Foresters’ FamilyLife Quit Smoking Incentive Plan

Posted on January 8, 2014 and updated January 14, 2014 in Canadian Life Insurance Companies, Foresters Life, Insurance Types, Life Insurance Canada News, Permanent Insurance 3 min read
guaranteed issue life insurance smoker
If you’re a smoker that’s trying
to quit, Foresters will give you
non-smoker rates.

Though smoking rates are on the decline, there are still 4.9 million smokers in Canada, according to research funded by the Canadian Cancer Society.

Foresters Canada designed its FamilyLife product to be affordable for the Canadian family, but they know that the typically added cost for smokers can be a deterrent to purchasing life insurance. They also know that most smokers just need a little bit of an incentive to quit the habit.

This is why they’ve attached a Quit Smoking Incentive to their FamilyLife participating whole life insurance plan, which basically allows smokers to pay non-smoker premium rates for the first two years they hold the policy. 

“The most revolutionary part of the Quit Smoking Incentive is that if the smoking policyholder meets Foresters’ definition of a non-smoker after their second year as owner of the policy and is able to produce any evidence requested to that effect, they will continue paying those non-smoker rates after the second year,” says Stephen Maloney, Assistant Vice-President of Marketing and Communications at Foresters Canada. 

It should be noted, though, that if this evidence can’t be produced, or the person continues smoking, those non-smoking rates will disappear and revert to smoker rates after the second year of owning the policy.

Let’s see the incentive in action as part of the FamilyLife whole life insurance plan.

John is a 42-year-old smoker applying for $200,000 of 20-pay Familylife coverage. Using the Protector Option, his base coverage would be $105,044 and his enhanced protection would be $94,956. His annual premium for the first two years is $3,078.50 and then $3,863.18 thereafter. If John does not quit smoking, he has still saved $784.68 each year for two years. This benefit over the course of 20 years at an assumed interest rate of 4% is $3,372.53. If John takes this incentive plan as his motivation to quit smoking, he would continue to pay only $3,078.50 annually, and the value of this benefit over 20 years may be as much as $24,234.79 at a 4% interest rate.

“That’s a significant savings, just for quitting smoking,” says Maloney. “We are not aware of any other life insurance providers who are offering this kind of program in Canada, but depending on feedback from our members, we would explore the opportunity to introduce this benefit to more products.”

However, he was quick to point out that the Stop Smoking Incentive Plan isn’t the only benefit to buying life insurance with Foresters. “When you purchase life insurance from Foresters, you become part of a member-based insurance provider that champions the well-being of families and communities,” he says. ”Foresters doesn’t just provide life insurance; we deliver a whole range of member benefits, many of which are complimentary.”  

For more information on Foresters’ Quit Smoking Incentive Program, call us at 1-866-899-4849. For more permanent life insurance options, visit our Whole Life Insurance Quote Page.

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Maggie Daily
Maggie Daily

For me, the best device to quite smoking is the eStick.

LSM Insurance
LSM Insurance

Thanks for your feedback Maggie. This would still be considered tobacco use by most insurers.