Foresters Life Insurance Canada: Is It Right For You in 2025?
Our expert's opinion on Foresters
Foresters Financial offers a foundational suite of life and critical illness insurance products in Canada, featuring standard term, whole life, and critical illness plans with useful riders like disability waivers and return of premium options, though premium flexibility is notably limited.
Positioned as a fraternal benefits society, Foresters competes not just on product but on community membership, often with affordable pricing for its core offerings compared to larger, full-service insurers.
Their products are best suited for families and individuals seeking straightforward term or permanent coverage who also value the community and member benefits unique to a fraternal organization.
While specific financial strength ratings are not publicly detailed, the insurer processes most claims within 1–3 weeks; however, customer service receives very poor public feedback (Trustpilot 2.2/5 from 8 reviews), though policyholders do gain access to unique fraternal benefits.
- ✅Variety of life and critical illness plans
- ✅Unique fraternal member benefits and community involvement
- ✅Participating dividends on whole life policies
- ✅Optional return of premium rider available
- ✅Term policies with a conversion guarantee
- ✅Available disability and juvenile illness riders
- ✅No annual policy fee for critical illness
- ❌Very poor customer satisfaction scores (Trustpilot 2.2/5)
- ❌Limited online services and digital tools
- ❌Restrictive customer service hours (Eastern Time)
- ❌Lack of premium payment flexibility
- ❌Surrender charges on permanent policies
Score- ✅Variety of life and critical illness plans
- ✅Unique fraternal member benefits and community involvement
- ✅Participating dividends on whole life policies
- ✅Optional return of premium rider available
- ✅Term policies with a conversion guarantee
- ✅Available disability and juvenile illness riders
- ✅No annual policy fee for critical illness
Our expert's opinion on Foresters
- ✅Variety of life and critical illness plans
- ✅Unique fraternal member benefits and community involvement
- ✅Participating dividends on whole life policies
- ✅Optional return of premium rider available
- ✅Term policies with a conversion guarantee
- ✅Available disability and juvenile illness riders
- ✅No annual policy fee for critical illness
- ❌Very poor customer satisfaction scores (Trustpilot 2.2/5)
- ❌Limited online services and digital tools
- ❌Restrictive customer service hours (Eastern Time)
- ❌Lack of premium payment flexibility
- ❌Surrender charges on permanent policies
Score- ✅Variety of life and critical illness plans
- ✅Unique fraternal member benefits and community involvement
- ✅Participating dividends on whole life policies
- ✅Optional return of premium rider available
- ✅Term policies with a conversion guarantee
- ✅Available disability and juvenile illness riders
- ✅No annual policy fee for critical illness
Why Trust Hellosafe?
Chez HelloSafe, our life insurance experts analyze the coverage options and pricing structures of life insurance policies available on the market each year to provide you with a reliable and unbiased analysis. Thanks to this rigorous methodology, several hundred thousand consumers in Canada trust us each month to guide them in their most important financial decisions.
The Guarantees of Foresters Life Insurance
Foresters provides several types of life and critical illness insurance policies, each designed to meet different financial planning needs. Their main products include term, whole, and critical illness coverage.
- Term life insurance: This policy provides coverage for a specific period, such as 10 or 20 years. It is typically the most affordable option and often includes the ability to renew the policy or convert it to permanent insurance without a new medical exam.
- Whole life insurance: Offering permanent coverage, this policy features level premiums that do not increase over time. It also builds a cash value that you can borrow against. Some whole life policies from Foresters are "participating," meaning they may earn dividends.
- Critical illness insurance: This coverage provides a one-time, lump-sum payment if you are diagnosed with a serious illness covered by the policy. Foresters offers two main plans:
- Live well: A simplified plan covering 4 common conditions with coverage up to $100,000.
- Live well plus: A comprehensive plan covering 25 conditions with coverage up to $2,000,000.
Key available riders include:
- Waiver of Premium for disability
- Juvenile Critical Illness Rider
- Return of Premium on Surrender or Expiry
| Feature | Term Life | Whole Life | Universal Life | Hybrid/Critical Illness |
|---|---|---|---|---|
| 🪙 Death benefit | ✔️ | ✔️ | ❌ | ❌ |
| 📈 Cash value accumulation | ❌ | ✔️ (Guaranteed growth) | ❌ | ❌ |
| 💸 Policy loans | ❌ | ✔️ | ❌ | ❌ |
| 🛡️ Available riders | ✔️ | ✔️ | ❌ | ✔️ |
| 🔄 Conversion guarantee | ✔️ (To permanent) | ❌ | ❌ | ❌ |
| 📈 Participating dividends | ❌ | ✔️ | ❌ | ❌ |
| 💲 Cost of key riders | Varies (approx. 3-5%) | Varies (approx. 3-5%) | ❌ | Varies (approx. 3-5%) |
| 🔄 Premium flexibility | ❌ (Fixed premiums) | ❌ (Fixed premiums) | ❌ | ❌ |
| ⏳ Surrender charges | ❌ | ✔️ | ❌ | ✔️ |
| 🎂 Issue age range | Variable | Variable | ❌ | Up to age 80 |
| 🔒 Guaranteed level | ✔️ | ✔️ | ❌ | ❌ |
How much does Foresters life insurance cost?
