ForeRetirement℠ Variable
Annuity Suite
NAIC Training Effective 2013
The 2010 revised NAIC Suitability in Annuity Transaction Model regulation, in
pertinent part, expands the suitability criteria necessary for an insurer or producer to
recommend an annuity and requires completion of both a one time, four hour
general annuity training course and a one time product specific training course.
The information in this document is confidential and may not be shared, copied or
otherwise disseminated to anyone other than individuals identified as being directly
involved in the sales process. All information is subject to change.
1
NOT BROKER
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WITH THEONLY.
PUBLIC. FOR BROKER TRAINING ONLY.
NOT FOR USE WITH THE PUBLIC. FOR
ForeRetirement Variable Annuity: A Snapshot
A ForeRetirement variable annuity from Forethought Life Insurance Company offers options for protecting your clients’ income, legacy or both,
depending on their personal needs and objectives. Upon completion of this training you will gain an understanding of the ForeRetirement variable
annuity product suite and obtain knowledge of the features and benefits offered within, as well as associated costs and restrictions. You then will
be better able to determine which of your clients may benefit from incorporating a ForeRetirement variable annuity in their retirement strategy.
Share Classes
B-Share
L-Share
C-Share
Optional Income Benefits
Daily Lock Income Benefit℠
Annual Lock Income Benefit℠
Standard Death Benefit
Contract Value
Optional Death Benefit
Protection
Legacy Lock℠
Maximum Daily Value
Maximum Anniversary Value
Return of Premium (ROP)
Investment Options
54 Individual Fund Options
3 Investment Strategy Models
3 Portfolio Planner Asset Allocation℠ Models
8 Personal Protection Portfolios
Fixed Account
Available for B-Share and L-Share only
Available Plan Types
Non-qualified
IRA
Roth IRA
SEP IRA
Inherited IRA*
*Optional Income Benefits are not available in conjunction with Inherited IRA plans.
Guarantees are based on the claims-paying ability of Forethought Life Insurance Company.
2
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NOT FOR USE WITH THE PUBLIC. FOR
ForeRetirement Variable Annuity: Share Class Options
Share Classes
B-Share
L-Share
C-Share
80
80
80
1st year – 8.5%
2nd year – 7.5%
3rd year – 6.5%
4th year – 5.5%
5th year – 4.5%
6th year – 3.5%
7th year – 2.5%
1st year – 8%
2nd year – 7%
3rd year – 6%
4th year – 5%
No CDSC
Nonqualified: $10,000
Qualified: $5,000
Nonqualified: $10,000
Qualified: $5,000
Nonqualified: $10,000
Qualified: $5,000
M&E 0.45%
Admin Fee 0.20%
Total = 0.65%
M&E 0.80%
Admin Fee 0.20%
Total = 1.00%
M&E 1.35%
Admin Fee 0.20%
Total = 1.55%
0.50% of premium annually,
deducted each Quarterly Contract
Anniversary
0.50% of premium annually,
deducted each Quarterly Contract
Anniversary
N/A
2.21%
2.56%
2.61%
Nursing Home Waiver
Under qualifying circumstances,
Contingent Deferred Sales Charges
(CDSC) will be waived for a Partial
Withdrawal or full Surrender
Under qualifying circumstances,
Contingent Deferred Sales Charges
(CDSC) will be waived for a Partial
Withdrawal or full Surrender
N/A
Max. Annuitization Age
The later of age 90 or 10 years from
the date of issue (owner can elect
earlier date). Certain tax-qualified
plans require payments to
commence by age 70½. May vary by
firm.
The later of age 90 or 10 years from
the date of issue (owner can elect
earlier date). Certain tax-qualified
plans require payments to
commence by age 70½. May vary by
firm.
The later of age 90 or 10 years from
the date of issue (owner can elect
earlier date). Certain tax-qualified
plans require payments to
commence by age 70½. May vary by
firm.
Life Annuity with Guaranteed
Payments for 10 Years
Life Annuity with Guaranteed
Payments for 10 Years
Life Annuity with Guaranteed
Payments for 10 Years
Max. Issue Age*
Contingent Deferred Surrender Charge
(CDSC) Schedule
Each deposit receives its own CDSC schedule
Minimum Initial
Investment Amounts
Product Mortality & Expense and
Administrative Fees
Premium-based Charge
Total Cost with 1.07% avg. fund fees
Default Annuity Payout Option
*Maximum issue age may be subject to firm restrictions.
Our approval is required for any Premium Payment if the aggregate of all Premium Payments received exceeds 150% of the Initial Premium.
3
State and firm variations may apply.
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
Annual Maintenance Fee of $50 applies to Contracts under $50,000.
