Forethought Choice Income is a single-premium fixed index annuity that offers guaranteed withdrawal benefit for investors who are looking to net a predictable lifetime income in their retirement years. Choice Income annuity also offers a GMSV (Guaranteed Minimum Surrender Value) that may boost up your contract value after the withdrawal charge duration, and that may serve as a minimum death benefit.
Choice Income Annuity Facts
Issue Ages
50-85 years
Min. and Max. Premiums
$25,000 is the stated minimum premium amount. The maximum premium amount is $1 million for annuitants at most 80 years old, and $500,000 for annuitants over 80 years old.
Interest Crediting Methods
Investors in the Choice Income fixed index annuity can choose from 1 fixed strategy and 4 index-based strategies based on popular indices such as the S&P 500.
GLWB – Guaranteed Lifetime Withdrawal Benefit
The GLWB feature is included at policy issue, but annuitants must be age least 55 years old in order to activate. The GLWB provides income through yearly guaranteed lifetime withdrawal amounts, otherwise knowns as LAP (Lifetime Annual Payments). LAP is calculated as a percentage of the withdrawal base, and 2 options are available:
- 10% – minus withdrawals, interest credits not added.
- 5% PLUS – additional interest credits for the year added, minus withdrawals.
Choice Income Annuity Fees
The Guaranteed Lifetime Withdrawal Benefit that’s automatically included at issue of this fixed indexed annuity has an annual fee of 1.05% the Withdrawal Base. Other fees are applicable.
Withdrawals
Annuitants can withdraw up to 10% of start-of-year contract value without incurring any withdrawal fees. Any amount withdrawn in excess of this threshold (10%) is subjected to the following withdrawal charge schedule.
| Contract Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Charge (in %) | 9 | 8 | 7 | 6 | 5 | 4 | 3 | 2 | 1 | 0 |
Death Benefit
The remaining contract value is passed to appointed values without no charges.
Other Benefits
This fixed index annuity automatically provides the nursing care and terminal illness waivers.
Need to compare this annuity?
Need to compare this annuity with other annuity products? Talk to one of our annuity specialists who can put into consideration your specific parameters and help you arrive at the best possible annuity product for your needs! Get in touch here.
