Index Bonus 115. Fixed Index Annuity. Issued by Forethought Life Insurance Company

Transcription

1 Index Bonus 115 SM Fixed Index Annuity Issued by Forethought Life Insurance Company FIA1106 (5-16) Global Atlantic

2 Retirement is a time to change the pace. You can set aside the daily routine and do what you want, when you want. Whether your life in retirement will be leisurely or actively on the go, your retirement strategy should have a common goal. Your income must keep up with your needs. Let Index Bonus 115 show you how. SM

3 Change your pace with Index Bonus 115 fixed index annuity A fixed index annuity (FIA) may be the savings strategy you seek, if you are looking for: Protection for your money without the erratic ups and downs of the stock market Potential for greater interest crediting than traditional interest accounts offer Among people who share these sentiments, FIAs offer a well balanced blend of protection and potential. FIAs are long-term insurance products for retirement. Purchasing an FIA offers some potential advantages over equity investing and traditional interest-bearing accounts 1. FIAs provide: Interest crediting that can be fixed or linked to the performance of an equity index Protection against losses from poor savings performance Tax-deferred accrual of interest earnings Death benefit proceeds that transfer directly to beneficiaries By offering the ability to link interest crediting to an equity index, such as the S&P 500, FIAs provide greater interest crediting potential than traditional interest-based products. FIAs are for long-term saving purposes, not for short-term needs. Withdrawals during the early years may incur charges assessed as a percentage of the withdrawal, known as surrender charges, unless they are received through an income benefit feature. These charges vary by product. FIAs are insurance contracts, not securities, and do not directly participate in any stock, bond or equity savings. Contract owners are not purchasing shares of any stock or index, even though index performance may indirectly affect contract values. Index-based crediting methods may experience years with 0% crediting and are subject to a cap or spread. A fixed crediting method is also available. Index Bonus 115 is a single-premium product. 1 Traditional deposit products are FDIC insured. Fixed index annuities are not FDIC insured and guarantees are based on the claims-paying ability of the issuing company. 2

4 Kick up your income Index Bonus 115 may be ideal for clients who: Plan to retire within 10 years Want a guaranteed lifetime income stream Are looking for greater interest crediting potential, without market risk Believe in the potential of equity index-based performance Are comfortable knowing interest crediting may not be guaranteed Here s an example of how the Income Base 1 growth works based on a premium deposit of $100,000, assuming no withdrawals and no prior income activation. Start Day 1 Years 2-11 Activity Initial Premium Activity Income bonus 1 = 15% of premium Activity Income base = 6% of Income Base compounded annually Income Base Value $100,000 Income Base Value 2 $115,000 Income Base Value 2 $205,947 Guaranteed Lifetime Income Benefit (GLIB) is included for an annual charge of 0.95% and calculated using the contract value as of the prior contract anniversary and is deducted monthly from the contract value. The Index Bonus 115 FIA includes the Guaranteed Lifetime Income Benefit (GLIB) at an annual cost of 0.95% of the contract value as of the previous contract anniversary and is deducted monthly from the contract value. The GLIB provides a separate value called the Income Base (contractually known as the Guaranteed Lifetime Income Account Value), which is used solely for calculating your annual guaranteed lifetime income amount. The Income Base has no cash value. Your guaranteed lifetime income amount will be a percentage of your Income Base determined by your age at the time you begin income. This is known as your Income Benefit Factor. You continue to receive the guaranteed lifetime income amount even after the contract value is depleted. 3 Contract value continues to receive interest credits even after you elect to begin the GLIB. Your Income Base is guaranteed to grow at a rate of 6% per year at each contract anniversary for the first 10 years (assuming no withdrawals), or until you elect the Guaranteed Lifetime Income Benefit, if earlier. After that time, the Income Base will no longer grow. 1 The Income Base and Income Bonus are not available on cash surrender or as death benefits. 2 Assuming no prior withdrawals and no prior income activation. 3 Assumes no excess withdrawals. 3 Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and assume compliance with the product s benefit rules, as applicable.

