Lifetime of protection — ISWL is a permanent life insurance policy. If the premiums are paid on time, coverage will last a lifetime (up to age 121). Your death benefit will never decrease as long as there are no outstanding loans.
Fixed premium — Your premiums will stay at the same level as long as the policy is in force, regardless of economic conditions or the state of your health. Premium payments stop at age 100.
Accumulation Value — The fund that builds in an ISWL policy is called the "Accumulation Value." The Accumulation Value grows at a guaranteed1 minimum interest rate plus the potential of a company-declared excess interest rate, all income tax deferred. As a permanent life insurance policy, ISWL builds Accumulation Value on an income tax-deferred basis. Over many years, your Accumulation Value may be a significant amount of money you can use to:
- Help pay for a child's education
- Help when buying a new home
- Provide additional funds at retirement
Access to your Accumulation Value — Subject to policy provisions, policy loans provide access to your Accumulation Value for any reason at any time.
Interest Rate Crediting — An ISWL policy provides two ways for the Accumulation Value to grow:
- The security of a guaranteed2 minimum interest rate. A guaranteed annual interest rate is credited to the Accumulation Value of your ISWL policy.
- The potential for additional Accumulation Value growth from declared excess interest rates. Foresters Life Insurance and Annuity Company may from time to time declare an excess interest rate that will automatically be included in the calculation of the Accumulation Value.
Faster growing Accumulation Value — The deduction of current cost of insurance charges, which are generally lower than the guaranteed maximum rates, allows for faster and higher Accumulation Value growth.
Option to suspend premiums — There may come a time when it may be convenient for you to not have to pay your ISWL premium. If that circumstance occurs and your Accumulation Value meets the policy's requirements, you may elect to suspend premium payments for as long as your policy remains qualified. Choosing whether or not to suspend is an important decision because suspension of premium payments will slow the growth of your Accumulation Value.
Income Tax-Free Death Benefit — With ISWL, death benefits paid to beneficiaries are not subject to federal income tax. In addition, the death benefit is generally not subject to the costs and delays of probate if paid to a named beneficiary or beneficiaries.
Income Tax-Deferred Growth — With ISWL, the Accumulation Value accumulates on a tax-deferred basis inside the policy. Tax deferral allows the Accumulation Value to grow more quickly and to higher levels than if they were currently taxed.