Life Insurance & Annuities
First Investors Life ISP CHOICE — Level Premium Variable Life Insurance
Planning For Tomorrow's Needs Today
In today's world we need a life insurance product that truly helps people, especially if they are facing unexpected circumstances. First Investors Life may have just the right life insurance policy to provide the right kind of help. We call it ISP CHOICE.
ISP CHOICE is a Variable Life Insurance policy with a choice of features and benefits that permit you to design a life insurance policy that works best for you.
Which ISP CHOICE policy payment option is right for you is a question best discussed with your First Investors representative. Based on your individual circumstances, your representative will assist you in selecting the policy option that best suits your needs.
ISP CHOICE has four Variable Life Premium Payment options:
ISP CHOICE-10: If you are interested in a relatively short premium payment period, ISP CHOICE-10 may be for you. ISP CHOICE-10 has the shortest premium payment period available among the ISP CHOICE policy series. It provides you with all the advantages of permanent life insurance protection, with a premium payment period limited to ten years. After ten years of premium payments, your policy will be “paid up.” That means your life insurance coverage remains in effect but there are no further premiums due. However, your cash value may continue to grow for as long as you keep the policy in-force.
ISP CHOICE-20: This policy gives you all the benefits of a permanent life insurance policy and will be paid up after twenty years. If your focus is on having more insurance coverage or keeping your insurance premiums down, take a look at ISP CHOICE-20.
ISP CHOICE-65: If you want to concentrate on retirement, this policy option may appeal to you. You can coordinate your premium payment period with your 65th birthday and retire with a fully paid up, permanent life insurance policy, without any further premium payment obligation.
ISP CHOICE-Whole Life (WL): If you are interested in obtaining the most life insurance coverage you can or are looking to limit the cost of your coverage, ISP CHOICE-WL may be best for you. ISP CHOICE-WL has all the features you would expect from a permanent life insurance policy.
ISP CHOICE has several attractive features:
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Permanent Insurance Protection
Death Benefit — The benefit paid to your beneficiaries will fluctuate over time based upon the investment experience of the selected Subaccounts and the interest paid on any Fixed Account allocation. However, the death benefit is guaranteed never to be less than the policy's initial face amount (reduced by any partial surrenders and any outstanding policy loans).
Premiums Limited to a Fixed Premium Payment Period — One of the most attractive features of ISP CHOICE is that you make only the required number of premium payments. After that, you don't pay another penny in premiums, yet the policy remains in force for the life of the insured, up to age 121, unless you surrender your policy or borrow against it to the extent that it may contribute to the policy lapsing. The amount of your premiums cannot be increased and the premium payment period cannot change.
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Self Direction of the Cash Value's Investment
A Variety of Subaccounts — ISP CHOICE offers professionally managed subaccounts, each with its own investment objectives. Each of the subaccounts invests in a portfolio of stocks and/or bonds. You can be invested in a selection or all of the subaccounts at one time. This allows you to diversify you cash value among different asset classes and investment styles. Your First Investors representative will help you select the subaccounts that are right for you. You can change your subaccount selections up to six times per year. Professional portfolio managers closely monitor the investments in each ISP CHOICE subaccount.
Fixed Account — ISP CHOICE also offers a Fixed Account. The Fixed Account has a Guaranteed* Annual Interest Rate of 4.00%. In addition, First Investors Life may pay excess interest on the Fixed Account. Check with your First Investors representative for the current rate on the Fixed Account. Allocations to the Fixed Account are limited to 50% of each year's net premium.
The cash value of your ISP CHOICE policy will fluctuate with the performance of the subaccounts you select and the interest paid on any Fixed Account allocations. You bear the investment risk with respect to the portion of the policy's cash value invested in the subaccounts and First Investors Life bears the investment risk on the portion invested in the Fixed Account. Absent a fixed account allocation the policy's cash value could decline to zero. There is no minimum guaranteed cash value. However, the death benefit will never be less than the guaranteed insurance amount (adjusted for partial surrenders and outstanding policy loans), if you pay all required premiums.
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Tax Advantages
Because it is an insurance policy, ISP CHOICE has some powerful tax advantages:
Tax-Deferred Growth — Your net premiums are invested in one or more subaccounts and/or the Fixed Account. You pay no income tax on your earnings, unless you withdraw them through a full or partial surrender or cause the policy to lapse by failing to pay premiums of borrowing against it. This is a powerful tax advantage that may help your cash value and death benefit grow faster.
Tax-Free Transfer Among Investment Subaccounts and/or the Fixed Account — If your goals change you can shift your cash value among ISP CHOICE's different subaccounts and the Fixed Account without any current tax consequences.
Tax-Free Death Benefit — The death benefit on an ISP CHOICE policy is paid directly to your named beneficiary free of federal income tax and probate costs and delays.
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Easy Access to Your Cash Value
ISP CHOICE offers two ways to tap into your cash value, surrenders and loans:
Surrenders — You may access the cash value of your policy by requesting a partial or total surrender at any time after the first policy year. A surrender is a taxable event. As a general rule, the policy owner is responsible for paying ordinary income taxes on the difference between the surrender value and total premiums paid. We generally do not recommend that you take a partial surrender of your policy. If you take a partial surrender from your policy, reduce the face amount of the policy, eliminate a rider, or make any other material change in the policy after it is issued, you may convert the policy into a modified endowment contract. This can have adverse tax consequences to you.
