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First Investors Life Insured Series Policy — Level Premium Variable Life Insurance

Planning For Tomorrow's Needs Today

If you are like most people, you have many long-term financial needs and goals. You also need life insurance. You may feel that you cannot afford to invest and buy life insurance at the same time. The Insured Series Policy (“ISP”) may be the answer. ISP is a variable life insurance policy that can be used to satisfy your financial and life insurance needs at the same time.

ISP has several potential uses:

• Life Insurance Protection
• Transferring Wealth to Heirs
• Payment of Death Taxes and Final Expenses
• Retirement Funding
• Education Funding
• Charitable Giving
• Business Planning
• Executive Bonus
• Buy/Sell Funding
• Key Person Insurance
• Salary Continuation

ISP has several attractive features:

• Permanent Insurance Protection

  Death Benefit — The benefit paid to your beneficiaries will fluctuate over time based upon the investment experience of the subaccounts you select. 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 12 Years — One of the most attractive features of ISP is that you make annual premium payments for only 12 years. After that, you don't pay another penny in premiums, yet the Policy remains in force for the life of the insured (unless you surrender your Policy or borrow against it to the extent that it lapses). We cannot increase or decrease the amount of your premiums or extend the premium payment period.

  All guarantees associated with permanent insurance protection are based upon the financial strength and claims-paying ability of First Investors Life Insurance Company.

• Investment Opportunities

  A Variety of Subaccounts — ISP offers 10 different 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 any five subaccounts at one time. This allows you to diversify your 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 two times a year.

  The cash value of your ISP will fluctuate with the performance of the subaccounts you select. You bear the investment risk with respect to the Policy's cash value, which could decline to zero. 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 your premiums.

  Professional Management — Professional portfolio managers closely monitor the investments in each ISP subaccount.

• Tax Advantages

  Because it is an insurance policy, ISP has some powerful tax advantages:

  Tax-Deferred Growth — Your net premiums are invested in one or more investment subaccounts. You pay no income tax on your earnings, unless you withdraw them through full or partial surrenders of your policy, or cause your policy to lapse by failing to pay premiums or borrowing against it. This is a powerful tax advantage that may help your cash value and death benefit grow faster.

  Tax-Free Transfers Among Investment Subaccounts — If your needs or goals change, you can shift your cash value among ISP's different investment subaccounts, without any current income tax consequences. You are limited to two transfer per year.

  Tax-Free Death Benefit — The death benefit on an ISP is paid directly to your named beneficiary generally free of federal income tax and probate costs or delays. This makes ISP an excellent estate planning tool.

• Easy Access to Your Cash Value

  ISP 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 Right for You?

• An ISP is suitable only for those who need life insurance protection. There are fees and charges associated with the costs of the ISP’s insurance protection, so if you are only seeking an investment, other options may be more appropriate for you.
• In addition, an ISP is most appropriate for those with long-term financial goals, want a tax-deferred investment, and are willing to take some degree of investment risk with their cash value.
• Before you purchase an ISP, you should carefully consider whether or not you have the intention and financial ability to make the required premium payments for 12 years. 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 during the 12-year premium payment period.

Your First Investors representative will be glad to help determine your insurance needs and discuss whether ISP is right for you and help you determine your annual premium amount. He or she will also explain the ISP’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.