ForeIncome creates guaranteed lifetime income for your clients by giving them two different ways to grow their income Withdrawal Base: Guaranteed income growth or greater income growth potential (that may keep growing even after payments start).*

Guaranteed growth

Provides an 8% guaranteed annual roll-up for predictable Withdrawal Base growth that continues beyond 10 years if income isn’t started.1,2,5

Growth potential

Adds 2X contract value interest credits before income starts and 1X after for Withdrawal Base growth potential during retirement.1,3,5

No market losses

No down-market losses4 means less to worry about.

*Income is determined as a percentage of the Withdrawal Base, based on the age at income activation. The income benefit is included on date of issue for an annual charge of 1.00% of the Withdrawal Base at the end of each contract year. Initially, the Withdrawal Base equals the premium and grows according to the benefit option selected. The Withdrawal Base is used solely to determine the withdrawal benefit amount and is not available for cash surrender or as a death benefit.

Option 1

8% guaranteed income growth

A flexible way to build income.

With the Guaranteed Income Builder Benefit option, your clients will get a consistent 8% of their initial premium (adjusted for withdrawals) added to their Withdrawal Base every year until income activation.1,2,5 For example, a $100,000 ForeIncome purchase would mean $8,000 added each year to the Withdrawal Base for determining future income. And that 8% annual increase will keep happening, even if your clients wait 10, 15 or more years to activate their income.

Option 2

Rising income potential

A flexible way to help offset inflation.

Before income activation, the Income Multiplier Benefit adds 2X any earned interest credits to the Withdrawal Base.5 And this growth potential continues year after year until your clients are ready to activate their income (even if that is 10, 15 or more years). If no interest credits, Withdrawal Base stays level.

After income starts, 1X any earned interest credits are added to the Withdrawal Base to increase your clients’ income (if no interest credits, Withdrawal Base stays level). 1,3,5 Interest credits are based on the interest crediting strategy selected. There is the potential for 0% crediting during any strategy term.

Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and assume compliance with the product's benefit rules, as applicable.

1Credits are made to the Withdrawal Base which is not available for cash surrender or as a death benefit.

2Percentage shown is of the premium paid, reduced for any withdrawals in proportion to the reduction in contract value and applies to the Withdrawal Base only. Prior to activating the benefit, a Deferral Bonus will not be credited in years where a withdrawal occurs.

3Withdrawal Base increases are a multiple of the dollar amount of interest credits to your account value in a given year. Prior to activating the benefit, a Deferral Bonus will not be credited in years where a withdrawal occurs. After activation, a bonus will not be credited in years where withdrawals exceed the Lifetime Annual Payment (LAP). No bonus will be credited after the Income Phase Bonus Period. The Income Phase Bonus Period is the period during which LAP withdrawals continue to be deducted from the contract value.

4Early withdrawal charges and Market Value Adjustments (MVA) may also apply. Withdrawals may reduce any optional guaranteed amounts in an amount more than the amount of the withdrawal.

5For contracts issued prior to age 50, the Deferral Bonus and Withdrawal Base increases will not apply until the first contract anniversary following attainment of age 50 and the benefit fees will not be assessed until the first contract anniversary following attainment of age 50. Upon the contract anniversary following the attainment of age 50, the first Deferral Bonus will be applied and rider fees will be assessed. The Withdrawal Base and Deferral Bonus Base will initialize at the contract value on the contract anniversary prior to 50th birthday. For Joint owned contracts, the youngest owner’s age is used.

Options 1 and 2

Access and flexbilility

ForeIncome offers added flexibility to your clients when they need to access their money.

A flexible way to access money
Your clients can withdraw up to 8% of their beginning of year contract value annually without incurring a withdrawal charge or market value adjustment.*

A flexible way to choose income payments
Your clients don’t have to choose single or joint lifetime income until they decide to start their income payments.

Access and Flexibility
Options 1 and 2

Access and flexbilility

ForeIncome offers added flexibility to your clients when they need to access their money.

A flexible way to access money
Your clients can withdraw up to 8% of their beginning of year contract value annually without incurring a withdrawal charge or market value adjustment.*

A flexible way to choose income payments
Your clients don’t have to choose single or joint lifetime income until they decide to start their income payments.

*For both Withdrawal Base growth options, withdrawals prior to income activation will eliminate the Deferral Bonuses in the year of withdrawal.

For the Income Multiplier Benefit, after benefit activation, a bonus will not be credited in years where withdrawals exceed the Lifetime Annual Payment.

All withdrawals prior to activation and those in excess of the guaranteed income will reduce the Withdrawal Base and associated income in proportion to the contract value reduction associated with the excess amount.

