Foresters’ Familylife Participating Whole Life Insurance

Illustration  Ted Bongiovanni
Foresters’ Family Life is
an affordable whole life
insurance solution for families.
 Photo Ted Bongiovanni

Foresters Life Insurance Company has just launched a new participating whole life insurance product called FamilylifeThe policy is meant to provide families with cost-effective permanent insurance that’s specifically tailored to their budget and unique protection needs.

“Familylife comes with a number of key benefits that are not included with other participating whole life policies in Canada,” says Natalia Witkowsky, assistant vice-president of Product Management at Foresters Canada.

Those benefits include built-in children’s term insurance coverage and a Guaranteed Insurability Benefit for juveniles at no additional cost. Both these benefits provide the option of buying more insurance as the kids and teens reach adulthood. Familylife also offers The Quit Smoking Incentive Program, which gives smokers the opportunity to pay non-smoker rates in the first two years of their policy as an incentive to quit smoking. If, by the end of the second year, you have quit smoking for at least a year, those non-smoker rates will continue. 

In addition, the Familylife Participating Whole Life product comes with The Advance Medical Expert Opinion Program. Foresters is the only company in Canada that offers this type of program on a life insurance product. Like Best Doctors, The Advance Medical Expert Opinion Program provides an expert medical opinion when you need one and it is built-in to the cost of the product as well.

“A lot of other insurance companies offer a program like Best Doctors on their critical illness policies, but Best Doctors only applies to the insured,” says Witkowsky. “With our Advanced Medical Expert Opinion Program, the service is also available to members of the insured’s immediate family.”

Participating whole life policies offer a growing cash value based on the dividends that may be declared by the insurance company. These dividends come from the par fund, which is a pool of money that all the people who bought participating whole life policies get to share in. Universal life, on the other hand, features self-directed investments that are linked to recognized market indices. Participating whole life is more appealing to people who don’t feel comfortable directing their own investments. “The benefit of participating whole life is that you have professionals managing the participating fund,” says Witkowsky.

Whole life insurance sales are on the rise in Canada because of the low interest rate environment and the less than stellar economic climate. Plus, dramatic increases in the level cost of insurance in recent years have caused Universal Life Insurance plans to fall out of fashion. Witkowsky confirms, “People are more into guarantees these days.”

“Clients are looking for a little more assurance, a little more security and some guarantees,” she continues. “Those are being withdrawn from Universal Life because of the low interest rate environment we’re living in.”

However, only a few insurance companies are able to offer a participating whole life plan. “In this economic environment it’s very hard to start up a par fund if you don’t already have one,” explains Witkowsky.

“The companies that are offering par are the companies that have been offering par for a number of years and have already persevered through hard times like these. But, if you’re an insurance company that has never had a par fund, trying to start a par fund in an environment where bond rates are below 5 per cent is really not going to help you out.”

The Familylife Participating Whole Life Insurance Plan comes in a life-pay and 20-pay variety, as far as paying premiums are concerned. Another thing that makes the plan appealing to families is its affordability.

“Relative to what’s out there, the premiums for this product are very cost-effective,” assures Witkowsky. “In a family market, where you have a lot of customers who are price-sensitive, this is the type of product that they would find attractive.”

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  • Boris
    May 28, 2013 at 1:02 pm

    Does Foresters still offer Term 100 insurance? Looking for $50,000

    • LSM Insurance
      May 28, 2013 at 2:19 pm

      Thanks Boris. Foresters does not have a Term 100. They have a Universal Life and Whole Life policy. LSM does work with other carriers who do offer Term 100 coverage. Regards,

  • LSM Insurance
    May 9, 2013 at 9:16 am

    Thanks Joelle.

    The premiums will depend on how long you have had the depression for, the type of depression and if it is well controlled.

    We will send you a separate email now.

  • Joelle
    May 9, 2013 at 8:20 am

    How much am is the premium for a 58 female non smoker. I have a history of depresssion but I recently reduced my medications. I would want quotes at 25,000 and $50,000 something i can leave my kids