Presents On Boarding · 2018-04-19 · current certificate year Current US variable loan rates...

New Producer Webinar

407325 US (09/16) For Producer Use Only

Presents

On Boarding

New Producer Webinar


Disclaimers

• This training module is not written for, and it cannot be used for, the purpose of avoiding penalties that may be imposed on a taxpayer. Neither Foresters FinancialTM nor its Representatives engage in rendering legal, business, estate tax, accounting or tax advice. The information in this training module is intended as a general overview. Please advise your clients to consult their individual tax or legal advisors regarding their specific situation. This report is not intended to provide advice regarding the sale or purchase of specific investments, financial or insurance products. Treasury Department Circular 230.

• All information is intended to be general in nature. All Foresters fraternal requirements need to be considered including the requirement that proceeds must benefit the Foresters member's dependants.

• The information contained in this presentation is for information purposes only. There are other tools available 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.

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


Contents

• Foresters Products

• Foresters Difference

• Support


Foresters Product Portfolio


Product Portfolio

• Whole Life Products

• PlanRight

• Advantage Plus

• Your Legacy

• Universal Life

• Smart UL

• Term Products

• Lifefirst Level Term

• Prepared Accidental Death Term


PlanRight


PlanRight

A whole life product designed to provide for death benefits as a way to help people pay for the cost of their final expenses


PlanRight Whole Life

• U.S. population age 65 and over is expected to double in the next 25 years

• By 2030 almost one out of five Americans (some 72 million people) will be 65

years or older

• According to the National Funeral Directors Association, the average cost of a

funeral in 2012 was $8,343

Sources: http://www.cdc.gov/mmwr/preview/mmwrhtml/mm5206a2.htmSource: National Funeral Directors Association, 2013 Member General Price List Study


http://www.cdc.gov/mmwr/preview/mmwrhtml/mm5206a2.htm


• Quick Application Process – no medical exam, no blood profiles, no HOS

• Quick Underwriting – Producers will know medical eligibility prior to leaving client’s home

• Quick Issue - Quick Pay in your pocket

• Face amounts - from $2,000 to $35,000


PlanRight Whole Life – Benefits in 1st, 2nd and Later Years

• Level Death Benefit

(Based on 100% of the Face Amount*)

• Graded Death Benefit

(Based on greater of:

• Year 1:

• Year 2:

• Year 3:

30% of face amount; or ROP + 4.5% interest

70% of face amount; or ROP + 4.5% interest

100%*)

Issue Age (ALB) Face Amounts

50 - 80 yrs $2,000 - $35,000

81 - 85 yrs $2,000 - $15,000


50 - 80 yrs $2,000 - $20,000

81 - 85 yrs $2,000 - $10,000


50 - 80 yrs $2,000 - $15,000

81 - 85 yrs Not Available

• Modified Death Benefit

(Based on ROP+10% in years 1 and 2, 100% of the face amount from year 3+*)

*Applicable amount plus unearned premium minus certificate debt such as loans.

Subject to state availability and variations.


PlanRight Whole Life Accidental Death Provision

AvailabilityPlanRight Graded & Modified during the first two years the certificate is in effect

Benefit for Accidental Death

• Face amount in effect on date of death of insured, plus

• Unearned Premiums, minus• Debt

Accidental Death Definition

Death caused by an accidental bodily injury, directly and independently from all other causes

Accidental Death PeriodDeath occurs within 180 days of accidental bodily injury




• Premiums

• Age Last Birthday

• Rates for Males/Females and Non-Tobacco/Tobacco

• No Banding

• Commissionable Certificate Fee: $36

• Annual, Semi-annual, Quarterly and Monthly modes

• One application for all 3 plans


PlanRight Whole Life Riders

Built-In ProtectionCommon Carrier Accidental Death Benefit Rider

Extended Protection Accidental Death Rider (Level Plan Only)



PlanRight Whole Life Real-Time Underwriting

• Supported by Apptical

• Fast, reliable service

• Focus on the sale not the underwriting process

• Know the client’s medical eligibility before leaving the client’s home


PlanRight Whole Life Process

• Complete the application

• Call Apptical for Personal Health Interview (PHI)

• MIB and Prescription Checks will be performed on all applications

• Medical eligibility based on application and telephone interview results

• Submit the application


PlanRight Whole Life Process

In order for you to continue with the Point-of-Sale process for

PlanRight, all applications must be submitted to Foresters within 10

business days after a call has been placed with Apptical, regardless of

the outcome.



