E
Matoya Hampton
I have a smart UL am I able to switch to whole life? Which is better for dividends?
Insurance&Estates
Hello Matoya, to have your current policy reviwed and do an educated comparison, go ahead and schedule a call with one of our IBC experts. A good start is to request a call with Barry or Denise by emailing barry@insuranceandestates.com.
Best, Steve Gibbs for I&E
Victor
I would like information on starting infinite banking and receiving dividends through a whole life cash growth insurance that has a solid track record with flexible
Insurance&Estates
Hello Victor, I forwarded your request to Barry Brooksby, our IBC expert, to connect with you and you can also e-mail him at barry@insuranceandestates.com.
Best, Steve Gibbs for I&E
Albert Cosio
I’m looking for a mutually owned company with a whole life insurance with high cash value and pays dividends. I would also like to be walked through the infinite banking process. Thank you
Jerry Walker Jr
I need to have a agent break down my cash options at this time. Im a long term policy hold who do to pandemic reasons need to evaluate my potions at this time
Insurance&Estates
Hello Jerry, to get the best evaluation, go ahead and reach out to Barry Brooksby directly at barry@insuranceandestates.com.
Best, Steve Gibbs for I&E
Linda
looking to start infinite banking receiving dividends through a whole life cash growth insurance that has a solid track record with flexible premium design and paid up addition to maximize cash value accumulation regardless of a policy loan
Insurance&Estates
Hi Linda,
Our IBC Practitioner Expert, Barry Brooksby, can help you. I suggest that you connect with him directly at barry@insuranceandestates.com to schedule a call.
Best, Steve Gibbs, for I&E
Erick
I would like to know what are the cost differences between going through medical underwriting and not with a whole life insurance policy. Please email me ASAP.
Insurance&Estates
Hello Erick and thanks for reading, I suggest you pursue this question directly with a Pro Client Guide by e-mailing barry@insuranceandestates.com.
Best, I&E
Jerry Day
I currently have a 100K Term policy with Foresters and would like to convert it to Whole life policy for IBC. I have contacted a foresters agent but he does not seem to understand high cash value policies. could you help me with this?
Jerry Day -genopv1@gmail.com 559-756-1816
Insurance&Estates
Hello Jerry and thanks for commenting. Barry Brooksby or Jason Herring will be reaching out to you if they haven’t already.
Best,
I&E
Tirus T Tholen
I need more information on the
Cash-value life insurance
Insurance&Estates
Hello and thank commenting. Your inquiry has been forwarded to our Pro Client Guide team who will reach out to you ASAP.
Best, I&E
Tim Brecheen
Would like information on whole life Insurance, to use as infinite banking concept
Insurance&Estates
Hello Tim, your request has been forwarded to Jason Herring for follow up concerning IBC. Thank you and best.
Steve Gibbs for I&E
Thomas Swift
65, retired, currently no insurance. All funeral plans already in place.
Chance
Hello and thanks for making available such insightful articles on various life insurance policies, especially participating whole life. I am very interested in such a policy but a close friend (who is a financial advisor) has warned me that these policies may be scams as they pertain to personal longterm wealth growth and personal banking. My hunch is otherwise, so I’d love to find an honest agent who can help structure a policy for my needs. I’m 30, engaged, a college grad, very healthy, a small organic farmer, and I’m eager to save responsibly and invest in my business.
Jerome
IS Forester’s a non-direct recognition company?
Insurance&Estates
Hi Jerome, thanks for your inquiry and interest and yes it is.
Let us know if you’d like some more information and will connect you with a Pro Client Guide.
Best,
I&E
Windell Compton
Would like to more about your whole life insurance.
Insurance&Estates
Hi Windell, thanks for inquiring about Whole Life Insurance. One of our whole life pro client guides, Jason Herring, has e-mailed you to assist in your search. Please send him some feedback to continue the conversation when you can.
Best, Steve
Rick L.R.
…married non- Smoker. Sold insurance for 15 years. Relatively good health few problems. no cancer, diabetes or high cholesterol, or heart problems. Exercise by walking daily
Insurance&Estates
Rick,
Thank you for the contact information. We will reach out to you shortly.
Sincerely,
I&E