Foresters determines life insurance premiums by evaluating an applicant's individual risk profile.
Key factors in this assessment include age, overall health, pre-existing medical conditions, and lifestyle choices, such as smoker status.
The final premium is also directly influenced by the desired coverage amount and the addition of any optional riders.
The following factors are central to calculating your premium:
- Age: Each decade typically adds approximately 15% to the base premium.
- Health status: Pre-existing conditions can increase the cost by 20% or more.
- Smoker status: Smokers generally pay about 50% more than non-smokers.
- Coverage amount: Higher coverage sums increase premiums proportionally, with each unit adding around 10%.
- Rider costs: Optional riders, such as a waiver of premium or critical illness coverage, typically add 3–5% to the premium.
| Profile | Coverage amount | Non-smoker premium | Smoker premium | Professional premium |
|---|---|---|---|---|
| Healthy 30-year-old (Term-20) | $500,000 | $35 /month | $53 /month | $32 /month |
| Standard health 45-year-old (Term-20) | $250,000 | $55 /month | $83 /month | $50 /month |
| Healthy 40-year-old professional (Term-20) | $750,000 | $60 /month | $90 /month | $54 /month |
What are the surrender charges for Foresters life insurance?
Surrender charges are fees applied by Foresters when a permanent life insurance policy with cash value is cancelled within a specified initial period. These charges are designed to cover the insurer's upfront costs, such as commissions and administrative expenses. The surrender charge period has a set duration, during which a penalty is applied to the accumulated cash value if the policy is surrendered.
This penalty directly reduces the final amount paid to the policyholder, known as the cash surrender value. The charge is highest in the first policy year and decreases systematically each year until it reaches zero, after which the policyholder can surrender the policy and receive the full accumulated cash value without penalty.
| Year | Fee % | Example & Tax treatment |
|---|---|---|
| 1 | 10% | $4,500 returned on $5,000 cash value. Gains over the Adjusted Cost Basis are taxable. |
| 2 | 8% | $9,200 returned on $10,000 cash value. Gains over the Adjusted Cost Basis are taxable. |
| 3 | 6% | $14,100 returned on $15,000 cash value. Gains over the Adjusted Cost Basis are taxable. |
| 4 | 4% | $19,200 returned on $20,000 cash value. Gains over the Adjusted Cost Basis are taxable. |
| 5 | 2% | $24,500 returned on $25,000 cash value. Gains over the Adjusted Cost Basis are taxable. |
| 6+ | 0% | $30,000 returned on $30,000 cash value. Gains over the Adjusted Cost Basis are taxable. |
Impact of Surrender Charges Over Time
The impact of surrender charges decreases significantly over time. For a policy with an accumulated cash value of $5,000 in its first year, a surrender would result in a 10% charge ($500), returning $4,500 to the policyholder. By contrast, if the same policy is surrendered in year 5 with a cash value of $25,000, the charge is only 2% ($500), and the capital returned is $24,500.
The Exclusions and Limitations of Foresters Life Insurance
Foresters life insurance policies include specific situations and circumstances where a death benefit will not be paid:
- Suicide first year: No benefit is paid if death is by suicide within the first policy year.
- Extreme sports: Death resulting from participation in high-risk sports or hazardous activities is not covered.
- Private aviation: Death occurring while operating a private aircraft is excluded from coverage.
- Criminal acts: No death benefit is paid if death occurs during the commission of a crime.
- War or terrorism: Death resulting from declared or undeclared war or acts of terrorism is excluded.
- Non-disclosure: Coverage can be voided for material misrepresentation on the insurance application.
- Pre-existing conditions: Certain pre-existing conditions may be subject to a waiting period or exclusion.
- Assistance services: Value-added services like teleconsultation or repatriation are not included in the policy.
What customers think of Foresters' life insurance
| Review site | Rating and number of reviews |
|---|---|
| Trustpilot Canada | 2.2/5 (8 reviews) |
Online customer feedback on Foresters reveals several common themes regarding their service:
✅ An advantage noted by some is the affordable pricing for certain products.
✅ The fraternal member benefits and the company's community involvement are also viewed positively.
❌ A recurring issue is the poor customer service experiences reported by clients.
❌ There are frequent complaints regarding difficulties with billing and updating payment information.
❌ The limited online account functionality and communication are also noted as significant drawbacks.
Here are examples of reviews left online:
- "Seems to be decently priced life insurance, but if you live out west, their call centres are only open till 2 pm, m-f, and they have no online services for updating payment info, nor will they email you - snail mail only. Would not recommend.", Anonymous, March 18, 2025, Trustpilot.
- "Opened a life insurance policy and it was a nightmare dealing with this company. No communication no explanation for anything and they went in my account unscheduled and caused multiple NSF's on my account. Then had the nerve to bill me 111.52 after I cancelled with them. I will never do business with this irresponsible company.", Anonymous, September 20, 2024, Trustpilot.
