Global Atlantic Forecare fixed annuity with LTC rider offers a 1-year fixed interest rate, and a 10-year surrender charge duration. This annuity product is tailored for individuals who’re looking to self-insure against the risk of long term care expenses. Forecare fixed annuity helps investors avoid a financial crisis if at all they’re faced with a health crisis that necessitates long term care. This annuity offers the benefits of a fixed annuities, such as income options, a death benefit, and tax deferral. Furthermore, it provides financial protection for long term care expenses that’s worth at least two or three times the value of your contract.
As of May 2017, the Forecare Fixed Annuity product from Global Atlantic was not available in the following states: NY, PR, and CT.
Forecare Fixed Annuity Facts
Long Term Care Rider
This fixed annuity is inclusive of a long term care rider that provides 2-3 times (depending on the underwriting eligibility) the contract value in long term care expenses cover. This coverage can only be spent on qualified LTC expenses up to a maximum monthly benefit. The LTC benefits do are not part of the contract value or death benefit. However, they adversely affect the amount of LTC coverage provided in the future.
There are monthly fees charged for the long term care rider. Thus, returns from this annuity are actually less than the declared interest rate.
Optional Riders
- Inflation protection benefit rider – this 5% annual compound interest inflation rider boosts the maximum monthly benefit provided to cover long term care expenses.
- Nonforfeiture benefit rider – this rider bonds the insurance company to provide continued LTC coverage.
Age Restriction
Only annuitants of age 80 years or below can buy the Forecare fixed annuity from Global Atlantic.
Minimum and Maximum Premiums
The minimum single premium possible with the Forecare annuity is $35,000, while the maximum allowed single premium amount is $400,000. The minimum single premium amount is higher in some states such as California and Oregon. Flexible premiums are not accepted.
Withdrawal Provisions
- Annuity owners can withdraw up to 10% of their contract value (as of the last contract anniversary) without any surrender charges or market value adjustments.
- Systematic withdrawals are available on a monthly frequency.
Death Benefit
If the Forecare annuity owner dies during the accumulation period, appointed beneficiaries receive a death benefit. This death benefit is equal to the contract value at the date when the company receives proof of death.
Potential Pros Global Atlantic Forecare
- Long Term Care Insurance – this is a traditional annuity product that also serves the purpose of providing coverage for long term care. It’s an ideal pick for individuals who need long term care but are not happy with the use-it-or-lose it approach of traditional LTC insurance.
- Non-reducing Contract Value – contract value does not reduce due to payment of long term care rider fees, even if the LTC fee exceeds the annuity’s interest earning rate.
- Death Benefit – if this policy is not used for long term care expenses, it’s value is passed to named beneficiaries as a death benefit.
Annuity Broker Hand Holding
Looking for more information on the Global Atlantic Forecare fixed annuity with LTC rider? Annuity Broker can help you compare the current market leading annuities, and make an informed choice based on your needs.
