Foresters Strong Foundation - NAA Rep Foundation... · 2007. 2. 3. · Foresters Strong Foundation Foresters Strong Foundation level term life insurance to age 95 is designed with

Foresters Strong Foundation

Producers Guide

For producer use onlyThis document is intended for producer use only and shouldnot be disclosed to the public. The information containedin this guide is general in nature and is subject to the appropriate certificate and rider wording.

Term insurance with Simplified UnderwritingProduct and riders may not be available in all states.


2For Internal Use Only

State variations and restrictions may apply to the various features and benefits outlined in this document850004 US (08/05)

3


For Internal Use OnlyState variations and restrictions may apply to the various features and benefits outlined in this document

850004 US (08/05)

Table of contents

Product Specifications

Issue AgesMinimum Face AmountMaximum Face AmountPremium ModesPremium ClassesLiving Rewards RiderAccidental Death RiderWaiver of Premium Rider

Underwriting

Underwriting PolicySmoker and Non-Smoker DefinitionsForesters Simplified Issue Build TableImpairmentsPostponementsNon-Medical UnderwritingChanges: Within 90 DaysChanges: Over 90 Days

New Business Submissions

Submitting ApplicationsAdditional New Business GuidelinesCash With Application RulesWithdrawn ApplicationsIncomplete Risk EvaluationNot Taken OptionProducers Support

Calculating Modal Premium

15-Year Term Initial Premium Rates

20-Year Term Initial Premium RatesLRR Premium Rates Living Rewards Benefit – Male Non-SmokerLiving Rewards Benefit – Male SmokerLiving Rewards Benefit – Female Non-SmokerLiving Rewards Benefit – Female Smoker

30-Year Term Initial Premium RatesLRR Premium Rates Living Rewards Benefit – All Classes

Page

55555666

77788899

991010101010

11

12

131415161718

192021




Table of contents continued

Sample Calculations

15-Year Term Face Amount $50,000Face Amount $75,000Face Amount $100,000Face Amount $150,000Face Amount $200,000



Page

22

2324252627

2829303132

3334353637

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$25,000

Age 56 to 65

30-year

18 to 60

Monthly PAC

Quarterly

Semi Annually

Annually

0.088652

0.265957

0.515071

1.000000

15-year 20-year

18 to 65 18 to 50*

*Male smoker maximum issue age 45

Issue Ages (Age nearest birthday)

Death BenefitThe death benefit is level for the entire term. The totaldeath benefit will be reduced by any outstandingcertificate loans, and/or loan interest.

Premium ModesMonthly, quarterly, semi-annually and annually.

Modal Factors

Certificate Fees

Monthly PAC

Quarterly

Semi Annually

Annually

$5.00

$15.00

$27.50

$50.00

Premium ClassesAvailable premium classes are:

Male Non-Smoker

Male Smoker

Female Non-Smoker

Female Smoker

Underwriting decisions up to and including table 4 willbe issued. If the underwriting decision is beyond table4, a similar fully underwritten product will be considered.

Foresters Strong FoundationForesters Strong Foundation level term life insuranceto age 95 is designed with your clients’ needs in mind.

Featuring 15, 20 and 30-year fully guaranteed levelpremium periods, rates for non-smokers, and a varietyof optional benefits that can enhance the basiccoverage. If coverage is required beyond the initialterm Foresters Strong Foundation can be renewed on a yearly basis at increasing premiums.

Product Specifications

Minimum Face Amount

Maximum Face AmountLesser of:

Or Percent of Mortgage:

All Ages

$150,000

Age 18 to 50 Age 51 to 55

$200,000 $100,000

125%

Age 18 to 45 Age 46 to 65

150%

Mortgage RequirementsNew mortgage within last:

13 months

Up to Age 45 Age 46 and over

18 months

*Note: Some states require a $50,000 minimum face amount

Interest accrued daily




Note: Living Rewards Rider issue ages are the same as the basecertificate

The Living Rewards benefit grows over the initial term.Members can access that growing value through aneasy access loan. No qualification is necessary andthe loan can be used at the members’ discretion.

Maximum Loan Amount

Loan Interest Rate

Accrued Interest

90% of the amount of theliving rewards benefit at thetime of the loan request

Determined on an annual basis

*Male smoker maximum issue age 45

Issue Ages

Accidental Death RiderThe Accidental Death Rider is a relatively inexpensiveway to provide additional coverage. This rider will paythe accidental death benefit in addition to the deathbenefit of the certificate to the beneficiary shoulddeath occur from an accidental cause.

Note: The total of Accidental Death benefit insurance from allcompanies cannot exceed $300,000 on any one person

Waiver of Premium RiderThe Waiver of Premium Rider will waive the totalpremiums required should total disability occur whilethe rider is in effect. The waiver will continue as long astotal disability continues.