ForeRetirement investment platform
Full investment flexibility is available to those who either elect
only the ROP death benefit or elect no optional benefits
American Century VP Growth Fund
Hartford Capital Appreciation HLS Fund
MFS® Growth Series
American Century VP Mid Cap Value Fund
Hartford Dividend and Growth HLS Fund
MFS® International Value Portfolio
American Century VP Value Fund
Hartford Growth HLS Fund
MFS® Investors Trust Series
Hartford High Yield HLS Fund
MFS® New Discovery Series
Hartford Index HLS Fund
MFS® Value Series
Hartford International Opportunities HLS Fund
Mutual Shares Securities Fund
Hartford Portfolio Diversifier HLS Fund*
PIMCO All Asset Portfolio
Hartford Total Return Bond HLS Fund
PIMCO EqS Pathfinder Portfolio
American Funds Global Growth and Income Fund
American Funds Growth Fund
American Funds Growth-Income Fund
American Funds International Fund
American Funds New World Fund
Hartford Value HLS Fund
PIMCO Total Return Portfolio
American Funds Protected Asset Allocation Fund
Invesco V.I. Balanced-Risk Allocation Fund
Putnam VT Equity Income Fund
BlackRock Capital Appreciation V.I. Fund
Invesco V.I. Core Equity Fund
Putnam VT Income Fund
BlackRock Equity Dividend V.I. Fund
Invesco V.I. International Growth Fund
Putnam VT Voyager Fund
BlackRock Global Allocation V.I. Fund
Invesco V.I. Mid Cap Core Equity Fund
Templeton Foreign Securities Fund
BlackRock High Yield V.I. Fund
Invesco V.I. Money Market Fund
Templeton Global Bond Securities Fund
Invesco V.I. Small Cap Equity Fund
Templeton Growth Securities Fund
BlackRock U.S. Government Bond V.I. Fund
Franklin Income Securities Fund
Franklin Rising Dividends Securities Fund
Franklin Small Cap Value Securities Fund
Franklin Strategic Income Securities Fund
Lord Abbett Bond Debenture Portfolio
TOPSTM Managed Risk Balanced ETF Portfolio
Lord Abbett Fundamental Equity Portfolio
TOPSTM Managed Risk Moderate Growth ETF
Portfolio
Lord Abbett Growth Opportunities Portfolio
TOPSTM Managed Risk Growth ETF Portfolio
*Hartford Portfolio Diversifier HLS Fund is only available within certain asset allocation models and is not available as a stand-alone investment option.
4
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PUBLIC. FOR BROKER TRAINING ONLY.
NOT FOR USE WITH THE PUBLIC. FOR
ForeRetirement: Optional Income Benefits
Daily Lock Income Benefit℠
• Daily market step-up potential that locks in value every day the contract value hits a new high in excess of the current Withdrawal
Base (the amount used to calculate income when taking withdrawals); or
• A 6% annual deferral bonus is accumulated if step-ups are less for that contract year, available until the earlier of the tenth
contract anniversary or the first withdrawal, provided no withdrawals are made. “Simple and stackable” – Simple crediting applies
for the Deferral Bonus. In years when the step-ups exceed the Deferral Bonus, no bonus is credited. However, in any applicable
years following, the Deferral Bonus will be credited on the stepped-up value.
• Provides income through Lifetime Annual Payments (LAP)– guaranteed lifetime withdrawals, provided benefit rules are followed
• Has the potential to grow income on a daily basis
• Can be for one life or two lives, jointly with a spouse
Annual Lock Income Benefit℠
• Offers the same features and benefits as Daily Lock Income Benefit, except step-ups occur on an annual basis instead of daily
Once a withdrawal is made:
WHAT IS THE COST?
Current
Cost
Maximum
Cost
Daily Lock
Income Benefit
1.25%
2.50%
Annual Lock
Income Benefit
1.05%
2.50%
Deferral Bonuses cease. Daily step-ups continue until age 90. Step-ups
continue to be applied to the Withdrawal Base daily, when applicable;
however, resulting Lifetime Annual Payments will be calculated upon:
• Contract Anniversary
• The Lifetime Withdrawal Percentage changes
• A subsequent Premium Payment
• An Excess Withdrawal, or
• A change of Owner, due to Spousal Contract Continuation*
Optional benefits terminate upon any beneficial ownership change.
*Benefit may be reelected by spouse if eligible and available for single life option.
All guarantees assume compliance with benefit rules and are based on the claims-paying ability of Forethought Life Insurance Company.
5
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PUBLIC. FOR BROKER TRAINING ONLY.
NOT FOR USE WITH THE PUBLIC. FOR
Daily Lock Income Benefit Hypothetical Example
During upward trends in
the performance of your
clients contract value, they
are likely to receive
frequent daily step-ups
until a peak is achieved.
Each day the contract value
exceeds the current
Withdrawal Base, the
Withdrawal Base “steps-up”
to lock in the new high. The
daily high for the year is
locked in to the Withdrawal
Base. In this year, there is no
Deferral Bonus because the
daily high is greater than 6%.
For up to 10 contract anniversaries
or until first withdrawal, a 6%
Deferral Bonus, applied to the
Withdrawal Base, prevails over daily
step-ups if step-ups for the year are
less.
