Foresters SMART UL e-kit

Transcription

1 Foresters SMART UL e-kit SMART UL Producer Guide (02/15) Page 2 SMART Consumer Brochure US (11/14) Page 16 SMART UL Coverage at a Glance Worksheet US (11/14) Page 18 Budget Review Sales Sheet US (01/12) Page 20 Lifestyle Protection Needs Sales Sheet US (01/12) Page 21 Permanent Protection Needs Sales Sheet US (01/12) Page 22 Foresters Financial Strength US (07/15) Page US (11/14)

2 Foresters SMART Producer Guide Universal Life Insurance This guide is intended to answer your questions, provide ideas to help you sell Foresters SMART Universal Life Insurance and is for information purposes only. Check Foresters producer website for other tools to support your learning needs. You must ensure that you correctly represent, to a customer or prospect, the product features based on the actual wording of the applicable certificate and riders for your state. Products and features may not be available in all jurisdictions, and certain restrictions may apply. Consult Foresters producer website for more detailed product information and availability. Foresters, its employees and life insurance representatives do not provide, on Foresters behalf, legal, tax, or estate planning advice. The information here reflects our understanding of current laws and regulations. Prospective purchasers should contact their own legal, tax, or estate planning advisors on their specific situations. This document is intended for producer use only and should not be disclosed to the public. The information contained in this guide is general in nature and is subject to the applicable certificate and rider wording. Foresters is the trade name and a trademark of The Independent Order of Foresters, a fraternal benefit society, 789 Don Mills Road, Toronto, Canada M3C 1T9. For Producer Use Only US (02/15)

3 CONTENTS FAST FACTS... 3 PRODUCT SPECIFICATIONS... 4 DESCRIPTION... 4 TARGET MARKET... 4 ISSUE AGES... 4 UNDERWRITING CLASSIFICATIONS... 4 RATINGS... 4 FACE AMOUNT... 4 MINIMUM PREMIUM... 4 ILLUSTRATIONS... 4 GUIDELINE PREMIUM TEST (GPT) & CASH VALUE ACCUMULATION TEST (CVAT)... 4 COST FACTORS AND EXPENSES... 5 COST OF INSURANCE (COI)... 5 MONTHLY DEDUCTIONS... 5 SURRENDER CHARGES... 5 COVERAGE AND FLEXIBILITY... 5 LIFE INSURANCE DEATH BENEFIT OPTIONS... 5 DEATH BENEFIT OPTION CHANGES... 6 FACE AMOUNT INCREASES AND DECREASES... 6 COVERAGE BEYOND AGE CHANGE FEE... 6 ACCOUNT VALUE... 6 CASH VALUE... 6 INTEREST RATE EXCHANGES AND DUMP-INS... 7 SURRENDERS, WITHDRAWALS, AND LOANS... 7 SURRENDERS... 7 INCREASES AND DECREASES... 7 WITHDRAWALS... 7 LOANS... 7 LOAN REPAYMENT... 7 PREFERRED LOANS... 7 MINIMUM PREMIUM... 8 INCREASES AND DECREASES... 8 MINIMUM PREMIUM NO-LAPSE GUARANTEE... 8 LAPSE AND GRACE PERIOD... 8 REINSTATEMENT... 8 RIDERS... 9 ACCIDENTAL DEATH RIDER... 9 WAIVER OF MONTHLY DEDUCTIONS RIDER... 9 GUARANTEED PURCHASE OPTION RIDER... 9 CHILDREN S TERM RIDER... 9 FAMILY HEALTH BENEFIT RIDER Page 1 of 13

4 DISABILITY INCOME RIDER (ACCIDENT ONLY) COMMON CARRIER ACCIDENTAL DEATH RIDER ACCLERATED DEATH BENEFIT RIDER SOFTWARE HELP KEY CONTACT INFORMATION SALES SUPPORT OUR PRODUCER SERVICE CENTER MARKETING SUPPLIES Page 2 of 13

5 FAST FACTS Product Type Flexible premium universal life insurance Premium May be payable to age 100 Underwriting Classification Non-Medical Juvenile (issue ages 0-15) Non-Tobacco (issue ages 16-75) Tobacco (issue ages 16-75) Medical Juvenile (issue ages 0-15) Preferred Plus Non-Tobacco (issue ages 16-85) Preferred Non-Tobacco (issue ages 16-85) Non-Tobacco Plus (issue ages 16-85) Issue Ages (age nearest birthday) Illustrations Face Amount Bands 0-75 (non-medical) 0-85 (medical) Required for certificate issue Non-Medical Issue Age 0-15: $25,000 to $150,000 Issue Age 16-55: $25,000 to $250,000 Issue Age 56-75: $25,000 to $150,000 Medical, Band I (less than $500,000) Issue Age 0-15: $150,001 - $499,999 Issue Age 16-70: $100,000 - $499,999 Issue Age 71-75: $50,000 - $499,999 Issue Age 76-85: $25,000 - $499,999 Non-Tobacco (issue ages 16-85) Medical, Band II (over $500,000) $500,000 and up for all issue ages Premium Modes Loans Loan Rate Minimum Premium No-Lapse Guarantee Tobacco Plus (issue ages 16-85) Tobacco (issue ages 16-85) Annual Semi-Annual Quarterly Monthly (PAC only) Can be borrowed against available cash value as the security 5% (Loan collateral account will be credited 3% rather than the declared rate) Preferred loan rate at 3% (after the 7 th certificate year) Ten year guaranteed protection subject to the Minimum Premium Payment requirements Minimum Modal Premium Death Benefit Options Face Amount Changes Withdrawals For Issue Ages 71-85: Preferred, Preferred Plus, Tobacco Plus, and Non-Tobacco Plus underwriting classes are only available if the face amount is at least $100,000. $300/annually $150/semi-annually $75/quarterly $25/monthly Level Increasing Yes, increases and decreases are available after the first certificate anniversary, subject to certain restrictions $500 minimum Can be made after the first certificate anniversary, if cash value is available Guaranteed Minimum Interest Rate Annual interest rate of 3.0% Monthly Administration Deduction $12 Surrender Charges Decreasing charge for 15 years Insurer The Independent Order of Foresters (Foresters) Page 3 of 13

