Choice Income II

Need to Know

Who: Clients age 45-85

Benefit: A retirement savings strategy which offers upside potential with downside market protection.

Min. issue: $25,000

Max. issue: $1 million 50-80; $500,000 81-85

Surrender charge period: Seven and ten8 years

 

 

Give your clients lifetime income with built-in help for the unpredictable

Choice Income is a fixed index annuity that offers both upside potential and downside market protection. The Guaranteed Lifetime Withdrawal Benefit (GLWB) provides two options for building lifetime income, including a way to continue growing while in retirement, for an annual fee of 1.05%.

The Guaranteed Income Builder Benefit is a way to grow the Withdrawal Base by a guaranteed 8% roll-up, also known as Deferral Bonus, every year before income is taken.1,2

The Income Multiplier Benefit is a way to grow the Withdrawal Base by linking to the interest credited to the contract value.1 Before income is taken, 2X the amount of the interest credits the contract value earns is added to the Withdrawal Base. After income is taken, 1X the interest credit is added to the withdrawal base, during a bonus period.3,4

Choice Income also features the Income Enhancement Benefit.5 This built-in benefit provides your clients with double income, for up to five years6, if they face healthcare needs and are certified by a healthcare professional as being unable to perform at least two of the six Activities of Daily Living (ADLs).6 Once the income enhancement benefit ends, their income continues at the original guaranteed amount.

Income is provided through annual guaranteed lifetime withdrawal amounts, known as Lifetime Annual Payments (LAP). The LAP amount is based on age upon activation and whether single or joint life is elected. Choice Income offers joint income for spouses, for 0.50% less of the stated lifetime withdrawal percentage for single income.

 

Marketing Resources

Client Brochure

 

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Product Details
Flyer

 

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Rising Income Case Study

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Spousal Income Case Study

 

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Two-Stage Case Study

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Income Essentials Case Study

 

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Marketing Tools

 

Access Choice Income II
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Client Supplemental

Index Brochures

BlackRock Diversa™ Volatility Control Index 
Franklin US Index 
MSCI EAFE Index 
PIMCO Balanced Index 
Russell 2000 Index 
S&P 500® Index

 

Interest Crediting Strategy Flyers

One-Year Monthly Point-to-Point with Cap   
One-Year Point-to-Point with Cap  
One-Year Point-to-Point with Participation Rate 
One-Year Point-to-Point with Performance Trigger  
Two-Year Point-to-Point with Spread 
One-Year Fixed Rate 
Bailout Provision 

 

 

Franklin US Index

 

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BlackRock DiversaTM
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Products

1 For contracts issued prior to age 50, the Deferral Bonus and Withdrawal Base increases will not apply until the first contract anniversary following attainment of age 50 and the benefit fees will not be assessed until the first contract anniversary following attainment of age 50. Upon the contract anniversary following the attainment of age 50, the first Deferral Bonus will be applied and benefit fees will be assessed. The Withdrawal Base and Deferral Bonus Base will initialize at the contract value on the contract anniversary prior to 50th birthday. For Joint owned contracts, the youngest owner’s age is used.

2 Percentage shown is of the premium paid, reduced for any withdrawals in proportion to the reduction in contract value and applied to the withdrawal base only. Prior to activating the benefit, a Deferral Bonus will not be credited in years where a withdrawal occurs. The withdrawal base is used to determine the withdrawal benefit and is not available for cash surrender or as a death benefit. Withdrawal base stops growing after income benefit activation for this growth option.

3 Withdrawal Base increases are a multiple of the dollar amount of interest credits to your account value in a given year. Prior to activating the benefit, a Deferral Bonus will not be credited in years where a withdrawal occurs. After activation, a bonus will not be credited in years where withdrawals exceed the Lifetime Annual Payment. No bonus will be credited after the Income Phase Bonus Period. The Income Phase Bonus Period is the period during which LAP withdrawals continue to be deducted from the contract value.

4 Interest credits received are based on the interest crediting strategy selected. There is the potential for 0% crediting during any strategy term.

5 Not available in California. The Rider is not long-term care insurance and is not intended to replace such coverage. It is referred to as the Annual Payment Accelerator Rider in the contract. The benefit is available only if your contract value is above the minimum allowed under the Income Enhancement Benefit. Once a benefit period ends, a new benefit period is no longer available. The Income Enhancement Benefit can be used one time only per contract. Available for ages 75 or younger. Recertification by a healthcare professional is required prior to years three, four, and five, if applicable. There is a one-year waiting period and 90 day elimination period prior to receiving benefits.

6 The benefit is available only if your contract value is above the minimum allowed under the Income Enhancement Benefit. Once a benefit period ends, a new benefit period is no longer available.

7 Activities of Daily Living (ADLs) are identified as bathing, eating, continence, toileting, dressing and transferring.

8 In CA the withdrawal charge schedule is 9,8,7,6,5,4,3,2,1,0%

 

This material is intended to provide educational information regarding the features and mechanics of the product and is intended for producer use only. It should not be considered, and does not constitute, personalized investment advice. The issuing insurance company is not an investment adviser nor registered as such with the SEC or any state securities regulatory authority. It’s not acting in any fiduciary capacity with respect to any contract and/or investment.

 

 

Guarantees are based on claims-paying ability of Forethought Life Insurance Company and subject to compliance with benefit rules.

A fixed index annuity is intended for retirement or other long-term needs. It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. A fixed index annuity is not a registered security or stock market investment and does not directly participate in any stock or equity investments or index.

This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult a tax or legal counsel for advice.

Taxable distributions (including certain deemed distributions) are subject to ordinary income taxes, and if made prior to age 59½, may also be subject to a 10% federal income tax penalty. Payments from IRAs are taxable in accordance with the normal rules surrounding taxation of payments from an IRA. Early surrender charges may also apply. Withdrawals may reduce any optional guaranteed amounts in an amount more than the actual withdrawal. This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult a tax or legal counsel for advice.

Choice Income II fixed index annuity is issued by Forethought Life Insurance Company, 10 West Market Street, Suite 2300, Indianapolis, Indiana. Choice Income is available with Contract FA1801SPDA-01 and ICC17-FA1801SPDA-01 and rider forms FA4101-01, ICC17-FA4101-01, FA4106-01, ICC17-FA4106-01, FA4107-01, ICC17-FA4107-01, FA4108-01, ICC17-FA4108-01, FA4109-01, ICC17-FA4109-01, FA4110-01, ICC17-FA4110-01, FA4116-01, ICC17-FA4116-01, FA4111-01, ICC17-FA4111-01, FA4112-01, ICC17-FA4112-01, FA4102-01 v2, ICC17-FA4102-01, FA4104-01 v2, ICC17-FA4104-01, FA4115-01, ICC17-FA4115-01, ICC14-FL-FIANC, FL-FIANC-13, ICC14-FL-FIATI and FL-FIATI-13.

Products and features are subject to state availability and variations. Read the Contract for complete details.

Global Atlantic Financial Group (Global Atlantic) is the marketing name for Global Atlantic Financial Group Limited and its subsidiaries, including Forethought Life Insurance Company and Accordia Life and Annuity Company. Each subsidiary is responsible for its own financial and contractual obligations. These subsidiaries are not authorized to do business in New York.

Indices are not available for direct investment.

FOR PRODUCER USE ONLY. NOT FOR USE WITH THE PUBLIC.

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