Ben Nguyen 
What is Foresters Financial?
Founded in 1874 and based in Toronto, Foresters Financial is one of Canada’s oldest and most established life insurance companies. It operates as a fraternal benefit society, functioning as a non-profit organization aiming to serve its members rather than shareholders.
Foresters Financial has over 3 million members across Canada, the United States and the United Kingdom. The company takes pride in giving back and having a positive community impact by supporting financial literacy, healthcare, education, volunteering, and more initiatives.
Some key facts about Foresters Financial:
- Rated “A” (Excellent) for financial strength by AM Best
- Accredited with an “A+” rating from the Better Business Bureau
- Assets totalling $12.2 billion
- Liabilities of $10.6 billion
- Surplus of $1.5 billion
Update December 31,2022 – source : https://www.prnewswire.com/news-releases/foresters-financial-maintains-its-a-excellent-am-best-and-a-dbrs-financial-strength-ratings-301955559.html
With over 145 years of experience serving Canadian policyholders, Foresters Financial offers a wide range of insurance solutions and financial services. Let’s examine their offerings more closely.
What Products Does Foresters Life Insurance Offer?
The insurer provides various solutions to meet different needs and budgets. Their main policy types include:
- Term life insurance
- Permanent life insurance
- Critical illness insurance
Term Life Insurance
The company offers flexible term life insurance tailored to provide temporary financial protection. Their term life plans provide guaranteed level premiums over the initial policy term, ranging from 10 to 30 years, depending on the selected policy.
Face amounts start as low as $25,000 and go up to $5 million in coverage. This allows suitable term life insurance options for individuals and families at different life stages.
Five of the critical features of term life insurance include:
- Convertibility: Term policies can be converted to permanent life insurance products offered by Foresters without additional medical underwriting up to age 71. This allows you to extend your coverage as needs change.
- Renewability: Term 10 and 20 policies can be renewed until age 90. The Term 30 plan renews for 5-year terms after the initial 30 years. There is also a simplified issue: non-medical policy renewable to age 75.
- Accidental death benefit: An additional payout in case death occurs due to an accident before age 70. Rider coverage amounts range from $25,000 to $300,000.
- Disability waiver of premium: Waives term life policy premiums if you become disabled before age 65 and satisfy a 6-month waiting period. The waiver continues as long as the disability persists.
- Children’s term insurance: This policy covers newborn children under age 25 with $5,000 in term life coverage each. The premium is added to the base policy, and coverage can be converted to adulthood.
Foresters Life Insurance offers different types of term life insurance policies in Canada:
- Term 10: Available to ages 18–75, terms of 10 years, face amounts from $100,000 to $5 million
- Term 20: Available to ages 18-65, terms of 20 years, face amounts from $100,000 to $5 million
- Term 30: Available to ages 18-55, terms of 30 years, face amounts from $50,000 to $5 million
- EZ Term: Simplified issue with no medical exam required. Available to age 75, face amounts from $25,000 to $250,000. Does not include riders.\
Having multiple term length options accommodates short-term insurance needs like mortgages and longer-term income replacement needs. The renewable nature of their term life plans and ability to convert to permanent insurance also provides flexibility.
Permanent Life Insurance
The insurer offers permanent life insurance in addition to term life insurance. This includes both participating and non-participating whole life policies.
Permanent life insurance protects lifelong death benefits and tax-deferred cash value growth. Once the policy is issued, the premiums are guaranteed to be the same for life and never increase with age.
Here are some details on two permanent life insurance options:
- Advantage Plus Whole Life: This participating whole life policy earns dividends that can be taken as cash or used to buy additional coverage. Premiums can be paid for ten years, 20 years, or for life.
- Non-Par Whole Life: This non-participating policy does not pay dividends but has features similar to those of the Advantage Plus plan. Premiums are payable for 20 years or life.