To qualify for this benefit the insured must be totallydisabled for a continuous period of at least six (6)months and notify Foresters of the claim within six (6)months of the date that total disability occurred.

Issue Ages

Death Benefit Amount

Expiry Date

18 to 60 (age nearest birthday)

25%, 50%, 75% or 100% ofthe face amount

Earlier of the initial termperiod or the certificateanniversary nearest themember’s age 70

Issue Ages

Expiry Date

18 to 55 (age nearest birthday)

Earlier of the initial term orthe certificate anniversarynearest the member’s 60th

birthday

RidersA complement of optional riders is available withForesters Strong Foundation. For an additional premiumthey can help tailor a combination of insuranceprotection to meet your clients’ specific needs.

Living Rewards RiderThe Living Rewards Rider is available on both ForestersStrong Foundation 20-year and 30-year terms. Whenpurchased this rider will return some if not all premiumspaid to the certificate owner at the end of the term, ifthe insured is still living.

• Refer to tabular detail pages 15, 16, 17 and 21

Note: The Living Rewards benefit is NOT payable if the deathbenefit is paid

Benefit AmountsTerm 30:

• 30th year benefit amount is 100% of premiums paid

Term 20:

• 20th year benefit amount is 100% of premiums paid, except

Benefit Amount asPercentage of Premium

58 to 60

46 to 60

60

55 to 60

Age

Male Non-Smoker

Male Smoker

Female Non-Smoker

Female Smoker

96% grades down to 90%


99%


30-year

18 to 60

20-year

18 to 50*

13 months

Up to Age 45 Age 46 and over*

18 months

*Issue age maximums apply as outlined on page 5

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4’8

4’9

4’10

4’11

5’0

5’1

5’2

5’3

5’4

5’5

5’6

5’7

5’8

5’9

5’10

5’11

6’0

6’1

6’2

6’3

6’4

6’5

6’6

6’7

6’8

6’9

6’10

217

221

225

229

234

238

242

248

255

261

267

274

282

291

298

306

314

322

330

338

346

354

362

370

379

388

396

Underwriting

Our underwriting policyWe view the producer as a partner in the sale,processing, underwriting and issue of our life insurancepolicies. We want you to be familiar with ourunderwriting philosophy and practices.

Note: The following mortgage requirement must be met for Foresters Strong Foundation life applicationsubmissions:

New mortgage within last:

Foresters Simplified Issue Build Table

WeightPounds

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

Height Feet Inches

Note: If this requirement is not met, the application willautomatically be cancelled and returned to the NAA CentralOffice.

Smoker and Non-Smoker DefinitionsFor the purpose of underwriting, the establisheddefinition of smoker and non-smoker are as follows:

Smoker:

• Individual who smokes cigarettes (including marijuana)

Non-Smoker:

• Individual who does not smoke cigarettes; allowsuse of cigar, pipe, chewing tobacco, nicotinepatches and other substitutes




ImpairmentsVery few applications are declined on the basis of a single impairment, but some medical impairmentscannot be considered for life insurance coverage.This is not a complete list:

• AIDS

• Alzheimer’s Disease or Dementia

• Cirrhosis of the liver

• Cocaine use within the past three years

• Currently on probation or parole for an offense

• Down’s Syndrome (with heart disease)

• Heart surgery in the past six months

• Kidney transplant with other medical impairments

• Leukemia (most types)

• More than one Driving Under the Influence (DUI)conviction in the past five years

• More than one stroke or Transient Ischemic Attack

• Organ transplant (except cornea or kidney with noother medical impairments)

• Paraplegic with kidney or bowel problems

• Stroke in the past six months

• Treated for alcoholism in the past twelve months

• Treated for any type of cancer in the past six months

• Treated for drug abuse in the past two years

Certain combinations of impairments are also verydifficult to insure. Again, the following list in notintended to be exhaustive:

• Chronic kidney disease with poorly controlled highblood pressure

• Depressive and/or anxiety problems in combinationwith alcohol abuse

• High blood pressure and kidney problems

• Insulin-dependent diabetes in combination withCoronary Artery Disease (CAD), CardiovascularDisease (CVD), kidney disease, amputation

• Lung disease in a smoker

PostponementsSome impairments will require a waiting period before being considered for life insurance. This is not a complete list:

• Cancer: at least one year, with the exception ofcancer of the cervix (unless treated byhysterectomy or radiation) and cancer of the skin(unless it started as a mole)

• Coronary Artery Disease (includes angina, heartattack, bypass surgery and angioplasty): six months

• Uninvestigated symptoms, symptoms currentlyunder investigation, in recovery from recent majorsurgery

Non-Medical UnderwritingBeneficiary:

• All beneficiaries must have adequate insurableinterest. In addition, to comply with legislationrelating to fraternal societies, “…benefits (must) bepaid to the member or to the estate or dependentsof the member either directly or indirectly.”

