Income Strategy

Case Study

Challenge: Client wants income certainty while retaining growth potential in retirement

Case Profile:

  • Client age 50-75
  • Has money to be devoted to an income strategy
  • Will start income within 10 years
  • Does not plan to access money for one-time needs
  • Wants to help ensure growth until retirement and retain growth potential after

If it goes up, it gets locked down

The Live Strategy uses a ForeRetirement variable annuity to offer you the opportunity to help clients implement a plan for lifetime income certainty while retaining the ability to grow that income over time. For the Live Strategy, clients purchase a ForeRetirement variable annuity and elect the optional Daily Lock Income Benefit for an additional charge.

With the Live Strategy:

  • Daily market-based step-up opportunities to age 90.
  • Your client’s income can increase through the greater of (1) a 6% annual deferral bonus applied to the Withdrawal Base, or (2) daily contract value highs if they exceed the deferral bonus. Market step-ups may continue to age 90 when your client’s contract value exceeds their Withdrawal Base.
  • 6% deferral bonus is credited each year it exceeds daily contract value highs. Available for up to 10 years, or until first withdrawal, if sooner.
  • 3 age bands for withdrawals, 5% at 65. (4% at 59½-64; 6% at 85+), reduces by 0.50% for joint, percentage based on the age of the younger spouse.

 

Optional benefits are available at an additional cost and investment restrictions apply.

 

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Client Guide

 

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Live Seminar

 

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Sample Illustration (Live)

 

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All guarantees are based on the claims-paying ability of Forethought Life Insurance Company and assume compliance with the benefit rules.

Products and optional features are subject to state and firm availability. All riders are subject to state approval and variations.

Variable annuities offer tax-deferral, professionally managed investment options and flexible payouts. Values will fluctuate with investment performance, and the annuity may gain or lose value. Charges and fees will also reduce its value. Optional benefits are not available for purchase outside of a variable annuity and may be elected at an additional cost. Suitability and willingness to purchase the variable annuity must be considered prior to the potential benefits of any optional features.

Taxable distributions (including certain deemed distributions) are subject to ordinary income taxes, and if made prior to age 59½, may also be subject to a 10% federal income tax penalty. Distributions received from a non-qualified contract before the Annuity Commencement Date are taxable to the extent of the income on the contract. Payments from IRAs are taxable in accordance with the normal rules surrounding taxation of payments from an IRA. Early surrender charges may also apply. Withdrawals will reduce the death benefit and any optional guaranteed amounts in an amount more than the actual withdrawal.

This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your tax or legal counsel for advice.

Variable annuities are sold by prospectus. The prospectus contains investment objectives, risks, fees, charges, expenses, and other information regarding the variable annuity contract and the underlying investments, which should be considered carefully before investing. Instruct your clients to read the prospectus, which can be obtained by calling 866-645-2449, before investing money.

“Forethought” is Forethought Life Insurance Company and affiliates, subsidiaries of Global Atlantic Financial Group Limited.

The ForeRetirement flexible-premium variable annuity suite is issued by Forethought Life Insurance Company and underwritten and distributed by Forethought Distributors, LLC.

FOR BROKER/DEALER USE ONLY. NOT FOR USE WITH THE PUBLIC.

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