Archive for the Foresters ULI Category

Death Benefit Option Changes

Forester Universal Life

After the first Certificate Anniversary the member may elect to change the death benefit option for the certificate.

If the change is from the Level Insured Amount option to the Insured Amount Plus Account Value option, the following happens:

  • the Insured Amount is reduced to the then current Net Amount at Risk,
  • the Net Amount at Risk will be level from that date forward. Foresters may require evidence of insurability to effect this change as the future Net Amount at Risk under the new option will be greater than under the original option,
  • the applicable Surrender Charge and Change Fee are taken from the Account Value.


If the change is from the Insured Amount Plus Account Value option to the Level Insured Amount option, the following will happen:

  • the Insured Amount is increased to be equal to the sum of the original Insured Amount plus the then current Account Value,
  • the Change Fee will be taken from the Account Value.• The surrender charge, if applicable, will be increased proportionately.


Secondary Guarantee Rider

Forester Passport offers a Secondary Guarantee Rider until age 100. It is important to note that the applicant must select this rider by checking the appropriate box on the application.

The Secondary Guarantee Rider ensures that the base certificate coverage will never lapse during the lifetime of the insured and before age 100, if, on each Monthly Anniversary:

• the total of the premiums paid to that date, less

• withdrawals and outstanding loan amounts, equals or exceeds:

• the total of the Secondary Guarantee Premiums payable on each Monthly Anniversary from the Issue Date up to and including the current Monthly Anniversary.

The total premium paid includes any premiums waived by the Disability Waiver Rider.

If a certificate includes the Secondary Guarantee, but at some time the member fails to meet the premium test outlined, there is a two-year period during which the premiums may be paid to “catch-up” to the amount required. If the premium amount still fails the test after the two-year period, the Secondary Guarantee is no longer applicable and cannot be recaptured.

The Secondary Guarantee Rider has no Rider Monthly Deduction, so it adds no additional cost for the Insured Amount coverage. In effect, the purpose of the Secondary Guarantee Rider is to allow the member to pay premiums to assure the Insured Amount stays in effect until age 100 – regardless as to any potentially unfavorable changes in Cost of Insurance rates or interest rates in future Certificate Years. Otherwise, increases in the planned premium may be necessary in future years to prevent coverage from lapsing before age 100.

The Secondary Guarantee Premium is a monthly amount that will be stated, if the Rider is attached, in the Certificate Specifications at issue and in each Annual Statement. It is determined by a formula that considers age at issue, gender, insurance class, band and any substandard ratings. The Secondary Guarantee Premium will also be shown, for any case where it is requested, in the illustration.

Note: the Secondary Guarantee Rider applies to the base coverage only. Should the Secondary Guarantee be activated, any riders will terminate, except the Secondary Guarantee Rider and the Disability Waiver Rider, if a waiver claim is in effect at the time.

The interaction of the Secondary Guarantee Rider and the Disability Waiver Rider is quite complex. If the situation arises where a member with both riders makes a claim under the Disability Waiver Rider, the insured will need to understand the requirements that are necessary to protect the Secondary Guarantee Rider. Because the waived amount may be insufficient to cover the full Secondary Guarantee Premium, it may be necessary to continue to pay some level of premium to fulfill the requirement for the Secondary Guarantee Rider.

If the member selects the Secondary Guarantee Rider, but the certificate is issued other than as applied for, and the change has resulted in a Secondary Guarantee Premium in excess of the planned premium, the agent will need to consult with the member to increase the planned premium. Otherwise, the agent must explain to the member that the Secondary Guarantee Rider will not be effective.

Note: The Secondary Guarantee Rider is not available in all states. Be sure to check availability in your state.

(Policy wording context extract)

Increases and Decreases – The Secondary Guarantee Premium will increase each time there is an increase in the Insured Amount, the addition of a rider or an increase in the Rider Insured Amount of any rider. This new increased Secondary Guarantee Premium will be used in the premium test for any period after the change. Similarly, the Secondary Guarantee Premium will decrease for a reduction in Insured Amount, dropping a rider or a reduction in the Rider Insured Amount of any rider.


Forester Passport Universal Life Insurance

Forester Passport Universal Life Insurance is a very practical type of permanent, cash value form of life insurance offered by Foresters intended for those individuals seeking protection for a lifetime.

Forester Passport allows the insured considerable flexibility in making coverage changes as life needs change. Depending upon individual circumstances, the insured may be able to:

  • change the death benefit and planned premium, within underwriting guidelines,
  • add extra premium to get an accelerated cash value build-up, within guidelines,
  • obtain cash for personal or emergency needs through withdrawals or certificate loans,
  • skip paying a premium or pay less premium than planned,
  • add additional coverage for the primary insured or family members by way of riders (at additional cost), or
  • provide some protection against significantly adverse future Cost of Insurance charges or interest rates (Secondary Guarantee Rider).Forester Passport also offers important guarantees to help ensure that the certificate will stay in force, based upon premiums paid as described below.This Producers Guide highlights important features of Forester Passport. However, there are limitations and conditions relating to the flexibility of the product. The certificate and riders issued to a member are considered the final authority on coverage provisions. Be sure to review the specimen certificate and riders provided.Additionally, it is important to recognize the variations in the contract that arise due to state regulatory requirements. This guide provides information about the general version of the contract. Be sure to familiarize yourself with any variations that are applicable in your state.

Foresters, their agents, and employees do not give legal or tax advice. The tax information given in this Guide is merely a summary of our understanding of current laws and regulations. You should recommend that clients contact their own tax or legal advisors in response to any questions on tax related matters.

Death Benefit Options -

Forester Passport offers two death benefit options:

Forester passport universal life Insurance Death Benefits Option Chart

Forester passport universal life Insurance Death Benefits Option Chart


Advanced Ages for Forester Passport Universal Life Insurance–

Forester Passport Universal Life Insurance does not have a maturity date. The certificate may stay in effect until the death of the insured, even if that occurs after age 100. In most states the full death benefit, according to the selected option, continues. In some states, the death benefit is reduced to the amount of the Cash Value at the Certificate Anniversary nearest age 100.