APPTICAL

1-866-844-9276

Monday-Friday: 8:30 am to Midnight ET

Saturday-Sunday: 10 am to 8 pm ET

Sales Support

1-866-466-7166 (option 1)

Monday-Friday: 8:30 am to 7:00 pm ET

Saturday-Sunday: Closed


Advantage Plus Whole Life



Advantage Plus Whole Life is a participating whole life product which will provide for lifetime death benefit protection (up to age 121),

guaranteed cash values and lifetime guaranteed premium*

*Exception-Disability income coverage



• Ages 30-50 looking for long term cash value growth

• Ages 50-70 looking for guaranteed premium* and a death benefit

• Middle Income Market

• Want lifetime life insurance protection (up to age 121)

• Want cash value accumulation potential

• Non-medical or medically underwritten plans




• Lifetime protection (to age 121)

• Guaranteed cash values

• Guaranteed lifetime premium*

(to age 100)

• Customized coverage with valuable

riders




• No medical exams (up to $400,000)

• Foresters relies on applicant's answers to health & lifestyle

questions to offer up to $400,000 in coverage

• No medical exam

• No blood

• No routine PHIs

• Simple application process

• Optional POS phone interview

• Medically underwritten coverage available



Non-Medically Underwritten Features

• No blood

• No HOS

• No APS

• Optional Decision Express phone

interview

• E-app Availability

• MIB

• Prescription History

Build Tables

5’6” 259 lbs

5’7” 265 lbs

5’8” 274 lbs

5’9” 281 lbs

5’10” 292 lbs

5’11” 298 lbs


Advantage Plus Whole LifeNon-Medically Underwritten Features

Insurance Classes

Juvenile TobaccoNon-Tobacco

Issue Ages & Face Amounts (age nearest)

0-15: $25,000 - $150,00016-55: $25,000 - $400,00056-75: $25,000 - $150,000

Underwriting Issued Standard up to and including Table 4

Decision Express Optional Point-of-Sale Underwriting Decisions



Medical Issue Ages and Face Amounts

Issue Ages (age nearest)

Minimum Face Amount

0-15 $150,001

16-70 $100,000

71-75 $50,000

76-85 $25,000

71-85 (preferred and preferred plus classes)

$100,000



Insurance Classes

Medically Underwritten Insurance Classes

JuvenilePreferred Plus Non-Tobacco Preferred Non-TobaccoNon-Tobacco Plus Non-Tobacco Tobacco Plus Tobacco



Premiums & Payment Options

Premium Modes

Monthly: $25.00 minimum (PAC only)

Quarterly: $75.00 minimum

Semi-Annually: $150.00 minimum

Annual: $300.00 minimum

Certificate Fee

(fully commissionable)

Monthly: $6.30

Quarterly: $18.72

Semi-Annual: $36.72

Annual: $72.00

Payment Options20 pay

Paid-up at 100



Loans & Dividends

Loans

(non-direct recognition)

Available up to cash surrender value at the end of thecurrent certificate year

Current US variable loan rates (currently 5.0%)*

Contractual Dividends

Paid-Up Additions (default)

On deposit with interest (minimum 3.5% guarantee)

Reduce Premiums

Paid in Cash

*Loan rates are variable. Loan rates current as of January 1, 2016.



Riders

Subject to state availability and variatio ns.

