Skip to content Skip to footer site map

woman and man giving children piggy back rides in grassy field

What is universal life insurance?

Universal life insurance can provide you with the flexibility to make changes as your life evolves. These products combine lifetime insurance protection with the potential for tax-deferred1 cash value accumulation. You can even access the cash value if you need it.  

Universal life has two parts: a life insurance part and a cash accumulation part. The premium you pay is used to cover the monthly costs for the insurance. If the premium paid is higher than the costs for the insurance, the excess is accumulated as cash value and earns monthly interest and grows over time, typically on a tax-deferred basis1, until withdrawn as cash or used to help pay the costs of the insurance. 

Foresters Financial and Foresters are trade names and trademarks of The Independent Order of Foresters (a fraternal benefit society) and its subsidiaries.

1Foresters Financial, its employees and life insurance representatives, do not provide, on Foresters behalf, legal, tax or estate advice. The information given here is merely a summary of our understanding of current laws and regulations and is not specific to your situation. Consult a tax or legal advisor regarding estate planning and the taxation of life insurance.

2Withdrawals or loans will reduce the death benefit and cash values and may affect how long the insurance contract is in effect. For loans, interest is charged daily on the loan at 5% annually, 3% after the 7th certificate year. Surrender charges may apply to withdrawals and surrendering does result in a loss of insurance coverage. Income and growth on accumulated cash values are generally taxable only upon withdrawal: IRC section 72. Ask your tax advisor for details on your specific situation.

3Assumes no withdrawals.

4Proceeds from an insurance certificate paid due to the death of the insured are generally excludable from the beneficiaries’ gross income for income tax purposes. Consult your tax advisor on your specific situation

5Foresters products and their riders may not be available or approved in all states and are subject to eligibility requirements, underwriting approval, limitations and state variations. If you have questions regarding Foresters products and their riders, please contact your insurance agent or contact Foresters Financial to be connected with an agent in your area.   Foresters SMART Universal Life  is issued by The Independent Order of Foresters. Foresters SMART Universal Life and its riders are filed under the form numbers listed below, where “XX” represents either “US” or your state’s postal abbreviation, as applicable. Foresters SMART Universal Life: ICC09-UL-SMART-US01 or UL-SMART-XX01-2009 or UL-SMART-XX01-2013 Waiver of Monthly Deductions Rider: ICC09-UL-WMD-US01 or UL-WMD-XX01-2009 Accidental Death Rider: UL-ADR-XX01-2008 Children’s Term Rider: UL-CTR-XX01-2008 Disability Income Rider (Accident Only): UL-DIR-XX01-2008 Family Health Benefit Rider: UL-FHB-XX01-2008 Common Carrier Accidental Death Rider: UL-CCADR-XX01-2008 Guaranteed Purchase Option Rider: UL-GPO-XX01-2008
Accelerated Death Benefit Rider (for Chronic, Critical and Terminal Illness): ICC14-UL-ABRCHCRTI-US01 or UL-ABRCHCRTI-XX01-2014 or UL-ABRCHCRTI-NY01-2015;
Accelerated Death Benefit Rider (for Critical and Terminal Illness): ICC14-UL-ABRCRTI-US01 or UL-ABRCRTI-XX01-2014 or UL-ABRCRTI-NY01-2015;
Accelerated Death Benefit Rider (for Terminal Illness): ICC14-UL-ABRTI-US01 or UL-ABRTI-XX01-2014 or UL-ABRTINY01-2015

6This rider is not available for certificates issued with a base face amount of less than $20,000. On certificates where the insured’s issue age is higher than 75 or issued as sub-standard, Terminal illness, where available, will be the only eligible illness issued. State variations and product limitations may apply. ABR is not available in CA or CT.

7The payment, due to diagnosis of an eligible illness, may be less than the acceleration amount which may be subject to a fee, an actuarial discount amount and other applicable deductions. Payment will decrease certificate values and benefits. Receipt of the accelerated death benefits may affect eligibility for public assistance programs. Receipt of the accelerated death benefits may be taxable.

This product is a life insurance certificate that accelerates the death benefit on account of chronic illness and is not a health insurance certificate providing long term care insurance subject to the minimum requirements of New York Law, does not qualify for the New York State Long Term Care Partnership Program and is not a Medicare supplement certificate.

412735 US 12/16

Ready to take the next step? Find an advisor/agent