5 What s my Income Benefit Factor? INCOME BENEFIT FACTORS Single Life Level Income Single Life with Cost of Living Increase 4 Joint Life Level Income 5 Joint Life with Cost of Living Increase 4,5 Attained Age at Option Date Current Company Declared Rates 6 (guaranteed at issue for at least 13 contract months) % 3.50% 3.50% 2.50% % 4.50% 4.50% 3.50% % 5.50% 5.50% 4.50% Contract Age Guaranteed Minimum Rates (all ages) % 3.50% 3.50% 2.50% % 2.50% 2.50% 1.50% Protect your savings against potential loss during market downturns, and guarantee your money will be there for you when you need it. Principal Protection: 100% of the money with which you purchase your annuity is credited to your contract value. This money (less deductions for rider charges, withdrawals, withdrawal charges, and market value adjustments) is 100% guaranteed if held to the end of the withdrawal charge period (10 full years). Death Benefit: Your beneficiaries are eligible to receive a death benefit equal to the full contract value, without incurring any withdrawal charges or applicable market value adjustments. The standard death benefit allows your beneficiaries to receive a lump sum payment or a stream of payments over a specified period of time. Increased Death Benefit Guarantee Rider: 7 You also have the option to guarantee that your death benefit is equal to no less than your initial premium paid less withdrawals, plus 5% of premium less withdrawals for each full contract year completed. This increased death benefit guarantee factor increases until you reach age 85, or until the rider s death benefit is equal to 200% of premium paid (reduced for withdrawals), whichever comes first. Included Waiver Riders 8 Nursing Home Waiver: 9 At any time on or after the first contract anniversary, if you should become confined to an approved nursing facility for at least 60 consecutive days, withdrawal charges on any portion of the contract value withdrawn will be waived. Terminal Illness Waiver: Should you suffer from a terminal illness, withdrawal charges will be waived on any portion of the contract value withdrawn after the first contract anniversary. 4 2% annual cost of living increases begin on the second anniversary following activation of the benefit and end once the contract value is depleted. 5 The age of the younger person at the time of benefit election determines the Joint Life Income Benefit factor. Only legal spouse at time of benefit election is eligible for spousal continuation. 6 Company declared Income Benefit Factors effective February 1, These factors are subject to change. The income benefit factors at contract issue are guaranteed to remain the same for at least 13 contract months. Factors may change in the 14th contract month and beyond, subject to guaranteed minimums described above. Once an income option is selected, the income benefit factor is guaranteed for life. 7 Increased Death Benefit Guarantee Rider may be added at issue only for an additional charge. Available for issue ages Applies only to the owner of the contract. Not available in the states of IA, NJ, OR, PA and WA. 8 Receipt of proof as identified in the waiver riders attached to the annuity contract is required in order to qualify for these benefits. 9 Referred to as the Confinement Waiver Rider in CT. Subject to state availability. Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and assume compliance with the product s benefit rules, as applicable. 4