Standard Protection Benefits

Family Health Benefit Rider

Common Carrier Accidental Death Benefit Rider

Accelerated Death Benefit Rider

Living BenefitsDisability Income Rider (Accident Only)

Waiver of Premium Rider

Extended Protection

Children’s Term Rider

Accidental Death Rider

Guaranteed Insurability Rider

Additional Protection

10-Year Term Rider

20-Year Term Rider

Paid-up Additions Rider

Subject to state availability and variations.407325 US (01/17) For Producer Use Only

Your Legacy Whole Life


Foresters Your Legacy Whole Life

A non-medical single premium participating whole life insurance product which will provide for lifetime death benefit protection (up to

age 121) and guaranteed cash values



Target Market

• Retirees that want to allocate a portion of their assets to cover a multitude offinancial risks while leveraging the potential estate value of the asset

• Looking for simplicity: non-medical, single pay buys lifetime coverage with no future premiums

• Looking for cash value growth through dividends while having the upside of death benefit protection

• Want lifetime life insurance protection (up to age 121)

• Grandparents or parents looking to buy coverage on their grandchildren or children

– Provides lifetime coverage and protects against the unpredictable such as future uninsurability



Non-Medical Features

• No blood

• No HOS

• No APS (standard underwriting)

• Optional Decision Express phone

interview to a table 4 (standard

underwriting)

• MIB


Standard Build Tables

5’6” 259 lbs

5’7” 265 lbs

5’8” 274 lbs

5’9” 281 lbs

5’10” 292 lbs

5’11” 298 lbs




Insurance Classes

Juvenile (issue ages 0-15)Non-Tobacco (issue ages 16-85) Tobacco (issue ages 16-85) Substandard (issue ages 16-80)

Issue Ages 0-85 (age nearest) & Minimum Single Premium Amounts

0-15: $1,50016-29: $5,00030-85: $10,000

Maximum Single Premium 0-85 $500,000

Maximum Net Amount At Risk

Issue Age 0 - 15: $150,000Issue Age 16 - 55: $400,000Issue Age 56 - 75: $175,000Issue Age 76 - 85: $150,000




Underwriting Classifications

Standard underwriting

Tables 1-4 (+25% to +100) with the following classes:• Juvenile (issue ages 0-15)• Non-Tobacco (issue ages 16-85)• Tobacco (issue ages 16-85)

Ratings

Substandard underwriting is available on issue ages 16 to 80. Rating classes are tables 5 to 8(+125 to +200) and will be determined by Underwriting.



Loans & Dividend Options

Loans

(non-direct recognition)

Available up to cash surrender value at the end of the current certificate year

Current US variable loan rates (currently 5.0%)*

Dividends

Paid-up Additions (default)

On deposit with interest (minimum 3% guarantee)

Paid in Cash

*Loan rates are variable. Loan rates current as of March 20th, 2014.



Features

Protection BenefitsFamily Health Benefit Rider


Living Benefits Accelerated Death Benefit Rider

Subject to state availability. 407325 US (01/17) For Producer Use Only

Smart Universal Life



A flexible universal life product that offers lifetime protection, non-medical and medical underwriting and potential for cash value

accumulation



Target Market

• Ages 30-50

• Middle Income Market

• Want lifetime life insurance protection

• Want cash value accumulation potential

• Want an easy application process with non-medical



• Lifetime protection (to age 121)

• Competitive Rates

• Customized coverage with valuable

riders

• Flexible coverage





• Foresters relies on applicants’ answers to health & lifestyle questions to offer up to

$400,000 in coverage

• No medical exam

• No blood

• No routine PHIs





Non-Medical Features• No blood

• No HOS

• No APS



• MIB


Build Tables

5’6” 259 lbs

5’7” 265 lbs

5’8” 274 lbs

5’9” 281 lbs

5’10” 292 lbs

5’11” 298 lbs


Foresters Smart Universal Life

Non-Medical Issue Ages and Face Amounts

Issue Ages(age nearest )

Minimum FaceAmount

Maximum FaceAmount

0-15 $10,000 $150,000

16-55 $25,000 $400,000

56-75 $25,000 $150,000


Foresters Smart Universal Life Insurance

Medical Issue Ages and Face Amounts

Issue Ages (age nearest)

Minimum Face Amount

0-15 $150,001

16-70 $100,000

71-75 $50,000

76-85 $25,000

71-85 (preferred and preferred plus classes)

