Last Updated on September 14, 2020 by lifepolicyshopper
Top 5 Facts about Foresters Life Insurance
If you are in the market for life insurance or other financial products, wouldn’t it be important to know a little about the company you are considering? If so, we want to provide the information on each company that you may be considering, especially if you are considering final expense insurance. This is especially true if you are currently uninsured or you feel you don’t have sufficient insurance to cover the final expenses that will need to be paid when you pass away. Here, we’ll discuss the top 5 facts about Foresters Life Insurance, one of the leading insurance companies when it comes to final expense insurance.
1. Foresters Financial is owned by the Independent Order of Foresters
It may be important to know that Foresters Life Insurance is not a publicly held insurer like most of their competitors; rather, they are owned by the Independent Order of Foresters whose mission it is to help hard-working everyday families reach their long-term financial goals. When you purchase a life insurance policy or other financial product from Foresters, you automatically become a member of the fraternal benefit society (you do not have to be active) and have access to the benefits they provide for the communities they invest in.
The company is organized so that it can report to and share profits with its policyholders rather than stockholders. The company as a fraternal benefit organization has helped families build financial security and be part of an organization that makes a difference in the member's (policyholder's) community. As a 140-year-old organization, Foresters Financial has participated in helping millions of members and their communities gain access to financial protection.
2. Foresters Financial is one of the Top Insurers to offer Final Expense Insurance
Final Expense Insurance is one of the most vital insurance products that is marketed to seniors across the
United States. Because of the needs of the senior market, the insurance industry developed this life insurance product to offer whole life insurance with lower face amounts that can be purchased without the need for a medical exam.
Final Expense Insurance is an affordable method for seniors to provide the funds needed to pay the expenses they would normally pass on to surviving loved ones. Typically these expenses amount to a funeral, burial, and cremation expenses, unpaid nursing home expenses, and unpaid medical bills. Other than Medicare, final expense insurance may be one of the most important needs for seniors across America.
As an insurance company, Foresters Life Insurance continues to earn high ratings from national rating services, in fact, The Independent Order of Foresters, Foresters Life Insurance Company, and Foresters Life Insurance and Annuity Company have received and maintained an A (Excellent) rating from A.M. Best rating services for over a dozen years.
Foresters Life Insurance Products
Foresters Financial offers a complete portfolio of insurance products for its members and prospective members:
- “Your Term” Level Term insurance for applicants looking for low-cost life insurance that need a large death benefit.
- Plan Right Whole Life – For applicants wanting the guarantees and benefits provided by whole life insurance.
- Advantage Plus Whole Life – For applicants who want to build significant cash value that can be used as a funding vehicle for large individual purchases and major business expenses.
- Interest Sensitive Whole Life – A popular choice for applicants who required financial solutions for estate planning, and for business owners to use for business continuation.
- SMART Universal Life Insurance – This is a flexible life insurance product that allows the policyholder to modify their payment amount or even their face amount to accommodate life events.
- Variable Universal Life – Variable Universal Life is available to applicants who want to build cash value on a tax-deferred basis and are comfortable with investment risk.
- ISP Choice Variable Life – The ISP Choice product is a financial solution for applicants who want life insurance protection combined with the ability to accumulate significant cash value that earns interest from professionally managed investment subaccounts.
3. Foresters Life Insurance offers Competitively Priced Insurance Products
Since the mission at Foresters is to help everyday families reach their financial goals, it’s important that their products are competitively priced in the marketplace. For the purpose of this article, we are going to discuss Final Expense Insurance plans that are available from Foresters Life Insurance.
Foresters currently offer three types of final expense policies:
- Level Benefit Final Expense Insurance – This policy offers a full death benefit starting on the issue date and has no waiting period. Although this is a no medical exam insurance policy, the applicant will have to qualify by answering every health question “no” and get cleared by the prescription drug history report.
- Graded Benefit Final Expense Insurance – The graded benefit policy is available to applicants that do not qualify for a level benefit plan and can answer “no” to the questions on the graded benefit application. The graded benefit policy is priced slightly higher than the level benefit plan and has a graded death benefit during the first two years of the policy. If the policyholder dies from natural causes in the first two years, the beneficiary would receive the greater of the sum of the total premium paid accumulated with 4.5% interest or 30% of the face amount in effect for the first year, and 70% in effect on the second year. After the first two years, the death benefit is 100%. If the death is accidental, Foresters will pay out the full benefit even during the first two years.
- Modified Benefit Final Expense Insurance – The modified benefit plan was designed for applicants who do not medically qualify for the level or graded benefit plans. The pricing for the modified benefit plan is much higher than the level benefit plan and it contains the two-year waiting period.
4. As a Fraternal Benefit Company, Foresters Invests in Community Programs
Foresters Financial gets involved in the community. Most publicly held companies only get involved by purchasing advertising space but as a fraternal benefit insurer, Foresters does a lot more than advertise.
- Competitive Scholarship Program
- Community Grants Program
- National Charitable Partnerships
- Active in Many Communities
5. Foresters Financial is Highly Rated
Financial strength should also be a part of your decision-making process when selecting a life insurance company. Foresters has proven its ability to stay financially sound year after year so that the company can respond to the needs of its policyholders.
A.M. Best, one of the most well-known rating services for insurance companies has awarded Foresters Life Insurance with an A (Excellent) financial strength rating. In their most recent rating statement, A. M. Best went on to report that "An "A" (Excellent) rating is assigned to companies that have a strong ability to meet their ongoing obligations to policyholders and have, on balance, excellent balance sheet strength, operating performance and business profile when compared to the standards established by A.M. Best Company.”
Foresters Financial is very transparent when it comes to their financial position and every year they post their reports online for all members and policyholders to review. Click Here for the company’s 2017 Financial Highlights.
