ForeCertain is a single-premium, tax-deferred income annuity that’s offered by Forethought Life Insurance Company (a Global Atlantic subsidiary). This annuity is designed to provide a reliable stream income simply based on a portion of your savings. The guaranteed income that you receive from the contract will be determined by a) when you want to start receiving payments, b) how long you want to keep receiving payments, and c) if you want to receive the income alone, or jointly with your spouse. Since this annuity is SOLELY meant for income, it’s got no account balance, and no fees or charges. Depending on your lifespan and the income option you choose, the payouts you receive might be less than or more than the initial premium contribution.
Forethought ForeCertain Annuity Facts
Issue Ages
The issue ages for this annuity product is 90 years (85 for single/joint life only).
Premium Restrictions
The minimum single premium amount is $25,000, while the maximum single premium amount is $1 million. Pre-approval is required for premium payments that exceed the stated limits.
Income Options
Clients can choose from diverse, flexible income payouts:
- Guaranteed Payment Period (ranges between 5-30 years)
- Single/Joint Life Annuity
- Single/Joint Life Annuity with Cash Refund
- Single/Joint Life Annuity with Guaranteed Payment Period (ranges between 5 – 30 years)
- Single/Joint Life Annuity with Installment Refund
Advanced Payment Option
This ForeCertain annuity feature allows acceleration of payments for the upcoming 3-6 months (so that they’re paid as a lump sum).
Commutation
Investors can request a lump sum payment that’s equal to the value of all remaining guaranteed payments. The minimum commutation amount is $5000 (partial commutation).
Death Benefit
The death benefit paid out to beneficiaries will vary depending on the selected income option.
Optional Riders
- Annual Increase Option – increase income payouts by 2, 3, or 4 percent each year. Should be selected at contract issue, and is irrevocable.
- Temporary Return of Premium Death Benefit Rider – provides a Return of Premium death benefits on some contracts. Also, should be added at issue and cannot be revoked later.
- Assignment Limitation – prohibits sale, assignment, and such other transference of rights.
- Qualifying Longevity Annuity Contract (QLAC) – allows the contracts required distributions to be delayed.
Unique Benefits
- Highly Flexible – investors in the ForeCertain Income annuity can choose from diverse income options, and a ton of other features to customize their annuity terms.
- Accessibility – owners of the ForeCertain annuity can get all or a portion of their present value through an annuity feature identified as commutation.
- Offset Inflation – with the Annual Increase Option, annuity owners can choose to increase their income by 2, 3, or 4% each year, thus offsetting the impacts of inflation.
Annuity Broker Hand Holding
Interested in the ForeCertain Annuity from Forethought? If you’d like to receive more information or compare this product with other income annuities, get in touch with one of our annuity specialists and receive insightful advice right from the comfort of your home.
