Principal Protection

Case Study

Challenge: Client is seeking predictable crediting while protecting principal.

Case Profile:

  • Client age 50-80
  • Finds tax deferral  appealing
  • Wants the ability to access the money or receive payouts if necessary

 

Principal protection, predictable crediting

The SecureFore series of fixed annuities provides compelling options for those clients who want principal protection with predictable crediting. The SecureFore series provides a guaranteed interest rate schedule for the initial three or five years, depending on the product selected. Products are single-premium and:

  • Allow 10% annual free withdrawals during the surrender charge period
  • Offer three rate bands for increasing interest crediting
  • Renew at current rates after the initial guarantee period, subject to a contractual minimum
  • Waive surrender charges and market value adjustment for nursing home confinement or terminal illness

 

SecureFore 7: Predictability with options

SecureFore 7 gives clients options and flexibility for their saving objectives. Clients have a choice a three- or five-year guaranteed rate schedule within a seven-year surrender charge duration.

However, clients may surrender the contract in any year after the guaranteed rate schedule expires with a “bailout” feature. The Surrender Charge Waiver allows penalty surrender if the renewal rate after the guaranteed rate schedule is less than the contractual “bailout” rate, set at issue. As a result, clients retain penalty-free options should interest rates drop below the "bailout" rate.

SecureFore 5: Complete crediting certainty

SecureFore 5 offers clients an attractive combination of appealing rates and complete crediting certainty with a guaranteed interest rate schedule for the duration of a five-year surrender charge period.

SecureFore 3: Short-Term Stability

SecureFore 3 fixed annuity offers a three-year guaranteed rate schedule with a three-year surrender charge period. Clients can enjoy the same crediting predictability as other SecureFore products, but for a shorter length of time. After the guaranteed rate period expires, a new interest rate will be declared and guaranteed for one year, however, your clients may appreciate the opportunity to move their money without penalty after three years, instead of five or seven.

Marketing Resources

SecureFore 3

Client Guide

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SecureFore 3

Product Details

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SecureFore 5

Client Guide

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SecureFore 5

Product Details

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SecureFore 7

Client Guide

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SecureFore 7

Product Details

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Guarantees are based on the claims-paying ability of Forethought Life Insurance Company.

Products and optional features are subject to state and firm availability. State variations may apply.

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.

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.

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

SecureForeSM fixed annuities are issued by Forethought Life Insurance Company and available in most states with contract FA1101SPDA-01, (certificate series GA1101SPDA-01, as applicable). Products and features are subject to state variations and availability. Read the Contract for complete details.

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

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