$100,000



Insurance Classes

Non-Medically Underwritten Insurance Classes

Medically Underwritten Insurance Classes

Juvenile Non-Tobacco Tobacco

JuvenilePreferred Plus Non-Tobacco Preferred Non-TobaccoNon-Tobacco Plus Non-Tobacco Tobacco Plus Tobacco



Premiums

Minimum Modal Premium Premium Mode

$25.00 Monthly

$75.00 Quarterly

$150.00 Semi-Annually

$300.00 Annually



Surrender charges Decreasing charge for 15 years

Premium expense charge 6% of premiums paid in the first 20 years

Monthly administration deduction $12



Definition of Life InsuranceTests

Guideline Premium Test (GPT)

Cash Value Accumulation Test (CVAT)

Death BenefitsLevel

Increasing

Grace Period61 days from the due date of the monthly deduction in default

ReinstatementsCan be reinstated within 3 years of the date of lapse,subject to conditions

UnderwritingIssued Standard up to and including Table 4 for Non-Medical

Decision ExpressOptional Point-of-Sale underwriting decisions for Non-Medical



Riders





Living Benefits

Disability Income Rider (Accident Only)

Waiver of Monthly Deductions Rider

Extended Protection

Children’s Term Rider

Accidental Death Benefit Rider

Guaranteed Purchase Option Rider



Lifefirst Term Life


Lifefirst Term

A term life product that offers level premiums*, level death benefits, non-medical underwriting and conversion privileges

*For the initial term, exception critical illness and disability income riders


Lifefirst Term

• Choice of 10 , 20, 25 and 30 year term

• Level premiums*

• Level death benefits

• Customized coverage with valuable riders

• Conversion privileges

*For the initial term, exception critical illness and disability income riders


Lifefirst Term


• Foresters relies on applicant's answers to health & lifestyle questions to offer

up to $400,000 in coverage

• No medical exam

• No blood

• No routine PHIs


– Optional Decision Express POS phone interview

• Medically underwritten coverage available


Lifefirst Term


• No blood

• No HOS

• No APS

• Optional Decision Express POS phone

interview


• MIB


Build Tables

5’6” 259 lbs

5’7” 265 lbs

5’8” 274 lbs

5’9” 281 lbs

5’10” 292 lbs

5’11” 298 lbs


Lifefirst Term


Term Period

20 year (ages 18-65, 60 for tobacco)



Face Amount

(age nearest)

Issue Age 18-55: $50,000 to $400,000

Issue Age 56+: $50,000 to $150,000

Guaranteed Level Premiums Annually increasing after initial term to age 100

Certificate Fee Commissionable on Non-Medical

ConvertibleConvertible up to the earlier of insured’s age 65 or 5 years before expiration of the initial term

Underwriting Issued standard up to and including table 4


Lifefirst Term

Medically Underwritten Features

Term Periods

10 year (ages 18-80)




Face Amount (age nearest)Issue Age 18-55: $100,000

Issue Age 56+: $100,000

BandingBand 1: up to $999,999

Band 2: $1,000,000+

Issued Non-Tobacco ClassesStandard, Standard Plus, Preferred, Preferred Plus

Issued Tobacco Classes Standard, Standard Plus

ConvertibleConvertible up to the earlier of insured’s age 65 or 5 years before expiration of term


Lifefirst Term Riders





Living Benefits

Critical Illness Rider (Accelerated Death Benefit)

Disability Income Rider(Accident Only & Accident and Sickness)

Waiver of Premium Rider

Extended ProtectionChildren’s Term Rider (convertible)

Accidental Death Rider

Subject to state availability and variations


Lifefirst Term


Prepared Accidental Death

Term


Prepared Accidental Death Term

An accidental death term product that offers level premiums, level death benefits, non-medical underwriting and return of premium



• Accidents are the 4th leading cause of death in the United States

• Accidental death term insurance is a low cost way to protect loved ones should an accident strike

Source: “Deaths: Final Data for 2013”, National Vital Statistics Reports, Centers for Disease Control and Prevention,U.S. Department of Health and Human Services, Feb 16, 2016.



