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Available benefits can help you focus on any of three key retirement strategies:
Daily Lock Income Benefit℠ will capture new contract value highs on a daily basis for the purpose of calculating future income. Annual Lock Income Benefit℠ captures annual highs to help grow your future income. Both options also guarantee 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. 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 Lock℠ alongside an income 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, 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 is available at an additional cost and only in combination with an optional income rider.
With Maximum Daily Value, your highest daily contract value is locked in for your beneficiaries. That means that beneficiaries will receive the highest value your contract attained, even if it experiences investment losses after. Withdrawals will reduce the death benefit, though.
Other options include Maximum Anniversary Value, which preserves the high contract value on a contract anniversary as your death benefit, and Return of Premium, which prevents your death benefit from dropping below the amount of premium you’ve invested. These optional death benefits are also reduced by withdrawals. All optional death benefits are available at an additional cost.
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.
* Legacy Lock is only available if purchased alongside either Daily Lock Income Benefit or Annual Lock Income Benefit within the ForeRetirement variable annuity. You may need to choose between an unreduced death benefit and continued withdrawals if the contract value is reduced to be less than or equal to one guaranteed withdrawal. Should the contract value be less than or equal to one guaranteed withdrawal, the death benefit reverts to traditional return of premium and is reduced by withdrawals. If applicable, the Legacy Lock step-up would also no longer apply.
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.
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 Connecticut, 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.