Forethought Index Bonus 115 is a single-premium deferred annuity contract that provides both fixed and indexed interest strategies. This annuity has a 10-year surrender charge duration, and comes with a provision for MVA (market value adjustment). The Index Bonus 115 annuity is built to help with retirement funding and any other long-term accumulations needs. There’s a 15% income bonus with a 6% Guaranteed Lifetime Income Account Value growth for the first 10 contract years.
Index Bonus 115 Facts
Issue Ages
The issue age for this policy is 0-85 years.
Minimum and Maximum Premiums
The minimum initial premium amount is $10,000.
The maximum initial premium amount is $1 million (for issue ages 0-80) and $500,000 for issues ages (81+).
Withdrawal Privileges
After the first contract anniversary, policy owners can withdraw up to 10% of their contract value without any applicable withdrawal charges. Past this threshold, any amount withdrawn is subjected to the surrender charge schedule.
| Contract Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11+ |
| Charge (in %) | 12 | 12 | 11 | 10 | 9 | 8 | 7 | 6 | 4 | 2 | 0 |
Premium Banding
The Index Bonus 115 annuity from Forethought (a Global Atlantic subsidiary) is banded. This means that the higher your premium amount, the more favourable the indexing caps that you receive (thus giving you more potential for interest).
- Low band – $10,000 – $25,999
- High band – $25,000 – $99,000
- Ultra band – $100,000
Interest Crediting Methods
At least 5 different interest crediting methods are available to choose from. These include a 1-year fixed rate, and other crediting options based on popular indexes such as the S&P 500.
Death Benefit
The annuity owner’s beneficiaries are awarded with a death benefit that’s equal to the full contract value.
Increased Death Benefit Guarantee Rider
This rider helps annuity investors ensure that the final death benefit amount is no less than their initial premiums (less withdrawals, plus 5% of premiums paid). The death benefit increases till the 85th birthday, or till the amount grows to 200% of the premiums paid.
Waivers Available
Both the nursing home and terminal illness waivers are available after the first contract anniversary.
Annuity Benefits
- Principal Protection – like most other fixed index annuities, the Index Bonus 115 offers potential for growth while at the same time protecting the principal from market run downs.
- Death Benefit Rider – for investors who are looking to pass wealth to their dependants, the Increased Death Benefit Guarantee Rider is a great way to ensure growth of this portfolio.
- Large Potential for Growth – with the 15% income bonus and guaranteed lifetime income growth of 6% for the first 10 contract years.
Get your Annuity Right
Fixed index annuities are meant for people who’re looking to put together a feasible financial plan for retirement income needs. If you’re interested in the Index Bonus 115 annuity or would like to compare it to other fixed index annuities, AnnuityBroker can help you make an informed annuity decision!