6 PRODUCT SPECIFICATIONS DESCRIPTION Foresters SMART UL (SMART UL) is a flexible premium universal life insurance product that offers potential cash accumulation. It is available on both a non-medical and medical underwriting basis. In addition to offering potential for long-term growth, SMART UL also offers a variety of features and riders that address a broad range of personal protection needs. TARGET MARKET SMART UL is ideal for: Retirement Planning Estate Preservation Issue ages Middle-income market ISSUE AGES Non-Medical 0-75 (age nearest birthday) Medical 0-85 (age nearest birthday) When we refer to an age after the issue date, age is defined as the issue age plus the number of completed certificate years. UNDERWRITING CLASSIFICATIONS Non-Medical Juvenile (issue ages 0-15) Non-Tobacco (issue ages 16-75) Tobacco (issue ages 16-75) Medical Juvenile (issue ages 0-15) Preferred Plus Non-Tobacco (issue ages 16-85) Preferred Non-Tobacco (issue ages 16-85) Non-Tobacco Plus (issue ages 16-85) Non-Tobacco (issue ages 16-85) Tobacco Plus (issue ages 16-85) Tobacco (issue ages 16-85) RATINGS Substandard extras are available. Temporary and permanent flat extras are available. Rating classes are +50% to +400% and will be determined by Underwriting. Medical Band I: Less than $500,000 Issue Age 0-15: $150,001 - $499,999 Issue Age 16-70: $100,000 - $499,999 Issue Age 71-75: $ 50,000 - $499,999 Issue Age 76-85: $ 25,000 - $499,999 For Issue Ages 71-85: Preferred, Preferred Plus, Tobacco Plus, and Non-Tobacco Plus underwriting classes are only available if the face amount is at least $100,000. Band II: $500,000 and up for all issue ages MINIMUM PREMIUM Annual: $300 Semi-Annual: $150 Quarterly: $75 PAC: $25 ILLUSTRATIONS At the Point-of-Sale (POS) of a SMART UL, the producer must do the following: Complete an Illustration Certification form; or Provide to the Prospective Owner an illustration matching the product as applied for in the application. A copy of this illustration must be signed by the producer and the prospective Owner and submitted with the application to Foresters. GUIDELINE PREMIUM TEST (GPT) & CASH VALUE ACCUMULATION TEST (CVAT) These two tests are used to determine whether a product meets the definition of a life insurance contract. Both tests define the relationship between cash value and death benefit that are required at all times for a certificate to qualify as life insurance under the IRC The client chooses between the two tests at the time of application and cannot be changed after issue. The test selected can have a significant impact on premiums, cash values and death benefits. General Guidelines: CVAT limits cash value relative to the death benefit. GPT limits premiums paid relative to the death benefit. FACE AMOUNT Non-Medical Issue Age 0-15: $25,000 to $150,000 Issue Age 16-55: $25,000 to $250,000 Issue Age 56-75: $25,000 to $150,000 Page 4 of 13

7 COST FACTORS AND EXPENSES COST OF INSURANCE (COI) Both the guaranteed and current cost of insurance (COI) rates for the certificate vary by age, gender, insurance class, and ratings (if applicable). For medically underwritten certificates, Medical Extra rates will be a factor multiplied by the standard rates (e.g. +50 will be 1.5 x standard COI), and Occupational and Temporary Flat Extra rates may also apply (occupational flat extra default expiry at age 65) The COI rates currently charged are less than or equal to those stated in the insurance contract. The COI deduction is the COI rate per thousand multiplied by the amount at risk. Increases and Decreases It is important to keep in mind that changes in the face amount will have an impact on the total cost. MONTHLY DEDUCTIONS On the issue date and on each monthly anniversary, up to insured s age 100, a monthly deduction for the following certificate month will be taken from the account value. The monthly deduction is the sum of the following: notification showing the surrender factors applicable to a face amount increase will be sent to the owner. The surrender factor decreases over the 15-year period. The surrender factors vary by gender, issue age, duration and underwriting class. Surrender charge The surrender factor applicable Multiplied by Divided by $1,000 The face amount (if a surrender) The decrease in face amount (if a decrease)* *On Level death benefit certificates, a withdrawal automatically results in a decrease in face amount. COVERAGE AND FLEXIBILITY LIFE INSURANCE DEATH BENEFIT OPTIONS Level Death Benefit 1 The death benefit is, at any time, equal to the Face Amount in effect at that time. Cost of insurance (COI) deduction A charge for the cost of the amount at risk under the certificate. Face amount deduction A charge for the first 10 certificate years, based on the face amount. For each requested or automatic face amount increase an additional charge will be made for the first 10 years after the increase, for the increased portion. Rates vary by issue age and gender for Non-Medical and by issue age, gender and insurance class for Medical. Increasing Death Benefit 1 The death benefit is the Face Amount plus the Account Value, on the date of the Insured s death. Monthly rider deduction A charge made for each rider in effect. Monthly administration deduction A flat amount of $12. Premium expense charge 6% will be deducted from each premium paid in the first 20 certificate years, 0% thereafter. SURRENDER CHARGES Surrender charges are in effect for 15 years from issue and for the first 15 years after each face amount increase to that increased portion. A 1 Charts are hypothetical only to generally show the relationship between death benefit, amount at risk and the Account Value. Factors such as premiums paid, monthly deductions, withdrawals and interest affect the Account Value. Page 5 of 13

8 DEATH BENEFIT OPTION CHANGES After the first Certificate Anniversary the owner may elect to change the death benefit option. Level Death Benefit Changed To Increasing Death Benefit: The Face Amount is reduced to the then current Amount at Risk subject to the minimum face amount requirements The Amount at Risk will then remain the same unless the Face Amount changes Evidence of insurability may be required to effect this change The applicable Surrender Charge and Change Fee are taken from the Account Value Increasing Death Benefit Changed To Level Death Benefit: The Face Amount is increased to be equal to the sum of the Face Amount plus the then current Account Value The Change Fee may be taken from the Account Value The Surrender Charge may be increased proportionately FACE AMOUNT INCREASES AND DECREASES Requests for increases or decreases in the face amount, after the certificate is issued, are subject to certain restrictions and the minimum and maximum face amount requirements. Increases are also subject to evidence of insurability. Note: Decrease in face amount is subject to a $25 change fee and a surrender charge may also apply. COVERAGE BEYOND AGE 100 Should the insured reach age 100, no further deductions for cost of insurance (COI) or fees will be made for coverage under the certificate. Interest continues to be credited on the account value. It is important to consider the effect of any outstanding loan amount at age 100 that could cause the certificate to terminate after age 100. CHANGE FEE A $25 per transaction change fee is currently charged for certain types of transactions such as: certificate year Face amount decreases Rider cancellations or decreases Change in tobacco use Note that Foresters reserves the right to increase or decrease this fee in the future. The change fee is guaranteed not to exceed $50. ACCOUNT VALUE On the issue date, the account value is equal to the first net premium 2 paid minus the monthly deduction for the first certificate month. At anytime from the first day after the first certificate month, until the insured s age 100, the account value equals: Plus Plus Minus Minus The account value on the last monthly anniversary, The net premium received after the last monthly anniversary, The interest accrued after the last monthly anniversary, On a monthly anniversary, the monthly deduction for the next certificate month The total of all withdrawals made after the last monthly anniversary. At anytime after the insured s age 100, the account value equals: The account value on the last monthly anniversary, Plus The interest accrued after the last monthly anniversary, Minus The total of all withdrawals made after the last monthly anniversary. CASH VALUE The account value minus the loan amount (see section on Loans), if any, minus surrender charges, if applicable, is the amount received if the certificate is surrendered. INTEREST RATE Interest is accrued on a daily basis and credited to the account value monthly. The rate is determined on a portfolio basis. This means that the same rate of interest is credited to the entire un-loaned account value. Withdrawals In-force illustrations in excess of one per 2 The net premium is the premium minus the premium expense charge. Page 6 of 13

