Foresters Financial™ offers life insurance certificates with an Accelerated Death Benefit Rider1 (ABR), which may provide funds when it matters most


How an ABR works

If you are diagnosed with a chronic2, critical3, or terminal4 illness, you may decide to make a claim under the Accelerated Death Benefit Rider of your insurance certificate. When you make a claim, you would indicate the portion of the death benefit you wish to accelerate. Any money received under an ABR can be used as you see fit.

A chance to survive and thrive

Survival rates for many illnesses have been increasing steadily. Yet, between medical expenses and time off work, the costs associated with battling a serious health condition can be very high. If you find yourself in this situation, an ABR may offer you the resources necessary to focus on what matters most: getting better

What you need to know before you accelerate

It’s important to note that the amount you choose to accelerate will reduce the death benefit payable to your beneficiaries. Furthermore, you should be aware that if you make a claim related to a chronic or critical illness, any payment you receive may be substantially less than the amount you seek to accelerate. This discount is due to a number of factors, such as your age, the type of insurance you have, and how long your certificate has been active. The accelerated death benefit will terminate with the certificate or earlier.

Live Well

Here are some ways you may be able to reduce the chances that you’ll suffer from a chronic2, critical3, or terminal4 illness

Exercise more: regular exercise reduces the risk of chronic conditions such as heart disease6
Improve your diet: eating more fruits and vegetables may lower the risk of cancer7
Quit smoking: people who stop smoking are less likely to have a stroke8

ABR vs. Long-term Care Insurance

It’s important to note that an Accelerated Death Benefit Rider is not intended to replace Long-Term Care Insurance (LTCI). As the following table illustrates, there are key differences between an ABR and LTCI.

ABR LTCI
Claim Eligibility Provides the opportunity for the owner to accelerate a portion of the certificate’s death benefit and receive a payment if the insured is diagnosed with a chronic, critical or terminal illness. Generally, LTCI provides reimbursement payments for expenses incurred due to a prolonged or permanent illness or disability.
Proof of expenses required? Payments are not linked to, nor do they require proof of, medical expenses being incurred. LTCI benefits are typically based on evidence that the insured has incurred qualified long-term care expenses.
Implications of no claim A payment under ABR reduces the death benefit payable under the life insurance certificate and may affect other benefits and values. If no payment is made, benefits and values are still available as long as the certificate remains in effect. If LTCI benefits are not claimed they may be forfeited.

There may be other differences between Foresters ABR and a specific LTCI product that you may want to consider before making a decision to purchase.

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An ABR example

Let’s assume at 45 years old you purchase a 30-year term policy with a face value of $200,000. After 10 years of your certificate being active, you are diagnosed with a critical illness and make a claim under the ABR. You decide to accelerate the maximum amount allowed, which is 95% of your certificate’s face value.

Acceleration Amount: $190,000.00
Payment Percentage:
Gross Payment Amount:
Minus: Administrative Fee
Minus: Overdue Premium		 20.080%
$38,152.00
$300.00
$0
Accelerated Death Benefit Payment: $37,852.00

An Accelerated Death Benefit Rider can give you the peace of mind you crave.

Foresters Financial, Foresters, and Helping Is Who We Are are trade names and/or trademarks of The Independent Order of Foresters (a fraternal benefit society, 789 Don Mills Rd, Toronto, Canada M3C 1T9) and its subsidiaries. N527

Information on this page is for information purposes only; it does not form part of the insurance contract and is not intended to amend, alter or change any of the terms and conditions of the contract. Life insurance contracts are issued by The Independent Order of Foresters, a fraternal benefit society. Foresters products and riders may not be available or approved in all states and are subject to underwriting approval, limitations, contract terms and conditions, and state variations. Refer to the insurance contract for your state for these terms and conditions. Products underwritten by The Independent Order of Foresters. Foresters riders are filed under the form numbers listed below, where “XX” represents either “US” or your state’s postal abbreviation, as applicable: Foresters Advantage Plus II: WL-CA01-2019; Foresters Strong Foundation: TERM-ALB-US01-2016; Foresters Your Term: TERM-ANB-US01-2016; Foresters SMART Universal Life: UL-SMART-CA01-2018; Accelerated Death Benefit Rider (for Chronic, Critical and Terminal Illness): TRAD-ABRCHCRTI-CA01-2016 or UL-ABRCHCRTI-CA01-2016; Accelerated Death Benefit Rider (for Critical and Terminal Illness): TRAD-ABRCRTI-CA01-2016 or UL-ABRCRTI-CA01-2016; Accelerated Death Benefit Rider (for Terminal Illness): TRAD-ABRTI-CA01-2016 or UL-ABRTI-CA01-2016.

1 The payment of the ABR benefit, due to diagnosis of an eligible illness, may be substantially less than the acceleration amount which may be subject to a fee, an actuarial discount amount and other applicable deductions. Payment of an ABR benefit will decrease the certificate’s face amount and death benefit. Accelerated Death Benefit Rider provides an option to accelerate a portion of the eligible death benefit and receive a payment. This is a life insurance benefit that also gives you the option to accelerate some or all of the death benefit in the event that you meet the criteria for a qualifying event described in the certificate. This certificate does not provide long-term care insurance subject to California long-term care insurance law. This certificate is not a California Partnership for Long-Term Care program policy. This certificate is not a Medicare supplement certificate.

Receipt of the accelerated death benefits may affect eligibility for public assistance programs. Payment of accelerated death benefits under these riders are intended to receive favorable tax treatment under section 101(g) of the Internal Revenue Code (26 U.S.C. Sec. 101(g)). We recommend that you contact your tax advisor when making decisions about electing to receive benefits from any accelerated benefit product, as the owner may incur a tax obligation.

2 Chronic illness is defined as being unable to perform, without substantial assistance from another person, at least two of the six activities of daily living for a period of at least 90 days, due to a loss of functional capacity, or as requiring substantial supervision by another person to protect the insured from threats to health and safety due to the insured’s severe cognitive impairment.

3 Critical illness is defined as as having a medical condition that would, in the absence of treatment, result in death within 12 months of the date of diagnosis.

4 A terminal illness is a non-correctable illness or physical condition which is reasonably expected to result in death within 12 months of diagnosis.

5 https://www.cancer.org/latest-news/facts-and-figures-2018-rate-of-deaths-from-cancer-continues-decline.html

6 https://www.cdc.gov/chronicdisease/resources/infographic/physical-activity.htm

7 https://www.mayoclinic.org/healthy-lifestyle/adult-health/in-depth/cancer-prevention/art-20044816

8 https://www.cdc.gov/tobacco/data_statistics/fact_sheets/cessation/quitting/index.htm

Only for use in CA.

418615 US (04/20)