Both types of permanent life insurance allow customization through optional riders that provide benefits like:
- Disability waiver of premium
- Accidental death benefit
- Children’s term insurance
- Guaranteed insurability to purchase more coverage in the future without medical underwriting
Participating and non-participating permanent life insurance choices meet clients’ needs who want cash value growth through dividends or more cost certainty without dividends.
Whole life insurance’s lifetime coverage and low premiums can provide financial stability and lasting value. Converting term policies to permanent insurance also ensures continuing coverage as needed at different life stages.
Critical Illness Insurance
In addition to life insurance coverage, the company also provides living benefit protection through critical illness insurance plans.
These policies pay out a tax-free lump sum (up to $100,000 or $2 million, depending on the plan selected) if a person is diagnosed with a specified covered critical illness or condition.
Foresters Life Insurance offers two main critical illness insurance options:
- Live Well: Covers 4 conditions and provides more affordable protection of up to $100,000. Simplified underwriting using by answering health questions.
- Live Well Plus: Covers 25 conditions and provides up to $2 million in coverage. Requires full medical underwriting for Life Insurance with Pre-Existing Conditions
Both plans are available in 10-year renewable terms or can be purchased until age 75. Choosing between primary and enhanced coverage allows clients to find the right level of critical illness protection.
The critical illness coverage payouts can help offset treatment costs or provide financial stability during recovery and rehabilitation. The tax-free lump sum payments also offer flexibility in usage.
Additional Insurance and Financial Products
Beyond life and critical illness insurance, Foresters Financial also provides:
- Annuities – including RRSPs, RRIFs, and TFSAs to help save for retirement
- Segregated fund policies – combining market-linked growth potential with insurance protection
- Disability Income Protection – replacing income if you cannot work due to illness/injury
- Travel Medical Insurance – emergency medical coverage for trips outside Canada
So, in addition to core life insurance offerings, the insurer also supplies a diverse range of supplementary insurance and financial products to help Canadians plan for the future.
What Are the Pros and Cons of Foresters Life Insurance?
Below, we summarize some of the critical advantages and potential drawbacks of selecting Foresters Life Insurance for your life insurance needs:
Pros:
- Long-standing history and reputation as one of Canada’s oldest life insurers
- Wide range of policies from term to permanent to critical illness
- Unique fraternal member benefits and community support initiatives
- Participating dividends available to grow cash values (Advantage Plus policy)
- Ability to convert term to permanent coverage without additional underwriting
Cons:
- No online quotes are available; you must contact an agent.
- Limited term lengths compared to some competitors
- Permanent plans may cost more than similar coverage from other insurers.
- Claims processing is still done by paper mail rather than digitally.
- Generally more expensive for younger, healthy applicants
- While Foresters offers some uniqueness, their lack of online quotes and pricing that skews higher for those under 50 are disadvantageous compared to newer direct insurers. However, Foresters remains competitive for specific demographics, like seniors seeking permanent insurance.
How Much Does Foresters Life Insurance Cost?
As a mutual insurer without shareholders, Foresters Life Insurance aims to provide coverage at cost rather than maximizing profits. However, pricing is influenced by factors like age, gender, health, lifestyle, and the amount of insurance selected.
Here are sample monthly costs for a 20-year, $500,000 term life policy from Foresters for healthy non-smokers:
| Age | Male | Female |
|---|---|---|
| 25 | $30.15 | $20.70 |
| 30 | $30.15 | $20.70 |
| 35 | $31.50 | $22.95 |
| 40 | $45.00 | $33.30 |
| 45 | $72.00 | $51.30 |
| 50 | $123.75 | $82.80 |
| 55 | $213.75 | $157.05 |
| 60 | $423.00 | $298.80 |
| 65 | $716.40 | $487.80 |
Term life rates from Foresters tend to be most competitive for older applicants, while younger individuals may find lower premiums from other insurers. Using online quoting tools to compare rates across multiple providers based on your situation is essential.