9 The certificate guarantees a minimum credited interest rate of 3% throughout the lifetime of the certificate. Foresters regularly reviews credited interest rates and will declare the current rate of interest at its discretion EXCHANGES AND DUMP-INS 1035 exchanges are allowed at the time the certificate is issued. Dump-ins are allowed at any time, subject to 7-pay and modified endowment contract (MEC) limits. SURRENDERS, WITHDRAWALS, AND LOANS SURRENDERS The certificate may be surrendered for its cash value at any time. The surrender charge is a charge made against the account value when the certificate is surrendered, or the face amount is decreased. INCREASES AND DECREASES Increases in the face amount will initiate a new surrender charge period for the increased amount, i.e. each increase has its own set of surrender charges. A portion of the surrender charge will also be applied to each decrease in the face amount (for more information on surrender charges, see section on Cost Factors and Expenses). WITHDRAWALS Withdrawals (of at least $500) from the cash value will be permitted after the first certificate year. This will result in a decrease in the account value. The withdrawal amount requested is adjusted if the cash value at that time is insufficient. Maximum withdrawal amount Account value Minus Applicable surrender charges Minus Loan amount, if any Minus Three times the most recent monthly deduction prior to withdrawal Minus The change fee (see section on Change Fee) LOANS Loan(s) may be obtained from Foresters using the certificate as collateral. Maximum Loan Request Account value Minus Applicable surrender charges Three times the most recent monthly Minus deduction prior to loan Minus Loan amount, if any Interest is charged daily on the loan amount at 5% annually. The amount of the loan requested may be adjusted if the cash value at that time is insufficient. The loan amount at any time is the balance of the unpaid amount(s) borrowed plus accrued interest. A portion of the account value equal to the then current loan amount is allocated to a loan collateral account. This loan collateral account will be credited with interest at a rate of 3% rather than the current declared rate. LOAN REPAYMENT All or part of a certificate loan may be repaid at any time while the certificate is in effect. Repayments will reduce the loan amount. The amounts paid will be applied as premium, unless otherwise specified (in writing) as a loan repayment. PREFERRED LOANS After the 7th certificate anniversary, the loan amount will be charged a preferred interest rate of 3% rather than 5%. The loan collateral account will still be credited with interest at 3%. The death benefit payable is reduced by the outstanding loan amount (and accrued interest). If the loan amount exceeds the account value (minus the applicable surrender charge), the certificate will terminate. In this case, notification will be sent to the certificate owner. Also, if the certificate terminates/lapses while there is a loan, the loan will be treated as a distribution from the certificate, and there may be tax consequences as a result. If the death benefit is level, the face amount will decrease by the amount of the withdrawal and may be subject to a surrender charge. The remaining face amount must meet the minimum face amount requirements. Page 7 of 13

10 MINIMUM PREMIUM The Minimum Premium is the modal amount of premiums required to satisfy the ten-year Minimum Premium No-Lapse Guarantee. The Minimum Premium varies by the insured s issue age, gender, insurance class, and any ratings (if applicable), and on the face amount and rider(s) in effect. The calculation of the minimum premium includes amounts paid by the Waiver of Monthly Deductions Rider. INCREASES AND DECREASES A new Minimum Premium will be determined if there is: An increase or decrease in the certificate face amount A rider is added or removed An increase or decrease in a rider benefit amount A change in the insurance class that grace period, the insurance contract will lapse. A notification will be sent to the Certificate Owner at least 31 days prior to lapse. REINSTATEMENT Foresters may approve the reinstatement of a lapsed certificate within three years of its lapse subject to: Evidence of insurability accepted by Foresters Payment of the premium that would have been required to keep the certificate and each applicable rider in effect during the grace period, without interest, plus the premium required to keep the certificate and each applicable rider from entering a grace period for three certificate months after the reinstatement effective date. The loan amount, if any, on the date of lapse, will not be reinstated. MINIMUM PREMIUM NO-LAPSE GUARANTEE Foresters guarantees that the certificate will not lapse during the first ten certificate years, even if the cash value is not sufficient to cover monthly deductions as long as, on each monthly anniversary during that period, the sum of the premiums paid, to that anniversary, is at least equal to the sum of the Minimum Premium on the issue date plus the minimum premium on each monthly anniversary from the issue date, including the current monthly anniversary, plus the total of all withdrawals. At the end of the minimum premium payment period, payment of an amount more than the minimum premium may be required to keep the certificate from lapsing. A certificate may still terminate due to a loan. See section on Loans. LAPSE AND GRACE PERIOD If, on a Monthly Anniversary, the Cash Value is less than the Monthly Deduction, or during the Minimum Premium Payment Period the requirements of the Minimum Premium No-Lapse Guarantee Provision are not met, the certificate will enter a 61 day grace period. The grace period allows additional time for the payment of sufficient premium to keep the insurance contract in force. If a sufficient amount is not paid within Page 8 of 13

