PDF Understanding life insurance

Understanding life insurance

The life insurance solution you choose can have a big impact on your financial stability and overall wellness.

How life insurance can help

In today's fast-paced world, it's important to know that there are some things you don't have to worry about. Life insurance can give you peace of mind, secure in the knowledge that financial protection is in place for your loved ones in the event of a loss. By ensuring your family's financial stability, it can allow you to focus on living a healthy and fulfilling life.

Generally free from federal income tax,1 life insurance proceeds can be used in a number of ways. Here's how life insurance can help your family.

Pay final expenses. Insurance proceeds provide beneficiaries with an immediate source of funds that can be used to pay medical bills, funeral costs and related expenses.

Mortgage protection. Your loved ones can use insurance to cover mortgage payments or pay off the entire loan,

easing financial stress and giving them the opportunity to remain in the family home.

Income replacement. A sudden loss of income can have a harmful impact on the well being of surviving family members. Your family can use life insurance proceeds to maintain their standard of living.

Estate planning. For individuals who may owe estate taxes, life insurance can be an effective way to pay the costs of settling your estate, removing the burden from loved ones. Federal and state state tax laws are complex. Please contact a legal, tax or estate planning professional for guidance.

Charitable giving. Life insurance can help you expand your generosity to your favorite charity and may also provide a valuable tax benefit.

How much life insurance do I need?

The amount of life insurance you need should take into consideration factors such as your current income, your savings, how much debt you have accumulated and your family's future education, retirement and financial needs. Age counts as well -- you may require different life insurance protection at different life stages.

The best way to determine how much life insurance you need is to meet with a life insurance agent and complete a Survivor Needs Analysis or you may also utilize our online life insurance needs calculator at

What types of life insurance are available from Foresters Financial?

Term life insurance provides coverage for a specified period of time--usually 10, 20 or 30 years. Term insurance only provides a death benefit if the insured dies during the specific period of time or term. Term insurance does not accumulate cash value.

Permanent life insurance is intended to provide protection for the life of the insured and typically offers a cash value component. There are various types of permanent insurance available, the most common include:

Whole life provides traditional life insurance coverage with cash value accumulation based on guaranteed and current interest rates.

Universal Life generally offers flexible premiums and death benefits, with a minimum interest crediting rate that is typically guaranteed by the insurer.

Did you know...

Many people believe life insurance coverage is more expensive than it is. On average, consumers estimate the cost of life insurance as being three times as high as the actual price.2

More than 35% of all U.S. households would feel adverse financial impacts within one month if a primary wage earner died.2

Approximately 50 million U.S. households recognize they need more life insurance.2

33% of Americans in a committed relationship wish their partner would purchase more life insurance.2

Speak with your life insurance agent

Life insurance is not a "one-size-fits-all" approach. At Foresters, we have a range of products to meet your needs. Your agent can review your personal situation and make

appropriate recommendations. And as your life changes, your life insurance agent can re-evaluate your needs and suggest new products or changes to existing products.

Compliments of:

For more information about Foresters Financial go to or call us toll-free at 800-828-1540.

Helping is who we are

Since 1874, Foresters Financial has been providing socially responsible financial services to individuals and families. Today, we still embrace our purpose--to enrich family and community well-being. We continue to innovate products and services that go beyond financial planning to provide benefits that empower our clients and members. We help them help make a positive difference in the world. Giving back is not a new concept for us. It's what defines us. Because helping is who we are.

Foresters Financial and Foresters are trade names and trademarks of The Independent Order of Foresters (a fraternal benefit society, 789 Don Mills Road, Toronto, Canada M3C 1T9) and its subsidiaries. NC158

Products may not be available or approved in all states and are subject to underwriting approval, limitations, contract terms and conditions, and state variations. Refer to the insurance contract for your state for these terms and conditions. For complete costs and details, see your life insurance agent. Certificate guarantees apply only to certain insurance features and are subject to the claims-paying ability and financial strength of the issuing company. Life insurance certificates are issued by The Independent Order of Foresters.

1 Foresters, their employees and life insurance representatives, do not provide, on Foresters behalf, estate or tax advice.

2 F acts of Life, 2018 LIMRA, LIAM September 2018.

504255 US (03/19)

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