Term PeriodExpires on certificate anniversary at which the insured turns age 75

Issue Ages (age last) and

Face AmountsIssue Ages 18-60: $50,000 to $300,000

Death BenefitPaid to beneficiary if insured dies within180 days from an accidental bodily injury.

UnderwritingNon-medical, no PHI or Prescription History checks

Certificate Fee (commissionable)

Monthly: $5.50

Quarterly: $16.50

Semi-Annual: $32.00

Annual: $60.00



Premiums Payable to age 75

Minimum Premiums

$10/month$30/quarterly$60 semi-annually$120 annually

Guaranteed Level Premiums

Prepared base premiums guaranteed not tochange to age 75

Disability Income rider premiums subject to change

Non-cancellablePrepared is non-cancellable provided client pays premiums on time



Living Benefit Riders

Disability Income Rider (Accident Only)

Waiver of Premium Rider (Accident Only)

Return of Premium Rider




Fallback Solution for Lifefirst Level Term

• Have client fill out “Authorization to Review & Transfer Information” form

• If Lifefirst application issued, Lifefirst coverage is in effect

• Lifefirst application declined, producer receives

• Notification from underwriting about decline

• If client likely eligible for Prepared, a mailing package which includes:

• Instructions on how to proceed with fallback

• Partially pre-filled Prepared application

• Client’s cover letter if mailing application to client



Fallback Solution for Lifefirst Level Term

• If proceeding with fallback, Producer can either

• Visit client to complete pre-filled Prepared application with client face-to-

face

Or

• Complete Prepared application with client by phone and mail to client for

signature (option is not available in West Virginia or for cases where initial

premium is to be paid by check)


Foresters Difference


Foresters Financial Strength

• Strong financial position

• Assets of $13.7 billion Canadian

• Surplus of $2.3 billion Canadian

Financial results as at December 31, 2015.


How are Fraternal Benefit Societies different?

• Our customers are our members and apply

for membership in the application for

insurance

• Share a common bond

• Non-Denominational

• Fraternal Concept: people helping people

Not subject to federal income tax: Foresters

instead invests its tax savings for the benefit of

our members and their communities

Foresters Difference


KaBOOM!

• Partnership with KaBOOM!

• Members, employees and producers

volunteer along with community partners to

build a playground in just one day


2017 Playground Builds

Atlanta, GA Seattle, WA

Cincinnati, OH Chicago, IL

Orange County, CA Dallas, TX

Oklahoma City, OK Phoenix, AZ

Orlando, FL


Ronald McDonald House Charities

• Over the past decade, Foresters members

have supported over 28,000 RMHC

families by organizing over 635 activities

at local Ronald McDonald Houses® across

North America

• Activities include sponsoring “Cookies With

Care” and family activity nights

Ronald McDonald House is a registered trademark of McDonald’s Corporation or its affiliates and is used with permission.


Foresters Prepared with Care

• Foresters holds a fundamental belief in helping families plan ahead and prepare for

the unexpected, while making a difference along the way.

• Being prepared for life’s unexpected events is important to well-being - emergency

preparedness information and supplies are one way that families and communities

can become better prepared and more resilient in the face of emergencies and

disasters.

• Foresters cares about the well-being of families and the communities where they

live. We’ve partnered with the American Red Cross TM to deliver Foresters Prepared

with Care, a program that will provide valuable preparedness training and

emergency kits to families in communities across America.


Emergency Assistance Grants• Short-term, temporary financial

assistance

• For Members affected by significant

personal hardship, disaster or large-scale

emergency

• One time, per disaster, payment

• 800-828-1540

• 8:00 am – 4:00 pm Eastern, M-F

• [email protected]

2016 Emergency

Assistance Funding

Flooding in Louisiana August

Tornadoes in Indiana

August

Flooding due to Hurricane Matthew

October

Wildfires in Tennessee December


mailto:[email protected]

Member Benefits

Benefits available to all eligible insureds, as Foresters members:

• Competitive Scholarships

• Terminal Illness Loan

• Orphan Benefits

• Everyday Money

• Legal Link

• Community Granting Program

Foresters Financial member benefits are non-contractual, subject to benefit specific eligibility requirements, definitions and limitations and may be changed or cancelled without notice. Third parties administer Legal Link, Everyday Money and Foresters Competitive Scholarships.