11 RIDERS ACCIDENTAL DEATH RIDER Available on Life insured Issue ages Description Provides additional coverage in the event of an accidental death, caused by an accidental bodily injury and death occurs within 365 days of the injury. Issue amount Expiry date Minimum issue amount is $25,000. Maximum issue amount is 100% of the face amount (subject to a maximum of $300,000 across all Foresters certificates). The certificate anniversary on which the insured is age 70. WAIVER OF MONTHLY DEDUCTIONS RIDER Available on Life insured Issue ages Description Pays the monthly deduction, in effect at that time, to the account value, should the insured become totally disabled. Waiting period Expiry date If total disability begins prior to the certificate anniversary on which the insured is age 60 and the insured is continuously totally disabled after the rider expiry date, the benefit will continue to be provided until the earlier of: a) the date when the insured is no longer totally disabled or, b) the day the certificate is no longer in effect. If total disability begins on or after the certificate anniversary on which the insured is age 60 and the insured is continuously disabled after the rider expiry date, the benefit will continue to be provided until the earlier of: a) the date when the insured is no longer totally disabled, or b) the insured s age 65 or c) the day the certificate is no longer in effect Six months The certificate anniversary on which the insured is age 65. GUARANTEED PURCHASE OPTION RIDER Available on Life insured Issue ages 0-37 (at issue only) Description Provides an opportunity to increase the face amount on an option date, by up to the rider benefit amount, without further evidence of insurability. Due to increase in face amount, there is a corresponding change to the minimum premium, monthly deductions and surrender charges. Scheduled option dates Benefit Amount Expiry date Certificate anniversary on which the life insured is 25, 28, 31, 34, 37 and 40 years old. Special option dates include marriage, birth or adoption. Lesser of Face Amount or $30K per option. The certificate anniversary on which the insured is age 40. CHILDREN S TERM RIDER Available on Children of life insured Issue ages (for Life insured) Description Provides level term life insurance for each child, listed on the application, who is 15 days or older, has not reached their 18 th birthday at issue of the rider and is not excluded by Foresters. A child is not covered past their 25 th birthday. Issue amount Any amount between and including $10,000 - $25,000. Convertibility To a permanent plan without evidence of insurability. For child up to age 21, that child can convert up to 1X the rider benefit amount. Between ages 21 and 25, up to 5X the rider benefit amount (max $100,000/insured child on all Foresters child rider conversions for that child). Expiry date The certificate anniversary on which the insured is age 65. Note: Coverage will be extended to each person who becomes an insured child while this rider is in effect. That child must be at least 15 days old and has not reached their 18th birthday. Page 9 of 13

12 FAMILY HEALTH BENEFIT RIDER Available on Life insured Issue ages Description Qualified event and amount Max benefit amount 0-75 (non-medical, at issue only) 0-84 (medical, at issue only) This rider, automatically included on all eligible certificates (no monthly rider deductions apply), provides benefits for qualified health situations for the insured and their immediate family, of up to $650 per person per incident with a lifetime family maximum of $5,000, who have had to be transferred to a hospital in the Continental United States, Alaska or Hawaii by ambulance, visit the emergency room or stay in hospital as a result of the following: Earthquake Hurricane Tornado Tsunami Typhoon Struck by lightning Volcanic eruption Ambulance Transportation: $50 Hospital Emergency Room Examination: $100 Hospital Stay: $100/day (up to 5 days) $650 per person, per incident with a lifetime family maximum of $5,000. Expiry date The earlier of the certificate anniversary on which the insured is age 85 or the first day following the day the total of the specific benefit amounts paid under this rider equals the maximum family benefit amount Min monthly benefit Max monthly benefit Increases and decreases Death claims Number of claims Claim period Definition of total disability $300 Lesser of (at time of application): a) $2,000 for Non-medical, $3,000 for Medical b) 1.5% of the face amount (based upon total Foresters Disability Rider coverage), or c) 60% of the insured s earned income at certificate issue The benefit amount can be decreased after issue, however, increases are not permitted after issue. If the insured dies while this rider is in effect, Foresters will return 100% of the DIR premiums paid minus the sum of DIR benefits paid. Note: If the sum of DIR payouts is equal to or greater than the sum of premiums paid then there will be no return of DIR premiums upon death. Up to 2 independent claims, not to exceed 24 months per independent claim. 24 months, not required to be consecutive for a given claim. Total disability is defined in the rider, and for the: 1st Injury - Insured s inability to work at own occupation 2nd Injury - Insured s inability to work at any occupation Expiry date The certificate anniversary on which the insured is age 65. DISABILITY INCOME RIDER (ACCIDENT ONLY) Available on Life insured Issue ages Description Provides a monthly benefit for up to two years for total disability from one s own occupation, and for a second independent injury, up to two additional years for total disability from any occupation, if the insured becomes totally disabled due to injury within 180 days of that injury. Waiting 90 days period Page 10 of 13

13 COMMON CARRIER ACCIDENTAL DEATH RIDER Available on Life insured Issue ages 0-75 (non-medical, at issue only) 0-84 (medical, at issue only) Description This rider, automatically included on all eligible certificates (no monthly rider deductions apply), provides a death benefit of up to two times the face amount to a maximum of $300,000, if the insured dies within 90 days of an accidental bodily injury that occurred on a common carrier as a fare-paying passenger. Benefit amount Expiry date Two times the face amount (rider death benefit is subject to a maximum of $300,000 across all Foresters accidental death coverage). The certificate anniversary on which the insured is age 85. ACCLERATED DEATH BENEFIT RIDER Available on Life insured Description This rider, included with eligible certificates at no additional premium, provides the owner an option of accelerating a portion of the eligible death benefit and receiving an accelerated death benefit payment due to diagnosis of an eligible illness. Eligible Illness Subject to eligibility criteria and state variations, this rider can be issued with one or more of the following eligible illnesses: Chronic illness Critical illness Terminal illness Summary Definition of Illnesses Eligibility Criteria Minimum Acceleration Amount Chronic Illness means the insured: Is unable to perform, without substantial assistance from another person, at least two of the activities of daily living for a period of at least 90 days, due to a loss of functional capacity; or Requires substantial supervision by another person to protect the insured from threats to health and safety due to the insured s severe cognitive impairment. Critical Illness is the following illnesses: Life Threatening (Invasive) Cancer Myocardial Infarction Stroke Advanced Alzheimer s Disease (before the insured s 75 th birthday) End Stage Renal Failure Major Organ Failure ALS Terminal illness means the insured has a non-correctable illness or physical condition which is reasonably expected to result in death within 12 months of diagnosis. Chronic and Critical Illnesses: Issue face amount must be at least $25,000; Insured s issue age is 75 or younger; and Standard rated cases Terminal Illness: Issue face amount must be at least $25,000; All ages; and Standard rated cases $4,500 Page 11 of 13

