How does ForeIncome FIA work? Your ForeIncome FIA contains two different buckets: one for your contract value and another for the Withdrawal Base. The contract value is your annuity account balance and the Withdrawal Base is a figure that’ll help determine your future income. 1 These different buckets have the potential to grow over time as you accrue interest, though they grow at different rates.
How is the guaranteed lifetime income payout calculated? When you choose to start your income, your income payments are based on the Withdrawal Base growth option you originally selected, the amount your Withdrawal Base has grown to, your current age, and whether you elect single or joint-lifetime guaranteed lifetime income. 1,2,3
Ready to activate your guaranteed lifetime income? You only have to make two decisions: 1. When you’d like to start receiving lifetime income. 2. If the lifetime income will be paid to just yourself, or to both yourself and your spouse.
Although you’re not invested directly in an index, your contract value accrues interest based on index performance. Meanwhile, your Withdrawal Base may grow using one of two optional strategies, available for an additional cost, both of which provide powerful income growth potential.
Contract Value
Withdrawal Base*
Imagine this: you purchase a ForeIncome FIA and choose the optional Income Multiplier Benefit to grow your Withdrawal Base.
$260,000 Years 6.10% Years x
$260,000 Years
$15,860
Based on the Income Multiplier Benefit lifetime income percentages on page 9 , you and your spouse would receive 6.10% of your $260,000 Withdrawal Base – $15,860 – every year for the rest of your lives.
That means that even after you pass, your spouse will keep getting that same $15,860 every year for life too. And with the Income Multiplier Benefit option, those payments may even increase after you start receiving income. One year after you activate your Income Multiplier Benefit, unfortunately, your spouse experiences an unexpected health setback.
By the time you’re 72, your Withdrawal Base grows to $260,000 and you decide to activate your income. You choose joint-lifetime income for you and your spouse.
Year
1
23456 78910
* Graph is reflective of the optional Guaranteed Income Builder Benefit selection. This hypothetical is no guarantee of future results. Actual results may vary.
1 The income multiplier benefit is included on date of issue for an annual charge of 1.05% of the Withdrawal Base at the end of each contract year. The Withdrawal Base is a separate numerical value used to help determine the amount of future income. It is not available for cash surrender or as a death benefit. 2 Income Multiplier Benefit Lifetime Withdrawal Percentages e ective 06/12/2023. Joint-life income is based on the younger age on the income start date. 3 Assuming no excess withdrawals. An annuity that provides bonus or multiplier features may o er higher or lower strategy parameters on applicable index strategies, such as index caps, than a product that doesn’t o er those features. Over time and under certain scenarios, the amount of the bonus or multiplier may be o set by these di erences. Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and assume compliance with the product’s benefit rules, as applicable.
1 The income benefit is included on date of issue for an annual charge of 1.05% of the Withdrawal Base at the end of each contract year. The Withdrawal Base is a separate numerical value used to help determine the amount of future income. It is not available for cash surrender or as a death benefit.
Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and assume compliance with the product’s benefit rules, as applicable.
3
FIA1451-2
4
FIA1451-2
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