Loans — You may take a policy loan of up to 75% of the cash value in the first three years and, thereafter, 90% of the cash value. Policy loans are charged interest at an annual rate of 6%. An amount equal to the amount you borrow is maintained separately from your invested cash values and continues to earn 4% interest, resulting in a net cost to you of only 2%. The death benefits and cash value are reduced by outstanding loans. A policy loan is generally not taxable income. However, a policy loan is taxable (to the extent it exceeds your premiums paid) if it is outstanding at the time you surrender or lapse your policy or you convert your policy into a modified endowment contract by making a material change to the policy during the first seven years after it is issued. A policy loan may also be taxable if it causes a termination of the policy. This could occur if market conditions caused the cash value of the policy to fall below the outstanding loan amount.
Is an ISP CHOICE Policy Right for You?
ISP CHOICE is a specialized life insurance policy that is all about choice:
Do you need life insurance protection?
ISP CHOICE is suitable only for those who need life insurance. There are fees and charges associated with the costs of the ISP CHOICE insurance protection, so if you are only seeking an investment, other options may be more appropriate for you.
Are you willing and capable of tolerating investment risk while directing how your cash value is invested?
Remember, you take the investment risk on that portion of you cash value invested in the subaccounts.
- Before you purchase an ISP CHOICE policy, you should carefully consider whether or not you have the intention and financial ability to make the required premium payments. Because most of the fees and charges are imposed during the early years of your policy, you will generally lose money if you fail to make all premium payments in the premium payment period or, in the case of the ISP CHOICE-WL, up to fifteen years.
Your First Investors representative will be glad to help determine your insurance needs and discuss whether ISP CHOICE is right for you and help you determine the policy option that is best for you. He or she will also explain the ISP CHOICE's fees and charges, which include an annual administrative expense, an additional first year administrative charge, ongoing mortality and expense risk charges, and a sales charge on each premium payment.
How to Obtain a Prospectus: Download or
For more complete information, including charges and expenses, on any variable life insurance policy offered by First Investors Life Insurance Company, please download a free prospectus. You may also obtain a free prospectus by contacting your First Investors representative, calling (800) 832-7783, or writing to our administrative office at the following address: First Investors Life Insurance Company, Raritan Plaza 1, PO Box 7836, Edison, N.J. 08818. You should consider the investment objectives, risks, charges and expenses of the product carefully before you invest or send money. The prospectus contains this and other information about the product, and should be read carefully before investing. Contract availability and provisions may vary by state.
ISP CHOICE is approved in the states with the form number listed below:
| VL-2 (10-06)(AL) | VL-2 (10-06)(AZ) | VL-2 (10-06)(AR) | VL-2 (10-06)(CA) |
| VL-2 (10-06)(CO) | VL-2 (10-06)(CT) | VL-2 (10-06)(DE) | VL-2 (10-06)(DC) |
| VL-2 (10-06)(FL) | VL-2 (10-06)(GA) | VL-2 (10-06)(ID) | VL-2 (10-06)(IL) |
| VL-2 (10-06)(IN) | VL-2 (10-06)(IA) | VL-2 (10-06)(KS) | VL-2 (10-06)(KY) |
| VL-2 (10-06)(LA) | VL-2 (10-06)(ME) | VL-2 (10-06)(MD) | VL-2 (10-06)(MA) |
| VL-2 (10-06)(MI) | VL-2 (10-06)(MN) | VL-2 (10-06)(MS) | VL-2 (10-06)(MO) |
| VL-2 (10-06)(NE) | VL-2 (10-06)(NV) | VL-2 (10-06)(NH) | VL-2 (10-06)(NJ) |
| VL-2 (10-06)(NM) | VL-2 (10-06)(NY) | VL-2 (10-06)(NC) | VL-2 (10-06)(ND) |
| VL-2 (10-06)(OH) | VL-2 (10-06)(OK) | VL-2 (10-06)(OR) | VL-2 (10-06)(PA) |
| VL-2 (10-06)(RI) | VL-2 (10-06)(SC) | VL-2 (10-06)(TN) | VL-2 (10-06)(TX) |
| VL-2 (10-06)(UT) | VL-2 (10-06)(VT) | VL-2 (10-06)(VA) | VL-2 (10-06)(WA) |
| VL-2 (10-06)(WV) | VL-2 (10-06)(WI) | VL-2 (10-06)(WY) |
* All guarantees are subject to the financial strength and claims-paying ability of First Investors Life Insurance Company. First Investors Life makes no guarantees with respect to the investment return or principal value of the underlying subaccounts.
ISP CHOICE is issued by:
First Investors Life Insurance Company
110 Wall Street
New York, New York 10005
(800) 832-2078
Distributed by:
First Investors Corporation
Each company is a wholly owned subsidiary of First Investors Consolidated Corporation.