14 Maximum Acceleration Amount Lifetime Maximum Acceleration Amount Minimum Residual Base Face Amount Payment Amount Chronic Illness In any 12-month period, 24% of the eligible death benefit on the effective date of the first accelerated payment due to chronic illness Critical Illness Lesser of a) 95% of the eligible death benefit on the effective date of the applicable each accelerated payment due to critical illness; and b) $500,000 Terminal Illness Lesser of a) 95% of the eligible death benefit on the effective date of the accelerated payment due to terminal illness; and b) $500,000 One terminal illness payment is allowed the rider will terminate after an ABR terminal illness payment Lesser of a) 95% of the eligible death benefit at the time of the first acceleration; and b) $500,000 $10,000 The payment, due to diagnosis of eligible critical illness and chronic illness, will be less than the acceleration amount which will be reduced by the following: Actuarial discount amount Loan repayment, prorated based on the acceleration amount Administration fee (current fee is $300) Actuarial Discount Amount Effect of Acceleration It is determined by Foresters: Based on factors specific to the insured, such as age, gender and premium class; Based on future mortality of the insured using the mortality table determined by Foresters; The accelerated death benefit interest rate Foresters applies; Will take into account the present value of the acceleration amount. ABR claim payment will reduce the face amount and, if any, the cash value and loan amount. The reduction to the face amount could be by more than the payment amount. Any outstanding certificate loan will be reduced by the loan repayment amount that was subtracted from the acceleration amount. Receipt of an accelerated death benefit payment is intended to qualify for favorable tax treatment under the IRC. However, depending on individual circumstances or changes to the IRC, the payment may be taxable, and may affect eligibility for public assistance or benefits. Your client should consult a qualified tax advisor and applicable government agency before receiving an accelerated death benefit payment. The actuarial discount amount and administration fee will not be applied to a terminal illness claim. The payment amount is guaranteed not be less than the certificate cash surrender value minus the outstanding prorated loan amount (based on the acceleration amount), if any. Page 12 of 13

15 SOFTWARE HELP You can access/download Foresters Advantage Plus software by logging onto Foresters producer website. Please check the state availability map for currently approved states. KEY CONTACT INFORMATION SALES SUPPORT We answer your call...with a live voice. Foresters Sales Support Team is your first, direct, live point-of-contact for all of your pre-sales needs! Our informed professionals pick up when you call, and provide the friendly assistance you need. We are here for you! Call us at Option #1, Monday to Friday from 8:30 am to 7:00 pm ET. Our knowledgeable Foresters sales team is standing by to support your business with: A live voice to answer all of your Foresters questions Sales ideas and solutions Foresters product training Illustration software and website support Advanced marketing concepts, materials and education A Single Point-of-Contact with Foresters OUR PRODUCER SERVICE CENTER Do you need to inquire about business you have recently submitted, or an existing inforce certificate? Visit our producer website (foresters.com) for quick and easy 24 hour selfservice options. Should you require additional assistance, please contact our Producer Support Line at Option #2 between Monday to Friday 8:00 am to 8:00 pm ET. MARKETING SUPPLIES Visit our producer website (foresters.com) for forms and marketing collateral. Here you will have the ability to download and/or order Foresters Sales Aids, which include: applications, product guides, consumer brochures, rate sheets, and advertising templates. Up to a maximum of 50 forms can be ordered at a time. If you need to order more than the maximum allowed, please contact Sales Support to place your order. Page 13 of 13

16 Compliments of: SMART Universal Life Insurance Universal Life Insurance Foresters membership real value Flexibility and control for today s lifestyle Life is all about making choices that balance the pressures of today with the needs of the future. Making financial choices is the same. You need protection that helps provide financial security for the future that doesn t lock you in when life suddenly changes. Universal life insurance combines lifetime insurance protection with the potential for taxdeferred 1 cash value accumulation under one insurance contract. You can also access the cash value if you need it. And, you can adapt universal life insurance to suit your needs and financial goals so you can have more flexibility both today and tomorrow. Benefits of universal life insurance Provides lifetime life insurance protection Options that offer protection for other needs, such as total disability or accidental death This brochure is provided for information purposes only; it does not form part of the Foresters SMART Universal Life insurance contract and is not intended to amend, alter, or change any of the terms and conditions of the contract. Refer to the Foresters SMART Universal Life contract for your state for these terms and conditions. Contracts are issued by The Independent Order of Foresters, a fraternal benefit society. Foresters SMART Universal Life and its riders may not be available or approved in all states and state variations may apply. Foresters SMART Universal Life and its riders are filed under the form numbers listed below, where XX represents either US or your state s postal abbreviation, as applicable. Foresters SMART Universal Life: ICC09-UL-SMART-US01 or UL-SMART-XX or UL-SMART-XX Waiver of Monthly Deductions Rider: ICC09-UL-WMD-US01 or UL-WMD-XX Accidental Death Rider: UL-ADR-XX Children s Term Rider: UL-CTR-XX Disability Income Rider (Accident Only): UL-DIR-XX Family Health Benefit Rider: UL-FHB-XX Common Carrier Accidental Death Rider: UL-CCADR-XX Guaranteed Purchase Option Rider: UL-GPO-XX Accelerated Death Benefit Rider (for Chronic, Critical and Terminal Illness): ICC14-UL-ABRCHCRTI-US01 or UL-ABRCHCRTI-XX Accelerated Death Benefit Rider (for Chronic, Critical and Terminal Illness): ICC14-UL-ABRCHCRTI-US01 or UL-ABRCHCRTI-XX Accelerated Death Benefit Rider (for Critical and Terminal Illness): ICC14-UL-ABRCRTI-US01 or UL-ABRCRTI-XX Accelerated Death Benefit Rider (for Terminal Illness): ICC14-UL-ABRTI-US01 or UL-ABRTI-XX Foresters flexible protection For over 140 years, Foresters has put its prosperity and financial strength to work for those who matter most our members. Turn to us for affordable life insurance products and all the many benefits of membership.* If you become a Foresters member, you can enjoy a surprising package of complimentary benefits that can help you and your family do more. And, you can take advantage of opportunities to develop your personal skills, attend fun family events and make a difference in your community. Visit us to learn more about your membership at: foresters.com or call Generally provides an income tax-free death benefit 1 Tax-deferred growth on cash value (some restrictions may apply) Premium flexibility within maximum and minimum limits Withdraw funds, or surrender for cash 4 Borrow and use the insurance as collateral for a loan 4 For more information about Foresters go to foresters.com or call us toll-free at The Independent Order of Foresters 789 Don Mills Road Toronto, Canada M3C 1T9 U.S. Mailing Address: PO Box 179 Buffalo, NY US (11/14) * Foresters member benefits are non-contractual, subject to eligibility requirements and limitations and may be changed or cancelled without notice. Third parties administer Legal Link, Everyday Money and Foresters Competitive Scholarships. Foresters is the trade name and a trademark of The Independent Order of Foresters, a fraternal benefit society, 789 Don Mills Road, Toronto, Canada M3C 1T9.