How to Contact Foresters?
| Detail | Information |
|---|---|
| Address | 789 Don Mills Road, Toronto, Ontario, Canada, M3C 1T9 |
| Phone | 1-800-828-1540 (toll-free) |
| clientservice@foresters.com | |
| Website | https://www.foresters.com/en-ca |
| Responsiveness / Hours | Monday–Friday, 9 a.m.–5 p.m. ET |
| Live chat | Not available |
| Social media | Not available |
FAQ
How is a life insurance payout taxed in Canada?
In Canada, the death benefit from a life insurance policy is paid to the beneficiaries completely tax-free. This provides a tax-efficient way to transfer wealth or cover final expenses. However, if the payout is held by the insurance company and earns interest before being distributed, that interest income may be taxable.
What is the cancellation and surrender process?
To cancel or surrender your policy, you must submit a completed Surrender Form directly to Foresters. For policies with cash value, surrender charges may apply during the initial years, reducing the amount you receive. Partial surrenders are also permitted but will incur a $25 administrative fee.
How long does it take to process a claim?
Once all required documentation is submitted, including a certified copy of the death certificate and the claimant's statement, Foresters typically processes life insurance claims within one to three weeks. After the claim is approved, the benefit payment is issued to the beneficiary by cheque. Delays can occur if documentation is incomplete or requires further verification.
Who can be a beneficiary and how can it be changed?
You can name any individual, a trust, your estate, or a charitable organization as a beneficiary. To change your beneficiary designation, you must complete and submit a beneficiary change form. This form must be sent to Foresters by mail or fax to be legally effective.
Are medical exams required for coverage?
Foresters' requirements for a medical exam depend on the type of policy, the coverage amount, and the applicant's age and health history. Some simplified issue products, such as the Live Well critical illness plan, do not require a medical exam. For higher coverage amounts or standard policies, a medical exam is often part of the underwriting process.
What is the difference between Term and Whole Life insurance?
Term Life insurance provides coverage for a specific period, such as 10 or 20 years, and is generally more affordable. Whole Life insurance offers permanent coverage for your entire life, includes a cash value component that grows over time, and has level premiums. Term policies can often be converted to permanent coverage without a new medical exam.
Can I borrow against my policy?
Policy loans are an available feature on Foresters Whole Life insurance policies that have accumulated a cash value. The amount you can borrow is based on the available cash surrender value. These loans accrue interest and, if not repaid, will reduce the final death benefit paid to your beneficiaries.
What happens if I miss a premium payment?
Foresters policies include a grace period, typically 30 days, during which you can make a late payment without the policy lapsing. If a payment is missed beyond the grace period, the policy may be terminated. For Whole Life policies, the accumulated cash value may be used automatically to cover the premium and prevent a lapse.
How is a life insurance payout taxed in Canada?
In Canada, the death benefit from a life insurance policy is paid to the beneficiaries completely tax-free. This provides a tax-efficient way to transfer wealth or cover final expenses. However, if the payout is held by the insurance company and earns interest before being distributed, that interest income may be taxable.
What is the cancellation and surrender process?
To cancel or surrender your policy, you must submit a completed Surrender Form directly to Foresters. For policies with cash value, surrender charges may apply during the initial years, reducing the amount you receive. Partial surrenders are also permitted but will incur a $25 administrative fee.
How long does it take to process a claim?
Once all required documentation is submitted, including a certified copy of the death certificate and the claimant's statement, Foresters typically processes life insurance claims within one to three weeks. After the claim is approved, the benefit payment is issued to the beneficiary by cheque. Delays can occur if documentation is incomplete or requires further verification.
Who can be a beneficiary and how can it be changed?
You can name any individual, a trust, your estate, or a charitable organization as a beneficiary. To change your beneficiary designation, you must complete and submit a beneficiary change form. This form must be sent to Foresters by mail or fax to be legally effective.
Are medical exams required for coverage?
Foresters' requirements for a medical exam depend on the type of policy, the coverage amount, and the applicant's age and health history. Some simplified issue products, such as the Live Well critical illness plan, do not require a medical exam. For higher coverage amounts or standard policies, a medical exam is often part of the underwriting process.
What is the difference between Term and Whole Life insurance?
Term Life insurance provides coverage for a specific period, such as 10 or 20 years, and is generally more affordable. Whole Life insurance offers permanent coverage for your entire life, includes a cash value component that grows over time, and has level premiums. Term policies can often be converted to permanent coverage without a new medical exam.
Can I borrow against my policy?
Policy loans are an available feature on Foresters Whole Life insurance policies that have accumulated a cash value. The amount you can borrow is based on the available cash surrender value. These loans accrue interest and, if not repaid, will reduce the final death benefit paid to your beneficiaries.
What happens if I miss a premium payment?
Foresters policies include a grace period, typically 30 days, during which you can make a late payment without the policy lapsing. If a payment is missed beyond the grace period, the policy may be terminated. For Whole Life policies, the accumulated cash value may be used automatically to cover the premium and prevent a lapse.
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