SMART Universal Life Insurance

For your changing life

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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 Typically, cash value accumulates on a tax-deferred basis, until withdrawn as cash or used to help pay the costs of the insurance.¹

Benefits of universal life insurance

Can provide lifetime life insurance protection
Death benefit is generally free of income taxes and probate delays¹,²
Options (known as “riders”) that offer protection for other risks, such as total disability or accidental death
Premium flexibility within maximum and minimum limits
Tax-deferred growth on cash value (some restrictions may apply)
Withdraw funds, or surrender for cash³
Use the insurance as collateral for a loan⁴

What is SMART Universal Life Insurance?

SMART UL from Foresters Financial is a universal life insurance product designed to help you reach your goals and get the most out of your changing life. It’s an all-in-one life insurance solution giving you flexibility, the opportunity to save for the future, and affordable protection.

Features and Insurance Benefits

Flexibility and Cash Value

During your working years, your life can change dramatically. You might get married, have a family, or even move across the country for a new job. Your needs will evolve in the face of such changes, which is why SMART comes with built-in flexibility. With our 10-Year No Lapse Guarantee, you can maintain your coverage as long as you pay the minimum premium each month.⁵

SMART also allows you to build potential cash value beyond the death benefit. The cash accumulation portion of SMART grows at a minimum interest rate of 2% each year, and can be accessed if you need funds. You can tap into your cash value to help with buying a house, paying down a mortgage, or supplementing your income in retirement.

Features included with basic coverage

As part of your basic coverage, SMART Universal Life has up to four features that can help you, your family and the world in times of need:

Charity Benefit provision⁶: When a claim is paid to your beneficiaries, Foresters will donate (up to $100,000) an additional 1% of the face amount to an eligible charity of your choosing. This benefit is automatically included in the contract with no additional monthly deductions.
Family Health Benefit Rider: Pays a benefit you can use to help pay certain family health expenses that may occur as a result of some natural disasters such as hurricanes, tornadoes and earthquakes.
Common Carrier Accidental Death Rider: Provides an additional death benefit if you die of accidental injuries that occur while riding as a fare-paying passenger on a common carrier, such as a bus or a train.
Accelerated Death Benefit Rider: Provides an option to accelerate a portion of the eligible death benefit and receive a payment in the event you are diagnosed with a covered Chronic, Critical, or Terminal Illness.⁷ This rider, which is subject to state variations and eligibility requirements, may allow you to afford the treatment you require.

Comparing Accelerated Death Benefits with Long-term Care Insurance

Accelerated death benefit riders (“ABR”) and long-term care insurance (“LTCI”) provide different types of benefits. Foresters ABR is a rider attached to a life insurance certificate. It provides the opportunity for the owner to accelerate a portion of the certificate’s death benefit, if the insured is diagnosed with a chronic, critical or terminal illness, and receive a payment that can be used for any purpose. Payments are not linked to, nor do they require proof of, medical expenses being incurred. A payment under ABR reduces the death benefit payable under the life insurance certificate and may affect other benefits and values, but if no payment is made the certificate’s benefits and values are still available, as long as the certificate remains in effect. The accelerated death benefit will terminate with the certificate or earlier.

Generally, LTCI provides reimbursement payments for expenses incurred, due to a prolonged or permanent illness or disability, and provides no death benefit or cash value. LTCI benefits are typically based on evidence that the insured has incurred qualified long-term care expenses and the benefit, which may be subject to a maximum, is equal to the amount of expenses incurred. 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.

Build custom coverage

To enhance your benefits with SMART Universal Life, you may choose from a variety of optional riders:

Children’s Term Rider: Covers new additions to your family and can be converted to permanent life insurance in the future, regardless of the child’s health.
Accidental Death Rider: Provides an affordable additional benefit to help your family financially in case of death due to accidental bodily injury.
Guaranteed Purchase Option Rider (GPO): Offers an opportunity to increase your face amount by up to $50,000 on each option date, without additional evidence of insurability.
Waiver of Monthly Deductions Rider: Waives your monthly deduction if you are totally disabled and unable to work for at least 6 months.

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.

⁵The 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)

SMART Universal Life Insurance

What is universal life insurance?

Benefits of universal life insurance

What is SMART Universal Life Insurance?

Features and Insurance Benefits

Features included with basic coverage

Comparing Accelerated Death Benefits with Long-term Care Insurance

Build custom coverage

Products & solutions

Tools & guides

Customer care

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