17 Build custom coverage Choose from a variety of optional riders, which can greatly enhance your benefits. The Children s Term Rider covers new additions to your family and can be converted to permanent life insurance in the future, regardless of the child s health. The Accidental Death Rider provides an affordable additional benefit to help your family survive financially. Protect your greatest asset Becoming unable to earn an income can have a severe impact on you and your family. So, SMART Universal Life offers disability income protection. The optional Disability Income Rider (Accident Only) can provide you with regular monthly income, so total disability due to an accident doesn t have to mean financial disaster. In addition, the optional Waiver of Monthly Deductions Rider can protect your valuable insurance coverage during total disability. Features included with basic coverage There are up to three features of SMART Universal Life that may be automatically included with your basic coverage with no additional premium that can help you and your family in times of need. The Family Health Benefit Rider pays a benefit you can use to pay some family health expenses that may occur as a result of some natural disasters such as hurricanes, tornadoes and earthquakes. The Common Carrier Accidental Death Rider provides an additional death benefit if you die of accidental injuries that occur while riding as a passenger on a common carrier, such as a bus or a train. The Accelerated Death Benefit Rider 6 provides an option to accelerate a portion of the eligible death benefit and receive a payment 7. Subject to eligibility criteria and state variations, this rider can be issued with one or more of the eligible illnesses - Critical Illness, Chronic Illness or Terminal Illness. See the back cover of this brochure for important information about SMART Universal Life and its riders. Build value to help pay for future needs Foresters SMART Universal Life offers you considerable flexibility to adjust coverage as your needs change. It also provides the security of guaranteed coverage for the first 10 years, as long as you pay sufficient premiums. 2 Whether you re planning for retirement, saving for your children s education or developing strategies to preserve your estate, SMART Universal Life can help you accumulate the cash you need. Because SMART is a universal life insurance product, it has the potential to build value beyond the death benefit. This cash accumulation portion of SMART Universal Life grows at a guaranteed minimum interest rate of 3% each year. You can even access 4 the cash accumulated for special needs, such as buying a house, paying down a mortgage or getting married. SMART Universal Life Insurance 1 Foresters, their employees and life insurance representatives, do not provide, on Foresters behalf, legal or tax advice. The information given here is merely a summary of our understanding of current laws and regulations and is not specific to your situation. Prospective purchasers should consult their tax or legal advisor. 2 Assumes no withdrawals. 3 Proceeds from an insurance certificate paid due to the death of the insured are generally excludable from the beneficiaries gross income for income tax purposes. Consult your tax advisor on your specific situation. 4 Withdrawals or loans will reduce the death benefit and cash values and may affect how long the insurance contract is in effect. For loans, interest is charged daily on the loan at 5% annually, 3% after the 7th certificate year. Surrender charges may apply to withdrawals. Income and growth on accumulated cash values are generally taxable only upon withdrawal: IRC section 72. Ask your tax advisor for details on your specific situation. 5 Insurability depends on answers to questions in the application and on the outcome of the underwriting review based on underwriting requirements and guidelines. 6 This rider is not available for certificates issued with a base face amount of less than $25,000. On certificates where the insured s issue age is higher than 75 or issued as sub-standard, Terminal illness, where available, will be the only eligible illness issued. 7 The payment, due to diagnosis of an eligible illness, may be less than the acceleration amount which may be subject to a fee, an actuarial discount amount and other applicable deductions. Payment will decrease certificate values and benefits. Protection for the important things in your life Tax-free death benefit Your death benefit is generally free of income taxes and probate delays, 1,3 so your family can maintain their standard of living in the event of your death. Applying is simple Applying for SMART Universal Life is simple and convenient. Complete an easy-to-understand application and you could be eligible for life insurance coverage. 5 Remember, in most cases, the younger and healthier you are, the lower your insurance premiums. Helping to provide for both today s peace of mind and tomorrow s possibilities, SMART Universal Life gives you many good reasons to apply. Ask your insurance representative how Foresters SMART Universal Life can work for you.

18 Foresters flexible protection SMART Universal Life Insurance Real benefits when you need them As a Foresters TM member, you get so much more than a life insurance product. You can take advantage of opportunities to develop your personal skills, attend fun family events and make a difference in your community. You may also be eligible for other valuable member benefits that enhance your insurance coverage. Foresters SMART Universal Life offers you long-term growth potential and considerable flexibility to adjust coverage as your needs change. If you become a member, you can enjoy a surprising package of complimentary benefits 1 that can help you and your family do more. Your life insurance representative will use this worksheet to show you how life insurance coverage and Foresters TM benefits of membership can combine to offer real benefits in times of need. Although your situation may be quite different, let s look at an example of how member benefits can supplement the insurance coverage you re purchasing. In this example, if a married couple with three children were to die when their children were ages 1, 3 and 5, their beneficiaries would receive their life insurance benefit. In addition: Foresters Orphan Scholarships could provide up to $72,000 in scholarships ($6,000 for each child for 4 years) Foresters Orphan benefits could pay up to $486,000 toward the care of the children ($900 a month for each child until that child turns 18) That s an additional $558,000 in benefits just for being a Foresters member! Together, your Foresters life insurance and benefits of membership can help you and your family get more out of life the protection you and your family need and a unique package of benefits you can enjoy. Visit us to learn more about your membership at foresters.com. 1 Foresters member benefits are non-contractual, subject to eligibility requirements and limitations and may be changed or cancelled without notice. Third parties administer Legal Link, Everyday Money and Foresters Competitive Scholarships. Foresters is the trade name and a trademark of The Independent Order of Foresters, a fraternal benefit society, 789 Don Mills Road, Toronto, Canada M3C 1T9; its subsidiaries are licensed to use this mark. The Independent Order of Foresters 789 Don Mills Road Toronto, Canada M3C 1T9 U.S. Mailing Address: PO Box 179 Buffalo, NY foresters.com