Competitive Scholarships

• Up to 250 tuition scholarships

offered annually

• Each scholarship worth up to $8,000

Foresters Financial member benefits are non-contractual, subject to

benefit specific eligibility requirements, definitions and limitations and may

be changed or cancelled without notice. Third parties administer Legal

Link, Everyday Money and Foresters Competitive Scholarships.


Terminal Illness Loan

• Terminal illness definition: Reasonable certainty of death within one year

as defined by a legally qualified physician who can provide medical proof

satisfactory to Foresters

• Borrow up to 75% of the net face amount of the Member’s Foresters life

insurance certificate to a maximum of $250,000.

• No interest, set-up fees or rider charges

• Not available in NY or IL. Not available on Prepared Accidental Death

Certificates



Orphan Benefit

• $900 per month per child paid to the legal guardian of the orphaned children of a Foresters Member, up to age 18

• Both parents alive at time of application

• Both parents pass away

• Benefit payment starts approximately one month after death benefit proceeds paid

• Paid in addition to any death benefits



Orphan Scholarship

• Death of one parent - $1,500/year

• Death of a single parent - $3,000/year

• Death of both parents - $6,000/year

• Renewable for up to 4 years

• If the child becomes orphaned at age 18 or younger, the program must

begin in the calendar year in which the child’s high school education is

completed.



Everyday Money

• Toll-free and confidential phone-

based financial helpline

• Accredited financial counselors

• Answer questions about everyday

money management

1-800-444-3043

7:00 am – 9:00 pm EST M-F

8:00 am – 12:00 pm EST on Saturday



Legal Link• Complimentary and discounted legal services

including a free simple will

• Discounted legal services including simple divorce, name change, incorporation and additional legal items

•Access to Legal Club of America discounts

1-800-444-3043

8:00 am – 8:00 pm EST M-F

In the US, Foresters Legal Link benefit is provided by Legal Club of America®, which is a registered trade name of Saturday Holdings Inc. The terms and conditions of Legal Link are those of Legal Club of America’s® Family Legal Plan.



Foresters Community Grants

Community Involvement (CI) grants

• CI grants provide members with the funds to independently

organize volunteer activities that contribute to family well-being

such as cleaning up a park, or assembling hygiene kits for the

homeless or gift packs for disadvantaged children.

Member Involvement (MI) grants

• MI grants provide members with the funds to create fun family

activities such as a day at an amusement park or sporting event,

or an evening at the movies.



Member Benefits For Helping Generations

Suppose two parents with three small children

(turning ages 1, 3,and 5) pass away

• Foresters could pay death benefits

• Foresters could also pay the Orphan Benefit to

the legal guardian of the orphaned children

Member Benefit Benefit Amount

Orphan Benefits Up to $486,000

Orphan Scholarship

Up to $72,000

Total Benefits Up to $558,000



Member Benefit Resources


Foresters

• Foresters Financial™ is a leading international life insurance provider

that is member-based, family-focused and community-spirited

• For 140 years we have been true to our purpose – to support the well-

being of families through quality life insurance, unique member

benefits and inspiring community activities

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.


Foresters Financial Strength

• The Independent Order of Foresters has received an "A" (Excellent) rating from

A.M. Best for 16 straight years.

• The A.M. Best rating assigned on August 18, 2016 reflects The Independent Order

of Foresters overall strength and claims-paying ability but does not apply to the

performance of investment products. 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. See ambest.com for our latest

rating.


Support


Support

Webinars

Advanced Planning

Products

Member Benefits

Underwriting


Support

Risk Assessments

Monday – Friday

8:30 am – 7:30 pm EST

866-466-7166


Support

Sales Support

Monday - Friday

8:30 AM – 7:00 PM EST

866-466-7166 Option 1


New ProducerWebinar

866 466 7166 option [email protected]


mailto:[email protected]

Presents On Boarding · 2018-04-19 · current certificate year Current US variable loan rates...

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Transcript of Presents On Boarding · 2018-04-19 · current certificate year Current US variable loan rates...