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What is universal life insurance?

Universal life insurance combines permanent protection with an investment component. It’s a flexible product that can allow you to make changes to suit your evolving life.

Here’s how it works:

  • The premiums you pay go toward the certificate’s account value
  • A portion of this account is used to cover the cost of insurance and any other monthly charges
  • The other portion represents what’s known as your cash value. This can grow based on the interest accrued to the certificate’s account value. Typically, cash value accumulates on a tax-deferred basis, until withdrawn as cash or used to help pay the costs of the insurance.1

Foresters 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 following form numbers listed below, where “XX” represents either “US” or your state’s postal abbreviation, as applicable.

Foresters SMART Universal Life: ICC18-UL-SMART-US01 or UL-SMART-XX01-2018 or UL-SMART-FL02-2018; Waiver of Monthly Deductions Rider: ICC18-UL-WMDUS01 or UL-WMD-XX01-2018; Accidental Death Rider: ICC18-UL-ADR-US01 or UL-ADR-XX01-2018; Children’s Term Rider: ICC18-UL-CTR-US01 or UL-CTRXX01-2018; Family Health Benefit Rider: UL-FHB-XX01-2008; Common Carrier Accidental Death Rider: ICC18-UL CCADR-US01 or UL-CCADR-XX01-2018; Guaranteed Purchase Option Rider: ICC18-UL-GPO-US01 or UL-GPO-XX01-2018; Accelerated Death Benefit Rider (for Chronic, Critical and Terminal Illness): ICC14- UL-ABRCHCRTI-US01 or UL-ABRCHCRTI-XX01-2014; Accelerated Death Benefit Rider (for Critical and Terminal Illness): ICC14-UL-ABRCRTI-US01 or UL-ABRCRTIXX01-2014; Accelerated Death Benefit Rider (for Terminal Illness): ICC14-UL-ABRTIUS01 or UL-ABRTI-XX01-2014

1 Foresters 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.

2 Proceeds 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

3 Withdrawals and/or loans will reduce the death benefit and cash values and may affect how long the insurance contract is in effect. Surrender charges may apply to withdrawals. Loan interest is charged daily on the loan at 4% annually, 2% after the 7th certificate year. Income and growth on accumulated cash values are generally taxable only upon withdrawal: IRC section 72. Loans may be considered a reportable tax event. Ask your tax advisor for details on your specific situation.

4 Assumes no withdrawals.

The certificate will not lapse if, on each monthly anniversary during the 10-year period, the sum of the premiums paid is at least equal to the sum of the minimum premium on the issue date plus the minimum premium on each monthly anniversary from the issue date, including the current monthly anniversary, plus the total of all withdrawals as of the current monthly anniversary. Changes to the face amount, insurance class, rating class, rider benefit amount(s) or the addition or deletion of a rider will change the minimum premium.

6 Foresters will pay the eligible designated charitable organization in the name of the insured. The designated charitable organization must be an accredited 501(c)(3) organization under the Internal Revenue Code and eligible to receive charitable contributions as defined in section 170(c) of that code.

7The 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.

(If applicable)
This is a rider that is attached to a life insurance policy 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.

(If applicable)
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 certificate with a rider 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 rider. This certificate does not provide long-term care insurance subject to California long-term care insurance law. 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)).

Receipt of the accelerated death benefits may affect eligibility for public assistance programs. Receipt of the accelerated death benefits may be taxable.


412579 US (04/20)

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