Legacy Strategy

Case Study

Challenge: Client wants to build a financial legacy while retaining accessibility options.

Case Profile:

  • Client age 50-80
  • Has money they do not intend to use in life
  • Finds tax-deferred equity investing appealing
  • Wants the ability to access the money or receive payouts if necessary

Capture performance to help grow a legacy

The Give Strategy uses a ForeRetirement variable annuity to offer a way for you to help clients leverage ForeRetirement’s growth potential to help create a more significant legacy. By purchasing ForeRetirement variable annuity and electing the optional Maximum Daily Value (MDV) death benefit for an additional charge, clients can lock in each new daily high of contract value as death benefit value for beneficiaries.

The death benefit will provide the most value if the contract is not accessed during life. As such, MDV is available as a stand-alone election, not requiring an income benefit alongside it. However, should clients want an income benefit or otherwise need to access the contract, they have that flexibility.

With either the Daily 6 or Daily +4 withdrawal benefit option also elected, withdrawals up to the guaranteed withdrawal amount will reduce the MDV death benefit value dollar-for-dollar. Any amount withdrawn in excess of the guaranteed amount and all withdrawals without an income benefit reduce the MDV death benefit value proportionately to resulting reduction in contract value.

Proportionate reductions may be greater than dollar-for-dollar.

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


Marketing Resources

Client Guide



Sample Illustration:
Legacy Strategy with Maximum Daily Value (Give)



Suite Product Guide



Sample Illustration:
Legacy Strategy with Legacy Lock II (Give)







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All products and optional benefits are subject to state and firm 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. A standard death benefit is included in the base product. 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.

The ForeRetirement Variable Annuity is available in multiple share classes, which each have different fees and charges as described in the prospectus. Financial professionals’ commissions may also differ depending upon the share class selected. You should discuss which share class is right for your clients based on the available options. Important share class considerations include, but are not limited to, investment holding period and investment flexibility.

Daily +4/Daily 6 cost 1.25% annually. Daily +5/Daily 7 costs 1.10%. The charges cannot exceed 2.50%. These optional benefit charges may increase upon any contract anniversary. If an increase is declined, the withdrawal percentage will be decreased by 1% (ex.: 5% to 4%); however, market-based step-ups and Deferral Bonuses, if applicable will continue to be credited.

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.

Investment requirements apply. Investment options are designed to reduce investment volatility within the portfolios. As a result, clients should anticipate that their contract value normally may not decline in value as much as the overall market in downturns. However, they should also anticipate that their contract value will not normally increase in value to the same extent as the equity or bond markets during market upswings, simultaneously mitigating insurance company risk under the guarantee. If clients are uncomfortable with the inclusion of these fund options in their investment, the optional benefits within ForeRetirement may not be suitable. 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.

Marketing materials may not be available for use in all states, including but not limited to, Georgia, and Mississippi. Not construed as an offer for solicitation until your state has approved the product and the referenced marketing materials.

Sale of a variable annuity requires the use of the appropriate prospectus, available through your wholesaler. The prospectus contains detailed information including investment objectives, risks, and charges and expenses. Please have your clients read the prospectus carefully before they invest or send money.

Variable annuities are issued by Forethought Life Insurance Company and are underwritten and distributed by Forethought Distributors, LLC.