Occupations:

Most occupations do not require an extra premium.Examples of occupations that may eliminate anapplicant from Simplified Issue include:

• Any occupation that involves working at heights

• Any that involves handling explosives

• Any that involves handling hazardous materials

Avocations:

Examples of recreational activities that may eliminatean applicant from Simplified Issue include:

• Scuba diving. The decision depends primarily onthe level of certification and depths. Please haveapplicant complete Scuba and Skin DivingQuestionnaire

• Motorized racing (automobiles, motorcycles,boats). The decision depends on the level ofcompetition, size and power of engine, etc.Please have applicant complete Motor SportsQuestionnaire

• Hang-gliding, skydiving. Please have applicantcomplete Aerial Sports Questionnaire

• Mountain/Rock Climbing. Please have applicantcomplete Climbing and MountaineeringQuestionnaire

New Business Submissions

Submitting ApplicationsWhen submitting life insurance applications to Foresters,you are required to include the following items:

1. The appropriate signed life insurance applicationfor the product and state in which the productwas sold;

2. Any appropriate Underwriting questionnairesbased on the requirement where applicant hasanswered “yes” on the life insurance application;

3. The modal premium payment check made payable to Foresters;

4. An Application Remittance form outlining thepayment submitted with the life insuranceapplication;

5. State replacement form(s), if required by the state in which the product was sold;

6. Any additional state regulated forms.

These materials should be sent to your Agency Managerfor review and forwarded to Foresters New BusinessTeam for processing.

Additional new business guidelines• Completion and submission of the replacement forms

will be the responsibility of the producer

• An APS and/or inspection report, if required, will berequested by New Business at Foresters ServiceDelivery Department

• If the applicant is uninsurable, any premium and adeclination letter will be mailed to the applicant withadvance notice to the producer via email

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ChangesWithin 90-Days:

Changes made to certificates within 90-days of issue.Changes could include:

• Increasing or decreasing certificate face amount

• Increasing or decreasing rider coverage amount

• Adding or removing riders (e.g. Accidental DeathRider)

• Changing the plan type (e.g. changing from a 20-year term to a 15-year term)

To request changes within 90-days of certificate issue,we require the following:

• The original certificate issue package to be returned

• A signed letter from the member, advising of therequested changes

• If the request is for an increase in coverage (e.g.face amount increase or addition of a rider), a checkfrom the member for the difference in premium

Note: these changes are effective as of the original certificateissue date. Therefore, ensure that the check will cover thedifference in premium from the original issue date to the datethe request is being submitted.

After the change has been completed, a new certificateissue package will be provided to you for delivery to themember. The New Business delivery processes shouldthen be followed.

Over 90 Days:

Changes made to certificates over 90-days from theissue date. Changes could include:

• Decrease in certificate face amount

• Decrease in rider coverage amount

• Addition or removal of riders

• Change to non-smoking premium basis

• Reduction or removal of rating

To request changes over 90-days of certificate issue,we require the following

• A completed Application for Change, Conversionand Reinstatement that has been signed by themember. This form can be found at our NAAProducer ezbiz website, which can be accessed viathe Foresters link found on the NAA website atwww.naaleads.com




Cash with application RulesThe certificate effective date will be the date thecertificate is issued. If all outstanding requirementshave been satisfied, payment will be applied as of thecertificate effective date.

Do not collect cash with the application (CWA),complete a PAC card, or have the Temporary InsuranceAgreement (TIA) signed if any of these conditions apply:

• Proposed Insured(s) answers “yes” to any of theTIA questions

• If the proposed life insured, and no one on his orher behalf, has applied in the life insuranceapplication for more than $500,000 insurancecoverage on the life of the proposed life insured,calculated by including the amount of thebenefit applied for under a rider payable in theevent of death of the proposed life insured

• If the applicant’s nearest age is 70 or older onthe date the application is signed by the owner

• If applicant has previously been declined forinsurance with Foresters in the last 12 months

If any of the above conditions exist, the temporarycoverage will not take effect under the TemporaryInsurance Agreement even if the Agreement was leftwith the applicant.

Withdrawn applicationsIf the applicant or owner contacts Foresters directly torequest the withdrawal of an application, Foresters willemail the Producer to attempt to conserve thebusiness.

1) Business conserved:

• Producer calls Producer Support line to adviseconservation effort was successful. Notificationmust be made to Foresters within five business days

2) Business not conserved:

• Foresters proceeds with applicant’s request tocancel after five business days, unless notified byProducer

If the applicant contacts the Producer directly torequest withdrawal of the application, and theProducer is unable to conserve the business, theProducer advises the applicant to submit a datedcancellation request in writing including applicant’sname, address, signature, the certificate number(Producer provides applicant with certificate number),and current date. Foresters will return any premiumalong with a letter confirming the request forwithdrawal of the application(s). The producer will alsoreceive a copy of the letter.

