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An interest-free loan is provided for any individual in the benefit member’s family who becomes terminally ill1.
The total loan can be up to 75% of the Net Face Amount of Foresters life insurance (it must be absolutely assigned to Foresters to the extent of its interest, up to a maximum of $250,000).
The loan will be repaid from the insurance proceeds payable upon the insured's death.
Note: As a result of a regulatory change and subject to eligibility requirements and limitations, eligible members whose Foresters life insurance contracts were issued in Oklahoma may now access Foresters Terminal Illness member benefit. This change applies to all new and existing members.
Eligibility Requirements & Limitations2
- Initial diagnosis must occur at least 24 months after the date of application for membership.
- Ineligible: Members who hold only a group insurance contract, individual term insurance that is not renewable and convertible, or term insurance within 5 years of maturity.
- The insured, or owner if other than the insured, must agree that:
- Any irrevocable beneficiary must agree in writing to the loan.
- This loan will be the first charge to the insurance certificate or contract and will take precedence over any death, disability, or other benefits.
- Foresters may increase the amount of the loan to cover administrative costs of maintaining the certificate (i.e. premiums, cost of insurance, expense charges).
- At the time of the loan and prior to the insured's death, the certificate needs to be absolutely assigned to Foresters. The application for the death benefit will be made to the external company. The amount of the loan will be subtracted from the proceeds that the beneficiary receives.
- The benefit payment is contingent upon medical proof satisfactory to Foresters.
1Terminally ill means there is a reasonable certainty of death within 12 months as determined by a legally qualified physician who can provide medical proof satisfactory to Foresters.
2Not available in the States of New York and Illinois as a Member Benefit.
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