Foresters Life Insurance pricing for permanent cash value policies also tends to be more advantageous for older policyholders or those looking for more significant insurance amounts, where underwriting discounts can better offset base pricing.
Again, comparing quotes for your specific parameters is critical to finding the best rates. The costs above are merely sample illustrations.
How to Get a Foresters Life Insurance Quote?
One notable disadvantage of Foresters Life Insurance is that it does not provide online life insurance quotes. You must contact an agent to receive pricing and apply for coverage.
You can request quotes and assistance in a few different ways:
- Call to speak with a Foresters agent directly.
- Visit the Foresters website and fill out the form to have an agent contact you by phone or email.
- Contact your existing Foresters Financial advisor if you already have one.
To receive personalized pricing, you must provide information about your age, health, medical history, family history, lifestyle, income, desired coverage amount and beneficiaries.
- While not as fast and convenient as online quoting, an agent can help explain your options and guide you through the application process. However, it’s still wise to use online comparison tools first to get quotes from multiple insurers before applying through Foresters. This ensures you find the best rates.
What is the Foresters Life Insurance Underwriting and Approval Process?
Once you apply and submit your initial information to Foresters, an underwriter will review your file and determine your eligibility for coverage and pricing.
Depending on your age and health, additional medical screenings may be required as part of the underwriting process, such as:
- Medical exam to check height, weight, blood pressure, pulse, etc.
- Blood profile to test cholesterol levels, liver and kidney function, nicotine, etc.
- Urine sample to assess health markers
- Electrocardiogram (EKG) to evaluate heart health.
- Doctors’ records to confirm existing conditions
For small policies under $100,000, Foresters may approve coverage using simplified underwriting without tests, instead relying on the health questionnaire.
- After underwriting, you will receive an offer outlining the approved policy terms and premiums. As long as you pay your first premium, coverage goes into effect after any policy free look period expires.
What are the unique benefits of Foresters Financial to members?
One distinct advantage of selecting insurance coverage through Foresters Financial is that you become eligible for their member benefits and community support programs.
As a fraternal benefit society, Foresters aims to improve lives and communities. Once insured with Foresters, you can take advantage of an array of member discounts, events, education incentives, and volunteering opportunities, including:
- Through the MemberPerks program, members have access to discounts on everyday services. This includes savings on entertainment, travel, shopping, and more.
- Funding of local community and volunteering initiatives through the Foresters Community Grants program.
- Access for members aged 17-29 to networking, leadership conferences, and scholarships through Foresters Competitive Scholarships.
- Foresters will pay out charitable Donations of up to 1% of your coverage amount, up to $100,000, upon passing.
- Orphan scholarships are provided through Foresters Go On Opportunities to help pay for educational pursuits.
- Member assistance programs that provide confidential counselling, financial coaching, and more.
This member-benefit approach helps set Foresters apart from regular life insurance companies and creates a sense of community like : Manulife insurance, BMO life insurance, Ivari life insurance, Wawanesa life insurance, IA life insurance, UV life insurance, Canadian Premier Life Insurance,… If you value participating in socially conscious programs, Foresters insurance offers this advantage.
Summary
Foresters Financial is a reputable life insurance provider in Canada, known for its positive track record and commitment to social responsibility. While Foresters Life Insurance may be appealing to those who value companies that give back, it’s important to compare quotes from multiple insurers to find the best value and premiums.
Healthier individuals under 50 and those seeking extensive policies may find lower rates from newer direct life insurers. However, Foresters Life Insurance remains a solid option for certain situations, such as seniors needing permanent life insurance or annuities, those who qualify for advantageous underwriting classes, clients who want to bundle multiple insurance products, and applicants who prefer working with an agent advisor.
Ultimately, finding the right life insurance provider depends on your financial situation, priorities, and insurance needs. It’s important to take the time to inform yourself, compare options, and determine what matters most to make the best choice.
Foresters Life Insurance in Canada – FAQs
Is Foresters life insurance renewable?
