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Available benefits can help you focus on any of three key retirement strategies:
Using either Daily 6 or Daily +4, capture new contract value highs on a daily basis for the purpose of calculating future income. Daily 6 guarantees a 6% minimum amount of growth of the benefit value applied for income calculation each year, for up to 10 years or until your first withdrawal. Daily +4 guarantees 4% growth in addition to the market step-ups for up to 10 years or until your first withdrawal. These optional features can help you live with guaranteed withdrawals for lifetime income that can grow based on favorable investment performance. The benefit value is used solely for income calculation and is not an accessible lump-sum value. Both features are offered for an additional charge.
Electing Legacy LockTMII alongside either Daily 6 or Daily +4 withdrawal benefit gives you all of the features of the Live Strategy while also helping to protect your legacy. Typical annuity death benefits reduce as you make withdrawals. With Legacy Lock II, withdrawals within your income benefit’s limits do not reduce the death benefit. So you can “live” with guaranteed withdrawals for lifetime income and still have the potential to “give” a legacy through death benefit proceeds equal to the amount of premium you invested, provided each rider’s benefit rules are followed.* Legacy Lock II is available at an additional cost and only in combination with an optional income rider.
ForeRetirement is available in three share classes, B, C and L. The share classes differ in the fees, duration of the surrender charge period and how the sales charges are structured.
* Important Note: A variety of factors — including withdrawals, underperformance and fees — can reduce the contract value. When purchased alongside an optional living benefit, should the contract value be less than the greater of either one Lifetime Annual Payment or the minimum contract value, the death benefit reverts to traditional return of premium, and is reduced by all past and future withdrawals. The Legacy Lock II step-up would also no longer apply. You may need to choose between an unreduced death benefit and continued withdrawals should the contract value approach the required minimum. When not paired with an optional living benefit, you may need to discontinue withdrawals in order to maintain an unreduced benefit as any withdrawal that reduces the contract value below the minimum contract value will terminate the contract and death benefit.
All guarantees are based on the claims-paying ability of Forethought Life Insurance Company and assume compliance with the benefit rules.
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.
The ForeRetirement Variable Annuity is available in multiple share classes, which each have different fees and charges as described in the prospectus. Your financial professional’s commission may also differ depending upon the share class selected. You should discuss which share class is right for you with your financial professional based on the available options. Important share class considerations include, but are not limited to, your investment holding period and investment flexibility.
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.
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.
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 money. You can obtain a prospectus from your financial advisor or by clicking here.
Variable annuities are issued by Forethought Life Insurance Company and are underwritten and distributed by Forethought Distributors, LLC.
Products and optional features are subject to state and firm availability.