6 Index Bonus 115 Facts Issue ages: 0-85 Minimum premium amount: $10,000 minimum initial premium $1,000,000 maximum total household premium for ages 0-80 (as measured by total contribution per household for all Global Atlantic products) $500,000 maximum total premium for ages (as measured by total contribution per household for all Global Atlantic products) Available plan options: Non-qualified, IRA, Roth IRA 10 Surrender charge schedule: 11, 12 Surrender charges apply to amounts withdrawn in excess of the free withdrawal amount during the first 10 contract years. The free withdrawal amount is 10% of the contract value as of the previous contract anniversary, available after the first contract year (except in year of full surrender). Year Charge 12% 12% 11% 10% 9% 8% 7% 6% 4% 2% 0% Premium banding Index Bonus 115 is banded, which means the greater your premium amount, the more favorable index caps you receive, giving you more credited interest potential. Low Band: $10,000-$24,999 High Band: $25,000-$99,999 Ultra Band: $100,000 plus Available interest crediting methods*, 12 One of the key benefits of an FIA is the potential to provide additional interest crediting above and beyond a traditional interest-bearing product, such as a savings account. 13 Index Bonus 115 offers five interest crediting methods. You can allocate your funds between one or multiple methods. See the accompanying Interest Crediting Methods brochure for more information. One-Year Fixed Rate Annual Point-to-Point with Cap Based on S&P 500 Monthly Point-to-Point with Cap Based on S&P 500 BlackRock Diversa TM Volatility Control 10 Two-Year Point-to-Point With Spread Indexed Strategy Barclays ARMOUR II Volatility Control 11 Three-Year Point-to-Point With Spread Indexed Strategy * There is a minimum of $5,000 per crediting method. The premium can be divided among multiple crediting methods. 5 Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and assume compliance with the product s benefit rules, as applicable. 10 If you are investing in a fixed index annuity through a tax-advantaged retirement plan such as an IRA, you will receive no additional tax advantage from a fixed index annuity. Under these circumstances, you should only consider buying a fixed index annuity if it makes sense because of the annuity s other features, such as lifetime income payments and death benefit protection. 11 A free withdrawal followed by a complete surrender in the same contract year will result in the charge being applied to the amount previously taken as free and the remaining contract value withdrawn. State variations apply. 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. 12 State variations may apply. 13 Traditional deposit products are FDIC insured. Fixed Index Annuities are not FDIC insured and guarantees are based on the claims-paying ability of the issuing company. 14 Formally known as BlackRock ibld Diversa TM VC7 ER Index 15 Formally known as Barclays ARMOUR II Gross USD 7% ER Index

7 Global Atlantic Financial Group Global Atlantic Financial Group, through its subsidiaries, offers a broad range of retirement, life and reinsurance products designed to help our customers address financial challenges with confidence. A variety of options help Americans customize a strategy to fulfill their protection, accumulation, income, wealth transfer and end-of-life needs. Global Atlantic was founded at Goldman Sachs in 2004 and separated as an independent company in Its success is driven by a unique heritage that combines deep product and distribution knowledge with insightful investment and risk management, alongside a strong financial foundation.

