Forethought Life Insurance Company is a part of Global Atlantic Financial Group. All of their life insurance products are offered through Global Atlantic but were labeled as Forethought annuities. They offer fixed, variable, fixed indexed, long-term care and income annuities, and standard life insurance policies.
About Forethought Life Insurance Company
Forethought Life Insurance Company was founded in 1985 and was headquartered in Batesville, Indiana. The company offers a variety of life insurance products, including whole life, term life, and universal life. Forethought also offers annuities and long-term care insurance. In addition to its traditional life insurance products, Forethought has a number of unique offerings, such as its “living benefits” life insurance policies.
In 2014, Forethought was acquired by Global Atlantic Financial Group. Global Atlantic was founded at Goldman Sachs in 2004. In 2013, it became an independent, privately held company. In 2021, KKR acquired a majority ownership stake in Global Atlantic. This company now operates as a subsidiary and standalone business.
Forethought Life Insurance Company Financial Strength Ratings
Global Atlantic is rated A (Excellent) by A.M. Best and A- (Strong) by Standard & Poor’s.
There are three, five, or seven-year variations of the SecureFore Series of fixed annuities. The longer the term you pick, the better your upside potential will be.
You must be younger than 85 years old to get this contract. You also need at least $10,000 for it. Earnings are tax-deferred, so you will not pay taxes on your money until you start withdrawing it in retirement.
Research Forethought fixed annuity rates. Search for Global Atlantic.
Forethought Fixed Annuity Rates
Compared to other fixed annuity contracts, SecureFore fixed annuities rank lower on the annuity rate spectrum. Forethought fixed annuity rates range from 1.25% to 2.50% as an average.
Each annuity in this series comes with a death benefit equal to the full value of the contract in a lump sum.
Return of Premium
There is also an optional return of premium rider. If you pick this at contract issue, you will get back your original payment minus any withdrawals at any time you want to cancel the contract.
Annual fees are not associated with the SecureFore Series of annuities. However, if you take out more than the 10% allotted each year, there will be a withdrawal fee.
Annuitants who draw from their account before they are 59.5 years old will have to pay 10% more to the IRS than normal taxes.
You need to be between 45 and 85 years old and have at least $25,000 to spend. You can buy a ForeIncome II fixed indexed annuity with either a five, seven- or ten-year guaranteed fixed-rate period.
You get a fixed account with this annuity. You also get an account that follows the index that you chose.
Guaranteed Lifetime Withdrawal Benefit
This annuity has a Guaranteed Lifetime Withdrawal Benefit (GLWB). The GLWB will allow you to increase the size of your withdrawal base, which will make your payouts bigger. You can choose two choices with this benefit:
- Guaranteed Income Builder Benefit: This will grow your withdrawal base by a flat fixed rate, with no further increases.
- Income Multiplier Benefit: While you defer your lifetime income payments, Forethought will multiply your interest credits by double.
This contract does not have annual fees. However, you will pay a 1% annual fee for the Guaranteed Lifetime Withdrawal Benefit (GLWB). Additionally, Forethought lets you take out as much as 10% of your contract value every year without penalty.
- Guaranteed payments for 5 to 30 years
- Straight Life Only
- Joint and Survivor
- Single or Joint Life with guaranteed payments for 5 to 30 years
- Single or Joint Life with cash refund
- Single or Joint Life with installment refund
Advanced Payment Option
If you need the money, this contract allows annuitants to advance some of their money now. But, unfortunately, you can only do this twice during your life with the contract.
Annual Increase Option
You can add 2%, 3%, or 4% increases to your monthly payments. This will help you keep up with inflation. Keep in mind the initial payments will be lower than regular payments.
Forethought will also allow you to set up a qualifying longevity annuity contract, or QLAC, which lets you delay your required distributions up to the first day of the month after you turn 85.
This product has no contract or benefit fees. It is also free of withdrawal charges.
If you withdraw your money from an annuity before you reach the age of 59.5, then you will have to pay 10% more in taxes on top of what you already owe for regular income taxes.
Forethought Choice Income
Forethought Choice Income annuity is a 10-year fixed indexed annuity designed for earning interest based on the performance of a stock market index, locking in any gains while protecting the investment against stock market losses, deferring taxes until future withdrawals, and creating a guaranteed income for life.
The Forethought Choice Income annuity has a reset feature. It means that when you earn interest, it counts as the beginning value for the next period. And if you get a loss, there is no need to recover it because it stays at that amount.
Waiver Of Fees
The Choice Income annuity offers a couple of other good features. One is a terminal illness and nursing home waiver. This means that if you are diagnosed with cancer or need to go to the hospital or a nursing home for an extended period of time, forethought will waive all charges, giving you access to your money for those expenses.
Forethought ForeCare is a 9-year, single premium deferred annuity designed to pay for long-term care expenses, tax-free. The long-term care annuity multiplies the policyholder’s initial investment allowing the annuitant to receive up to two or even three times the contract value to spend on long-term care expenses.
This annuity is available to consumers between the ages of 50 and 80 with a minimum single premium investment of $35,000 (for both single or joint insured) and a maximum premium limit of $400,000 for a single person, or $600,000 for a couple.