Incomplete risk evaluationForesters reserve the right to determine that a case isincomplete for failure to receive underwritingrequirements. The producer will be advised by theunderwriter of the intent to cancel a case. Cases willgenerally be cancelled 45 business days fromapplication date for failure to receive requiredinformation. A refund of the premium and anexplanatory letter will be sent to the owner with anadvance notification to the Producer.

Not taken optionPolicies that are returned as, ‘Not taken within the freelook period,’ will be processed as a refund of premium.This refund will be sent to the owner(s) within tenbusiness days of receipt with an advance email to theProducer.

Producers supportTo order materials or obtain additional productinformation, including state availability, please call ourNAA Producer Support Line at:

1 877 NAA 4 BIZ (1 877 622 4249) or visit our NAAProducer ezbiz website, which can be accessed via theForesters link found on the NAA agent website atwww.naaleads.com.

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Calculating Modal Premium The following pages may be used to quote premiumamounts. Just follow these easy instructions.

ExampleForesters Strong Foundation 30-year termMale, Non-SmokerAge: 35 Face Amount: $125,000ADR: 75% WPR:Yes LRR:YesPremium Mode: monthly

Foresters Strong Foundation Premium Calculation

a) Find the rate per thousand in the applicable table . . . . . . . $2.89 (page 19)

b) Multiply by the face amount per thousand . . . . . . . . . . . . x 125

c) Multiply by the modal factor . . . . . . . . . . . . . . . . . . . . . . . x 0.088652 (page 5)

d) Add the certificate fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . + $5.00 (page 5) = $37.03

Accidental Death Rider (ADR) Premium

a) Find the rate per thousand in the applicable table . . . . . . . . $0.79 (page 19)

b) Multiply the face amount per thousand by the % of ADR selected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x (125 x 75%)

c) Multiply by the modal factor . . . . . . . . . . . . . . . . . . . . . . . x 0.088652 (page 5) = $6.57

Waiver of Premium Rider (WPR) Premium

a) Find the rate per thousand in the applicable table . . . . . . . . $0.41 (page 19)

b) Multiply by the face amount per thousand . . . . . . . . . . . . x 125

c) Multiply by the modal factor . . . . . . . . . . . . . . . . . . . . . . . x 0.088652 (page 5) = $4.54

Living Rewards Rider (LRR) Premium

a) Add the Foresters Strong Foundation Premium and the ADR Premium . . . . . . . . . . . . . . . . . . . . . . . . . . . . ($37.03 + $6.57)

b) Multiply by the LRR Premium Rate . . . . . . . . . . . . . . . . . . x 52% (page 20) = $22.67

Total Modal Premium

a) Add the certificate premium, . . . . . . . . . . . . . . . . . . . . . . . $37.03

b) ADR premium, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . + $6.57

c) WPR premium, and . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . + $4.54

d) LRR premium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . + $22.67

1

2

3

4

5

Total monthly premium = $70.81




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Sample CalculationsThe following pages provide you with monthly premiums for selected face amounts: $50,000, $75,000,$100,000, $150,000 and $200,000 for all premiumclasses.

Each table demonstrates the affects on the monthlypremium when certain riders are selected and added to the premium.

Try looking up the following examples:

Foresters Strong Foundation30-year termMale, Non-SmokerAge: 35Face Amount: $150,000ADR: 100% WPR: Yes LRR: YesPremium Mode: Monthly

Total Monthly Premium: $87.44Need help? Hint: see page 36

Foresters Strong Foundation20-year termFemale, SmokerAge: 44Face Amount: $100,000ADR: 100% WPR: No LRR: YesPremium Mode: Monthly


Foresters Strong Foundation20-year termMale, SmokerAge: 25Face Amount: $50,000ADR: No WPR: No LRR: NoPremium Mode: Monthly


Foresters Strong Foundation15-year termFemale, Non-SmokerAge: 48Face Amount: $200,000ADR: 100% WPR: Yes LRR: Not AvailablePremium Mode: Monthly


1

2

3

4

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Notes:

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Notes:

United States CanadaMailing Address: The Independent Order of ForestersP.O. Box 179 789 Don Mills RoadBuffalo, NY Toronto, Ontario, Canada M3C 1T9USA 14201-0179 Toll free: 1 800 828 1540www.foresters.biz

Foresters™ is a trademark of The Independent Order of Foresters,a fraternal benefit society. 85

0004

US

(08/

05)

Documents

Foresters Strong Foundation - NAA Rep Foundation... · 2007. 2. 3. · Foresters Strong Foundation Foresters Strong Foundation level term life insurance to age 95 is designed with