8 globalatlantic.com Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and assume compliance with the product s benefit rules, as applicable. 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. Index Bonus 115 fixed index annuity is issued by Forethought Life Insurance Company, 300 North Meridian Street, Suite 1800, Indianapolis, Indiana. Available in most states with contract FA2001SPDAX-01, FA2001SPDAXL-01 and ICC13-FA2001SPDAX-01 (certificate series GA2001SPDAX-01, as applicable). Read the contract for complete details. Products and features are subject to state availability. Products and features are subject to state availability and variations. Read the Contract for complete details. 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 will reduce the death benefit and any optional guaranteed amounts in an amount more than the actual withdrawal. If you are investing in a fixed index annuity through a tax-advantaged retirement plan such as an IRA, you will receive no additional tax advantage from a fixed index annuity. Under these circumstances, you should only consider buying a fixed index annuity if it makes sense because of the annuity s other features, such as lifetime income payments and death benefit protection. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ( SPDJI ) and has been licensed for use by Forethought Life Insurance Company. Standard & Poor s, S&P and S&P 500 are registered trademarks of Standard & Poor s Financial Services LLC ( S&P ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Forethought Life Insurance Company. Forethought Fixed Index Annuity is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or any of their respective affiliates (collectively, S&P Dow Jones Indices ). S&P Dow Jones Indices makes no representation or warranty, express or implied, to the owners of the Forethought Fixed Index Annuity or any member of the public regarding the advisability of investing in securities generally or in Forethought Fixed Index Annuity particularly or the ability of the S&P 500 Index to track general market performance. S&P Dow Jones Indices only relationship to Forethought Life Insurance Company with respect to the S&P 500 Index is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices or its licensors. The S&P 500 Index is determined, composed and calculated by S&P Dow Jones Indices without regard to Forethought Life Insurance Company or the Forethought Fixed Index Annuity. S&P Dow Jones Indices have no obligation to take the needs of Forethought Life Insurance Company or the owners of Forethought Fixed Index Annuity into consideration in determining, composing or calculating the S&P 500 Index. S&P Dow Jones Indices is not responsible for and has not participated in the determination of the prices, and amount of Forethought Fixed Index Annuity or the timing of the issuance or sale of Forethought Fixed Index Annuity or in the determination or calculation of the equation by which Forethought Fixed Index Annuity is to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing or trading of Forethought Fixed Index Annuity. There is no assurance that investment products based on the S&P 500 Index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice. Notwithstanding the foregoing, CME Group Inc. and its affiliates may independently issue and/or sponsor financial products unrelated to Forethought Fixed Index Annuity currently being issued by Forethought Life Insurance Company, but which may be similar to and competitive with Forethought Fixed Index Annuity. In addition, CME Group Inc. and its affiliates may trade financial products which are linked to the performance of the S&P 500 Index. S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P 500 INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY FORETHOUGHT LIFE INSURANCE COMPANY, OWNERS OF THE FORETHOUGHT FIXED INDEX ANNUITY, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND FORETHOUGHT LIFE INSURANCE COMPANY, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES. BlackRock, Inc. and its affiliates ( BlackRock ) is not the issuer or producer of any annuity product associated with Forethought Life Insurance Company and BlackRock has no responsibilities, obligations or duties to purchasers of such products. The BlackRock ibld Diversa TM VC7 ER Index is a product of BlackRock Index Services, LLC and has been licensed for use by Forethought Life Insurance Company. BLACKROCK, BlackRock ibld Diversa TM VC7 ER Index, and the corresponding logos are registered and unregistered trademarks of BlackRock. While Forethought Life Insurance Company may for itself execute transactions with BlackRock in or relating to the BlackRock ibld Diversa TM VC7 ER Index in connection with its annuity products purchasers acquire all such annuity products from Forethought Life Insurance Company and neither acquire any interest in the BlackRock ibld Diversa TM VC7 ER Index nor enter into any relationship of any kind with BlackRock upon purchasing such products. Forethought annuity products are not sponsored, endorsed, sold or promoted by BlackRock. BlackRock makes no representation or warranty, express or implied, to the owners of any Forethought annuity product or any member of the public regarding the advisability of purchasing such products nor does it have any liability for any errors, omissions or interruptions of the BlackRock ibld Diversa TM VC7 ER Index. BlackRock shall not be liable in any way to the issuer, purchasers, or any other party in respect of the use or accuracy of the BlackRock ibld Diversa TM VC7 ER Index or any data included therein. Barclays ARMOUR II Volatility Control Index is a trademark of Barclays Bank PLC or its affiliates and has been licensed for use in connection with the issuance and distribution Index Bonus 115. Index Bonus 115 is not sponsored by, endorsed, sold or promoted by Barclays, and Barclays makes no representation regarding the advisability of purchasing Index Bonus 115. Barclays Capital Inc. and its affiliates ( Barclays ) is not the issuer or producer of Index Bonus 115 and Barclays has no responsibilities, obligations or duties to purchasers of Index Bonus 115. The Barclays ARMOUR II Volatility Control Index is a trademark owned by Barclays Bank PLC and licensed for use by Forethought Life Insurance Company as the Issuer of Index Bonus 115. While Forethought Life Insurance Company may for itself execute transaction(s) with Barclays in or relating to the Barclays ARMOUR II Volatility Control Index in connection with Index Bonus 115, purchasers acquire Index Bonus 115 from Forethought Life Insurance Company and purchasers neither acquire any interest in Barclays ARMOUR II Volatility Control Index nor enter into any relationship of any kind whatsoever with Barclays upon purchasing Index Bonus 115. Index Bonus 115 is not sponsored, endorsed, sold or promoted by Barclays and Barclays makes no representation regarding the advisability of the Index Bonus 115 or use of the Barclays ARMOUR II Volatility Control Index or any data included therein. Barclays shall not be liable in any way to the Issuer, purchasers, or to other third parties in respect of the use or accuracy of Barclays ARMOUR II Volatility Control Index or any data included therein. FIA1106 (5-16) Global Atlantic