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 Lock Income Benefit or Annual Lock Income 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 Any amount withdrawn in excess of the guaranteed amount and all withdrawals without an income benefit reduce the MDV death benefit value proportionately to resulting reduction in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

 

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Sample Illustration (Give)

 

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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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