Income 150+ SM Fixed Index Annuity Issued by Forethought Life Insurance Company FIA1086 (05-16) 100331-3 2016 Global Atlantic
Your morning routine can last all day. Retirement is a special time when the daily grind can finally grind to a halt. It s your time for doing what you want, when you want even if it s just enjoying your morning coffee all afternoon. But this freedom comes at a price that only a robust income strategy can help you afford. Like most Americans nearing retirement, you ve worked hard for decades and achieved a standard of living that you want to maintain through your golden years. But perhaps you find yourself concerned that you may not have saved enough to sustain the predictable income stream you ll need. So what can you do?
Perk up your retirement SM with Income 150+ fixed index annuity. A choice blend of protection and potential 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 deposit products 1 offer Among people who share these sentiments, FIAs offer a well balanced blend of protection and potential. FIAs are longterm insurance products for retirement. Purchasing an FIA offers some potential advantages over equity investing and traditional deposit products 1. FIAs provide: > Interest crediting that can be fixed or linked to the performance of an equity index or multi-asset index > Protection against losses from poor investment 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 or multi-asset index, such as the S&P 500, FIAs provide greater interest crediting potential than traditional deposit products 1. 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 investment. 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. Though crediting is determined, in part, by the performance of an equity index, the credited rate is typically subject to a cap or a spread. Additional benefits vary by product and may be subject to charges. Indices are not available for direct investment. 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
Income 150+ may be ideal for people who: > Plan to retire within five years > Want a guaranteed lifetime income stream > Are looking for greater interest crediting potential, without market risk 1 > Believe in the potential of equity index-based performance > Are comfortable knowing interest crediting may not be guaranteed The income benefit is provided at a cost of 0.95% of the income base, deducted from the contract value at the beginning of each contract year. A robust income strategy Income 150+ offers all of the interest crediting potential and savings protection of a typical FIA. What sets Income 150+ apart is its ability to help provide a robust income strategy for your retirement needs. The bold benefits of Income 150+ Income 150+ works for your retirement, so your income savings percolate to perfection. Income is driven by a unique value within the contract that is separate from the contract value, known as the Income Base. The Income Base receives guaranteed growth before income starts, so that your income can grow more predictably. This guaranteed growth applies only to the Income Base. Contract value is not guaranteed to grow. Here s an example of how the income bonus crediting works based on a premium deposit of $100,000, assuming no withdrawals. Day 1 Start of Year 3 Start of Year 5 Activity Income boost #1 = $20,000 20% of premium Activity Income boost #2 = $15,000 15% of premium* Activity Income Base Growth Income Base Growth Income Base Growth Income boost #3 = $15,000 15% of premium* Income Base Value $120,000 Income Base Value $135,000 Income Base Value $150,000 * Premium value assumes income has not started and withdrawals have not been made. The income base and income boosts are not available on cash surrender or as death benefits. If held until the beginning of the fifth year without starting income, the Income Base will be equal to 150% of your premium amount as a basis to determine the annual income, assuming no prior withdrawals. The Income Base is used for the calculation of the guaranteed lifetime income amount. It may not be surrendered, like the contract value. 2 If your contract value, multiplied by the Income Benefit Factor, is greater than the guaranteed lifetime income amount at any anniversary after you start receiving income benefit payments, the guaranteed lifetime income amount automatically increases to that amount. 1 Market value adjustments may apply. 2 Withdrawals taken prior to beginning income benefits and those greater than the guaranteed lifetime income amount will reduce the Income Base and guaranteed lifetime income amount. The reduction will be proportionate to the resulting reduction in the contract value, which may reduce the Income Base more than the amount withdrawn. 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.
+ sweetener? The plus comes into play to help sweeten your income benefits even further if you find you don t need to start them within five years. Maybe you are in good shape for your initial retirement years, or maybe you have decided to put retirement off a bit. At the start of the tenth contract year, the Income Base may grow by another boost. It s calculated by multiplying the interest earned on the contract value over the first nine years by 150%. Both the Income Base and interest earned are adjusted for any withdrawals. Selected Income Benefit Factors Age upon start Single life Income Joint life Income 3 Hypothetical Income Base Value $210,000 $40,000 $60,000 Interest credit boost (1.5x interest earned years 1-9) $50,000 Income Boosts (Years 1-5) 55 3.70% 3.20% 56-57 3.80% 3.30% 58-59 3.90% 3.40% 60 4.00% 3.50% Income Benefit Factors increase by 0.10% for each attained age between 60 and 85. $100,000 Initial Premium 65 4.50% 4.00% 75 5.50% 5.00% 85 6.50% 6.00% Income Benefit Factors increase by 0.20% for each attained age between 85 and 90. 90+ 7.50% 7.00% Once benefits begin, the Income Benefit Factor is locked. Income benefit payments are not subject to surrender charges or market value adjustment. Assumes no prior income activation or withdrawals. Your income outcome Once you retire and need access to income, you can count on Income 150+. Your annual guaranteed income benefit amount will equal a percentage, known as the Income Benefit Factor, of your Income Base. The Income Benefit Factor varies based on age at the time you start receiving guaranteed income benefit payments. Using these sample factors and the rules to the left, you can determine the Income Benefit factor for any age. 4
Available interest crediting methods 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. 1 Income 150+ offers five interest crediting methods. You can allocate your funds between one or multiple methods. 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 2 Two-Year Point-to-Point With Spread Indexed Strategy Barclays ARMOUR II Volatility Control 3 Three-Year Point-to-Point With Spread Indexed Strategy See the accompanying Interest Crediting Methods brochure for more information. Awaken your retirement dreams When your dreams of retirement need an extra jolt to come to life, let Income 150+ help. With an enhanced income amount that you can really count on, retirement dreams can come closer to reality. Income 150+ gives you a compelling tool to help ensure that your retirement is a rewarding chapter of your life. 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 Formally known as BlackRock ibld Diversa TM VC7 ER Index 3 Formally known as Barclays ARMOUR II Gross USD 7% ER Index 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
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 2013. 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. globalatlantic.com 6
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. Income 150+, fixed index annuities are issued by Forethought Life Insurance Company, 300 North Meridian Street, Suite 1800, Indianapolis, Indiana. Forethought Life Insurance Company is a subsidiary of Global Atlantic Financial Group Limited. Available in most states with Contract FA1201SPDAX-01, FA1201SPDAX-02, ICC11- FA1201SPDAX-01 and FA1201SPDAXL-02 (certificate series GA1201SPDAX-02, as applicable). 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 Income 150+. Income 150+ is not sponsored by, endorsed, sold or promoted by Barclays, and Barclays makes no representation regarding the advisability of purchasing Income 150+. Barclays Capital Inc and its affiliates ( Barclays ) is not the issuer or producer of Income 150+ and Barclays has no responsibilities, obligations or duties to purchasers of Income 150+. 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 Income 150+. 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 Income 150+, purchasers acquire Income 150+ 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 Income 150+. Income 150+ is not sponsored, endorsed, sold or promoted by Barclays and Barclays makes no representation regarding the advisability of the Income 150+ 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. Indices are unmanaged and not available for direct investment. FIA1086 (05-16) 100331-3 2016 Global Atlantic