*Hypothetical sample assumptions: Issued in Pennsylvania. Non-qualified premium. 7-year withdrawal charge period. Assumes ForeIncome fixed index annuity contract purchased for a $200,000 premium and selection of the Guaranteed Income Builder Benefit Withdrawal Base growth option – single life and no selection of an interest crediting method. The sample reflects ForeIncome purchased at age 55 and income activation at age 70, with no withdrawals prior to income activation. Early withdrawal charges and Market Value Adjustments (MVA) may apply. Withdrawals may reduce any optional guaranteed amounts in an amount more than the amount of the withdrawal. The Guaranteed contract value represents the guaranteed minimum value based on 0% interest crediting. If index crediting strategies are selected, indexes are not available for direct investment. View full sample illustration for additional important information.

Interest Crediting Methods

One product. Many ways to customize.

No two clients are the same. That’s why we’ve added more crediting methods and indices to help you further customize your clients’ retirement strategies. Click and share any of the links below to help your customers understand how theses crediting methods and indices work.

One-Year Point-to-Point with Participation Rate

 

Available indices

PIMCO Balanced Index

One-Year Point-to-Point with Performance Trigger

 

Index

S&P 500® Index

Two-Year Point-to-Point with Spread

 

Available indices

BlackRock Diversa Volatility Control Index
Franklin US Index

One-year Fixed Rate

Customize even more

A diversified fixed index annuity may offer greater growth potential than an undiversified one.

 

Just in case...

We’ve added a bailout provision to every crediting strategy (certain conditions apply).

ForeIncome: the facts

Product description A single premium fixed index annuity designed with a guaranteed lifetime withdrawal benefit to help meet the need for predictable lifetime income in retirement. Available for non-qualified, IRA, Roth IRA and SEP IRA plans.6
Issue ages 45-85
Premium amount7
  • $25,000 minimum premium
  • $1,000,000 maximum premium for ages 45-80 (as measured by total contribution per person for all annuities with the company)
  • $500,000 maximum premium for ages 81-85 (as measured by total contribution per person for all annuities with the company)
Available interest crediting methods Interest is credited to the contract value based on the choice of one or more interest crediting strategies. There are a variety of choices with different methodologies, advantages and trade-offs of each.
Charges and fees Guaranteed Lifetime Withdrawal Benefit is included at issue for an annual charge of 1.00% of the Withdrawal Base at the end of each contract year.
Withdrawal charge schedule8,9,10

Up to 10% of the beginning-of-year contract value may be withdrawn annually without incurring a withdrawal charge. Withdrawal charges apply to amounts withdrawn in excess of the free withdrawal amount during the withdrawal charge period.

Five-year withdrawal charge schedule

Year 1 2 3 4 5 6+
Charge 9% 8% 7% 6% 5% 0%

 

Seven-year withdrawal charge schedule

Year 1 2 3 4 5 6 7 8+
Charge 9% 8% 7% 6% 5% 4% 3% 0%

 

Ten-year withdrawal charge schedule

Year 1 2 3 4 5 6 7 8 9 10 11+
Charge 9% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%
Market value adjustment (MVA)9 A Market Value Adjustment refers to the potential fluctuation of the surrender value of the annuity in response to market conditions. Applies during the withdrawal charge period on withdrawals in excess of the free partial withdrawal amount. The MVA also applies to annuitization during the withdrawal charge period when a withdrawal charge would also apply.
Guaranteed lifetime withdrawal benefit (GLWB)11

Included at issue. Must be at least age 55 to activate the benefit. Income is provided after activation through annual guaranteed lifetime withdrawal amounts, known as Lifetime Annual Payments (LAP).12 The LAP is determined as a percentage of the Withdrawal Base amount. The Withdrawal Base amount is a separate value that grows annually based on one of two options chosen at issue, described below. The Withdrawal Base is not available as a death benefit or for cash value surrender.

  • Guaranteed Income Builder Benefit - 8%13 with no interest credits added.
  • Income Multiplier Benefit – 2X14 the interest credits during deferral and 1X14 the interest credits after activation, for a period of time.
Lifetime withdrawal percentages (locked in at activation)

Sample factors. Joint life income options are also available at reduced percentages.

Age upon activation 55 65 75
Guaranteed Income Builder Benefit: Single Life Income Option 3.50% 4.50% 5.50%
Income Multiplier Benefit: Single Life Income Option 4.00% 5.00% 6.00%
Guaranteed minimum surrender value (GMSV)

The GMSV is equal to the Premium Payment less withdrawal proceeds. If GLWB income activation has not occurred, the GMSV is used for determining the following after the withdrawal charge period when greater than the contract value:

  • Death Benefit
  • Surrender value
  • Contract value for annuitization purposes
Death benefit Remaining contract value passes to beneficiaries at no additional charge.
Other benefits9,15
  • Nursing Care Waiver – At any time on or after the Issue Date of the policy, if your client should become confined to an approved nursing facility for at least 90 consecutive days, withdrawal charges and MVA on any portion of the contract value withdrawn will be waived.
  • Terminal Illness Waiver – If your client has been diagnosed with a terminal illness after the first contract anniversary, withdrawal charges and MVA will be waived on any portion of the contract value withdrawn.
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