19 Prepared for: Plus: Complimentary Member Benefits 1 Name Date Prepared by Contact info Base coverage Foresters SMART Universal life insurance Family Health Benefit Rider Provides hospital and ambulance benefits up to a maximum of $650 per person to a limit of $5,000 per family, if injured as a result of: hurricane, tsunami, earthquake, volcanic eruption, being struck by lightning, tornado, typhoon. Common Carrier Accidental Death Rider Pays up to double the death benefit if the insured dies within 90 days of an accidental injury that occurred on a common carrier while riding as a fare-paying passenger, to a maximum of $300,000. Accelerated Death Benefit Rider 4 Provides an option to accelerate a portion of the eligible death benefit and receive a payment 5. Subject to eligibility criteria and state variations, this rider can be issued with one or more of the eligible illnesses - Critical Illness, Chronic Illness or Terminal Illness. Benefit Amount Planned Premium For you and your family Terminal Illness loan 2 An interest-free loan of up to 75% of the net face amount of the Foresters life insurance coverage on a terminally ill insured person. Competitive Scholarships 3 Available every year to eligible members and their family who can qualify for up to $8,000 in support. Orphan Scholarships Per year per child, renewable for up to 4 years of full-time postsecondary education upon the death of: both parents, up to $6,000; a single parent, up to $3,000; one of two parents, up to $1,500. Orphan benefits $900 per month per orphan child under age 18, provided to the legal guardian upon the death of both parents. Family events Spend time with your family at sporting events, theme parks and more, at little to no cost. Inspiring community activities Make a meaningful and lasting impact in your community. Support family wellbeing through our national partnerships. Everyday Money & Legal Link Toll-free access to two services. Accredited counsellors can help with every day money issues, such as budgets and debt. Access complimentary or discounted legal services in many areas. Benefit Amount $250,000 maximum $8,000 maximum per child $24,000 maximum per child $194,400 maximum per child Invaluable Invaluable Invaluable Planned Premium Complimentary for members Complimentary for members Complimentary for members Complimentary for members Complimentary for members (or nominal fee) Complimentary for members Complimentary for members Optional benefits Disability Income Rider (Accident Only)* Provides a monthly income for up to 2 years (for 2 separate incidents) if the insured becomes totally disabled within 180 days of the injury (90-day elimination period). Children s Term Rider Provides up to $25,000 of level term life insurance for each eligible child of the insured, whether born, adopted or under legal guardianship, or a stepchild of the insured. Accidental Death Rider Provides a maximum benefit of $300,000 in case of death caused by an accidental bodily injury. Waiver of Monthly Deductions Rider Waives the monthly deduction as long as the insured is totally disabled and unable to work. If disability begins before age 60, waiver continues even after the rider expires, if total disability is continuous. Guaranteed Purchase Option Rider Offers an opportunity to increase your face amount by up to $30,000 on each option date, without additional evidence of insurability. Total Planned Premium *Premium subject to increase $ /month Waives monthly deduction This worksheet is provided for information purposes only; it does not form part of the Foresters SMART Universal Life insurance contract and is not intended to amend, alter, or change any of the terms and conditions of the contract. Refer to the Foresters SMART Universal Life contract for your state for these terms and conditions. Contracts are issued by The Independent Order of Foresters, a fraternal benefit society. Foresters SMART Universal Life and its riders may not be available or approved in all states and state variations may apply. Foresters SMART Universal Life and its riders are filed under the form numbers listed below, where XX represents either US or your state s postal abbreviation, as applicable. Foresters SMART Universal Life: ICC09-UL-SMART-US01 or UL-SMART-XX or UL-SMART-XX Waiver of Monthly Deductions Rider: ICC09-UL-WMD-US01 or UL-WMD-XX Accidental Death Rider: UL-ADR-XX Children s Term Rider: UL-CTR-XX Disability Income Rider (Accident Only): UL-DIR-XX Family Health Benefit Rider: UL-FHB-XX Common Carrier Accidental Death Rider: UL-CCADR-XX Guaranteed Purchase Option Rider: UL-GPO-XX Accelerated Death Benefit Rider (for Chronic, Critical and Terminal Illness): ICC14-UL-ABRCHCRTI-US01 or UL-ABRCHCRTI-XX Accelerated Death Benefit Rider (for Critical and Terminal Illness): ICC14-UL-ABRCRTI-US01 or UL-ABRCRTI-XX ; Accelerated Death Benefit Rider (for Terminal Illness): ICC14-UL-ABRTI-US01 or UL-ABRTI-XX Not available as a member benefit in the states of Illinois or New York or on Accidental Death products. 3 This program is administered by International Scholarship and Tuition Services, Inc. 4 This rider is not available for certificates issued with a base face amount of less than $25,000. On certificates where the insured s issue age is higher than 75 or issued as sub-standard, Terminal illness, where available, will be the only eligible illness issued. 5 The payment, due to diagnosis of an eligible illness, may be less than the acceleration amount which may be subject to a fee, an actuarial discount and other applicable deductions. Payments will decrease certificate values and benefits US (11/14)

20 Foresters Budget Review Where s the money? Many of us have little spending habits that just add up. Take a close look at some of your spending and then ask yourself what you can reduce and what you can do without. Eliminating small expenditures is a minor adjustment for many of us, but it can actually help us save important dollars that can be directed toward valuable savings and protection vehicles. For example, a 40-year-old male, preferred non-smoker, who eliminates $2.71/day ($81.25/month) that he would have spent on coffees and snacks, can use the freed-up cash to buy Foresters life insurance coverage worth more than $100,000. How much can you save? 1. Track your spending on a typical day if you can do it over several days, it might give you a better idea of where your money goes. 2. Decide where you can trim, if that s right for you. 3. Commit to setting that money aside by automatically having it taken out of your account each month, and put it into a life insurance product customized to your unique needs. Spent on Sunday Day 1 Monday Day 2 Tuesday Day 3 Wednesday Day 4 Thursday Day 5 Friday Day 6 Saturday Day 7 Weekly total Coffee Lunch Snacks Tobacco Newspapers Dining Out Alcohol Movies Daily total I will commit to save $ /day or $ /month. Signed Foresters is the trade name and a trademark of The Independent Order of Foresters, 789 Don Mills Road, Toronto, Canada M3C 1T9; its subsidiaries are licensed to use this mark US (01/12)

21 Foresters Lifestyle Protection needs With Permanent Continuation Client Details Client Name Date of Birth (MM/DD/YYYY) / / Sex Insurance Class Male Lifestyle protection needs A. Net annual income after tax: $ B. Percentage to insure: % C. Number of years to continue income: Yrs D. Assumed inflation rate (%) % E. Income protection required (A x B) x (Value from Table 1) F. Mortgage balance: $ G. Percentage to insure: % H. Mortgage protection required: (F x G) I. Total Protection required: (E + H) $ $ $ Female Table 1 Future value income factors Years to Protect Income Assumed Inflation Rate 2% 3% 4% 5% 6% J. Total base required: (I x 0.5) $ Foresters is the trade name and a trademark of The Independent Order of Foresters, 789 Don Mills Road, Toronto, Canada M3C 1T9; its subsidiaries are licensed to use this mark US (01/12)

