ForeAccumulation from ForeThought (a Global Atlantic subsidiary) is a fixed index annuity that includes a GMAV (Guaranteed Minimum Accumulation Value). The annuity’s GMAV can potentially boost your contract at the first of: a) the owner’s death, or b) the end of the selected withdrawal charge period (can be 6 or 8 years). This annuity product is meat for investors who are looking for savings growth potential with protection.
ForeThought ForeAccumulatioon Annuity Facts
Issue Ages
The issue ages for this annuity product is 0-85 years.
Minimum and Maximum Premiums
The minimum premium amount is $25,000.
The Maximum premium amounts are:
- Ages 0-80 years – $1 million
- Ages 81+ – $500,000
GMAV – Guaranteed Minimum Accumulation Value
This is a separate value that’s tracked separately from the contract’s value. If you wait till the end of the withdrawal charge duration without taking any withdrawals, your contract value will be compared to the GMAV, and you’ll receive the larger of the two. However, if you withdraw during the withdrawal charge duration, the GMAV equals to zero and automatically terminates.
Withdrawal Charges
Investors in the ForeAccumulation annuity may withdrawal up to 10% of their contract value without any charges annually. Amounts withdrawn above the 10% threshold are subjected to withdrawal charges according to either a 6-year or an 8-year withdrawal charge duration (based on what the annuity owner elected).
Nursing Care Waiver
Annuity owners can access their contract value without being subjected to any withdrawal charges if they’re confined to a nursing facility for a period of time not less than 90 consecutive days.
Terminal Illness Waiver
If an annuity owner suffers from a terminal illness after the first contract anniversary, they’re allowed to access their contract value free of any withdrawal charges.
Death Benefit
The remaining value of the contract is passed to elected beneficiaries with no additional charges upon the annuity owner’s demise.
Possible Advantages
- Unlike many other annuities, where the nursing care waiver is only available after the first contract anniversary, investors can access this waiver immediately on or after the issue date of the policy.
- Guaranteed Minimum Accumulation Value (GMAV) – for investors who do not take withdrawals within the withdrawal charge duration, the GMAV can potentially boost the contract value.
- Flexible Investment – investors can choose from various interest crediting features, and customize their investment to their preferences.
Annuity Broker Hand Holding
If you’d like to learn more about this annuity, or compare it to other fixed index annuities, get in touch with one of our annuity product pros.