Yes, Foresters term life policies are guaranteed renewable up to certain ages without additional medical underwriting. Their term 10 and 20 plans renew up to age 90.
Can smokers get life insurance coverage from Foresters?
Yes, Foresters will insure smokers. They also offer a Quit Smoking Incentive Plan that rewards smokers who quit with discounted non-smoker rates.
How do I change the beneficiary on my Foresters life insurance?
To change your beneficiary, you need to request a beneficiary change form by contacting Foresters customer service. Once completed and returned, they will update your policy.
Can I pay my Foresters life insurance premiums monthly?
Yes, Foresters allows life insurance premiums to be paid on a monthly basis. This can be done by automatic bank withdrawal from your chequing account.
Does Foresters offer online access to my policy documents?
No, Foresters does not currently offer online policy document access. Statements and forms are mailed to you physically. Some documents can be emailed.
What is the maximum coverage amount for Foresters life insurance?
Foresters offers up to $5 million in term life insurance coverage to eligible applicants. Permanent and critical illness policies have lower maximums of $2 million.
Can I manage my Foresters life insurance policy online?
No, Foresters does not offer online self-service for policy management. You need to call, email, or mail in forms to make policy changes or updates.
Does Foresters sell life insurance for seniors?
Yes, Foresters provides permanent life insurance and annuity products designed for seniors to help with retirement planning and later-life needs.
Is Foresters life insurance convertible?
Yes, Foresters term life insurance offerings include a convertibility feature allowing you to switch to a permanent life insurance policy in the future without added medical underwriting.
How do I make a claim on my Foresters life insurance policy?
To make a life insurance claim with Foresters, you need to download the claim forms from their website and mail the completed paperwork along with death certificate copies to their office.
Who regulates Foresters Life Insurance?
Foresters Life Insurance products are regulated federally by the Office of the Superintendent of Financial Institutions (OSFI) as well as provincially by provincial regulators.
Can I return Foresters Life Insurance after the free look period?
No, you cannot return the policy for a refund after the free look period ends unless you did not receive the policy you applied and paid for.
How do I lower my Foresters Life Insurance premiums?
Ways to potentially lower your Foresters Life Insurance premiums include improving health/lifestyle, opting for longer terms, buying at younger ages, taking advantage of discounts, and bundling policies.
Does Foresters Life Insurance offer guaranteed issue policies?
No, Foresters does not currently offer guaranteed issue life insurance. All policies require an application with some underwriting.
Is Foresters Life Insurance available in my province?
Foresters Life Insurance products are available in all Canadian provinces and territories. Availability of certain plans may vary.
Does Foresters life insurance cover suicide?
Most Foresters life insurance policies will not pay out if death is due to suicide within the first two years. Converted policies may have shorter exclusions.
Can I customize my Foresters life insurance policy?
Yes, optional riders allow you to customize Foresters life insurance to add benefits like waiver of premium, accidental death, and guaranteed insurability.
Is Foresters life insurance contestable?
Yes, Foresters can contest and deny life insurance claims within two years for misrepresentations made on the application. After two years, the policy is incontestable.
Does Foresters life insurance accumulate cash value?
Foresters permanent life insurance policies accrue cash value on a tax-deferred basis, while their term life insurance does not build cash value.
Can I take a loan against my Foresters life insurance policy?
Yes, you may be able to take a loan against the available cash surrender value of your participating whole life insurance from Foresters.
Does Foresters life insurance have exclusions?
Foresters life insurance may have exclusions for death from acts of war, terrorism, suicide within two years, aviation, or other high risk activities depending on the policy.
Can I renew my Foresters life insurance without a medical exam?
Yes, Foresters term life policies are guaranteed renewable to certain ages without requiring further medical exams or underwriting.
Does Foresters life insurance pay dividends?
Only Foresters participating whole life insurance pays dividends. Their term life and non-par whole life insurance do not pay dividends.
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