22 Foresters Permanent Protection needs With Lifestyle Enhancement Client Details Client Name Date of Birth (MM/DD/YYYY) / / Sex Insurance Class Male Permanent needs Real estate A. Home $ B. Other $ Personal Property C. Home $ D. Jewelry $ E. Household items $ Investments F. Retirement accounts $ G. Stocks $ H. Mutual funds $ I. Bonds $ J. CV Life Insurance $ Cash K. Checking $ L. Savings $ M. Other $ Existing coverage N. Total of all permanent insurance $ Current Assets O. Total today (Sum of A thru M less N) $ Projected Federal Estate tax for years 2012 on... Female Additional Savings P. Annual amount $ Q. Number of years Yrs R. Projected growth rate %S S. Projection period (in years) Yrs T. Future Value of today s assets $ (O x (1+R)^S) Where ^ is an exponent sign U. Future value of additional savings (P x Value from Table 1) x (1+R)^(S-Q) Where ^ is an exponent sign $ V. Total projected estate $ W. Total projected estate taxes* (See Table 2) $ X. Percentage estate tax liability to insure %S Y. Permanent protection need (W x X) $ Table 1 Future value income factors Years to Protect Income Assumed Inflation Rate 2% 3% 4% 5% 6% Table 2 Projected Estate Tax Schedule From To Tax + % On excess over $0 $10,000 $0 18 $0 10,001 20,000 1, ,000 20,001, 40,000 3, ,000 40,001 60,000 8, ,000 60,001 80,000 13, ,000 80, ,000 18, , , ,000 23, , , ,000 38, , , ,000 70, , , , , , ,001 1,000, , ,000 1,000,001 1,250, , ,000,000 1,250,001 1,500, , ,250,000 1,500,001 2,000, , ,500,000 2,000,001 2,500, , ,000,000 2,500,001 3,000,000 1,025, ,500,000 3,000,001 1,290, ,000,000 *State inheritance or death taxes may also apply Foresters is the trade name and a trademark of The Independent Order of Foresters, 789 Don Mills Road, Toronto, Canada M3C 1T9; its subsidiaries are licensed to use this mark US (01/12)

23 Foresters our shared strength A careful guardian of our members interests Foresters maintains a strong financial position, with assets of $11.9 billion CDN and a surplus of $1.9 billion CDN 1,2. The independent rating agency A.M. Best Company has given Foresters financial outlook an A (Excellent) 3 rating for excellent balance sheet strength and operating performance for 15 consecutive years. We focus on strong operational performance, careful management and a conservative investment strategy. Our financial strength has enabled us to weather even the worst business and market conditions. Like all life insurance providers, Foresters is monitored by federal and state regulators, who can take action when there are solvency concerns. As well, in the US, the National Association of Insurance Commissioners (NAIC)Risk-Based Capital (RBC) guidelines limit the amount of risk insurers can take and require insurers to maintain enough capital to meet their obligations to policyholders. Foresters RBC ratio exceeds the NAIC guidelines. Where solvency becomes an issue, State Guaranty Associations offer policyholders some protection. These associations were created by state legislation and funded by assessments made against participating insurers. Foresters, as a membership-based life insurance organization, is not a member of State Guaranty Associations, and has no obligation to pay assessments to deal with the financial situations of other insurers. Instead, Foresters can continue to invest to fund Foresters liabilities, provide benefits of membership to our members and help the communities in which they live. Without coverage from State Guaranty Associations, fraternal benefit society members may be subject to a special assessment. However, Foresters has assessed members only twice, the last time almost 100 years ago when members supported a special assessment to maintain a positive balance sheet during the First World War. Foresters is an international financial services provider, with members in the US, Canada and the UK. Our 140-year heritage as a fraternal benefit society a member-based life insurance provider for everyday families is the foundation of our guiding principle: enriching the lives of our members, their families and the communities they live in. We re not a faceless institution. We stand for something more. Foresters is an active part of your life, at every stage. Assets $11.9 billion 1 Surplus $1.9 billion 1,2 A Excellent rating

24 We share our financial success with our members Foresters has a history of sharing its financial success. In 2014, Foresters invested more than $20.4-million in member benefits that support our members and their communities. Since 2006, Foresters has invested over $10 million with KaBOOM!, the national non-profit dedicated to saving play. By the end of 2014, Foresters and KaBOOM! had built over 100 new playgrounds across the US and Canada. Imagine, over a 15-year lifespan, these playgrounds will give more than 4 million children and their families an opportunity to spend quality time together. Foresters believes in strong, supportive families. That s why we are pleased to become an official partner of Ronald McDonald House Charities (RMHC ). Beyond financial contributions, Foresters supports RMHC through volunteerism. Over the past four years, Foresters has organized more than 100 activities at local Ronald McDonald Houses, providing families with a sense of fun and comfort during an extremely stressful time. In addition, Foresters members received a $25-million special dividend in 2007 in the form of waiving premiums and/or providing additional death benefits on some older certificates. In 2002, Foresters waived the requirement for members to pay membership fees a value of approximately $40-million to members. And, in 1973, to celebrate Foresters 100th anniversary, the annual dividend was increased by 50% and paid in cash value. 1 Financial results as at December 31, This surplus represents excess funds above the amount required as legal reserves for insurance and annuity certificates in force and provides additional assurances to our members for our long term financial strength. 3 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. A.M. Best assigns ratings from A++ to F, A++ and A+ being superior ratings and A and A- being excellent ratings. In assigning Foresters rating on July 1, 2015, A.M. Best stated that the rating outlook is stable, which means it is unlikely to change in the near future. See ambest.com for our latest rating. Ronald McDonald House Charities, RMHC, Ronald McDonald House, Ronald McDonald Family Room, and Ronald McDonald Care Mobile are all registered trademarks of McDonald s Corporation or its affiliates and are used with permission. Foresters TM is the trade name and trademark of The Independent Order of Foresters, Toronto, Canada M3C 1T9; its subsidiaries are licensed to use this mark US (07/15) $4.8 million was granted through Foresters Community Grants to help members organize volunteer activities and fun family events Invested over $30 million in delivering member benefits and community activities Awarded $1.8 million in funding for more than 1,100 Foresters Competitive Scholarships 36,140 Foresters volunteers supported local charities through 771 community activities