When your client
decides to begin
withdrawals for
retirement income,
known as Lifetime
Annual Payments, they
are guaranteed a
percentage of their
Withdrawal Base for
life. For example, if
they are 65, they
payout will be 5% for
single life or 4.5% for
joint life.
All guarantees assume compliance with benefit rules and are based on the claims-paying ability of Forethought Life Insurance Company.
6
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NOT FOR USE WITH THE PUBLIC. FOR
Lifetime Annual Payment: Daily Lock and Annual Lock
Income Benefit
Lifetime Annual Payments – guaranteed annual lifetime income amount
• Calculated as a percentage of the Withdrawal Base, which is separate and distinct from the contract value.
• The Withdrawal Base is an inaccessible value used solely for income calculation purposes and may not be surrendered.
• The percentage of the Withdrawal Base received in annual income benefits varies by the age which income begins.
• Withdrawals do not reduce the Withdrawal Base provided benefit rules are followed.
• The Withdrawal Base may continue to increase through market step-ups until age 90, retaining the potential to increase
benefits even while taking income.
• Cumulative partial withdrawals equal to or less than the available Lifetime Annual Payment (LAP) will not reduce the
Withdrawal Base. Cumulative partial withdrawals in excess of the LAP will result in a proportionate reduction.
• Withdrawals taken to satisfy RMD requirements related to this Contract would not be considered an Excess Withdrawal.
• Withdrawal percentages for joint-life Contracts are based on the age of the younger spouse.
If income
begins
Percent of
Withdrawal Base
Age
Single
Joint
59½ - 64
4%
3.5%
65-84
5%
4.5%
85+
6%
5.5%
All guarantees assume compliance with benefit rules and are based on the claims-paying ability of Forethought Life Insurance Company.
7
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WITH THEONLY.
PUBLIC. FOR BROKER TRAINING ONLY.
NOT FOR USE WITH THE PUBLIC. FOR
ForeRetirement: Optional Income Benefit Features
GLWB: Daily Lock
GLWB: Annual Lock
80
80
Max. Issue age
Cost
Withdrawal bands,
reduce by 0.50% for joint life
Current
Maximum
Current
Maximum
1.25% single/joint
2.50%
1.05% single/joint
2.50%
Age 59½ -64
4%
Age 59½ -64
4%
Age 65-84
5%
Age 65-84
5%
Age 85+
6%
Age 85+
6%
Deferral Bonus
6% “simple & stackable”, up to 10 years/first
withdrawal
6% “simple & stackable”, up to 10 years/first
withdrawal
Step-up Frequency
Daily until age 90
Annually until age 90
Investment Requirements
RMD-friendly2
8 Personal Protection Portfolios; limited individual fund options1
Yes
• The Guaranteed Lifetime Withdrawal Benefit (GLWB) riders cannot be revoked by the owner; however, a cost increase may be declined. The
current cost at that time will be locked in and no further increases will occur. If a cost increase is declined, income rates will reduce 1%;
however, all applicable Deferral Bonuses and step-ups will continue.
• All withdrawals prior to age 59½ are treated as excess withdrawals and reduce the Withdrawal Base proportionately.
• Annual Rider Charges taken each Quarterly Contract Anniversary, waived upon partial withdrawal, death and annuitization.
• Benefits are owner-driven and will terminate upon death of the owner for Single Life option (can be re-elected through Spousal Continuation
subject to issue rules then in place).
All guarantees assume compliance with benefit rules and are based on the claims-paying ability of Forethought Life Insurance Company.
1These
investment restrictions are designed to reduce investment volatility. As a result, contract value normally may not decline in value as much as
the overall market in downturns and will not normally increase in value to the same extent as the equity markets during market upswings.
2Excess withdrawals taken to satisfy RMD requirements related to the contract will not reduce the Withdrawal Base.
8
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NOT FOR USE WITH THE PUBLIC. FOR
Additional Considerations: Daily & Annual Lock Income Benefits
• Once elected, the riders cannot be revoked by the owner.
• These riders are not available if any covered life or annuitant would be age 81 or greater on the rider effective date.
• The riders are available to be added post-issue. If elected other than at Contract issuance, rider benefits will be calculated from the
rider effective date, not the Contract issue date.
• Required Minimum Distributions (RMD) “friendly.”
• All optional income benefits will terminate upon an ownership change, unless there is no change to the beneficial owner.
• Ownership changes may result in taxation, a change in benefits or lack of availability of the riders.
• The rider charge may increase upon any contract anniversary. If an increase is declined, the withdrawal percentage will be decreased
by 1% (ex.: 5% to 4%); however, market step-ups and Deferral Bonuses, if applicable, will continue to be credited.
• Forethought may require approval for subsequent premium payments after the first contract anniversary, following the rider
effective date.
• The Deferral Bonus Period applies for the 10 contract anniversaries following the rider effective date, regardless of whether a Deferral
Bonus is applied to the Withdrawal Base on any given contract anniversary. The Deferral Bonus period will end sooner if a withdrawal
is made.
• Unused Lifetime Annual Payment amounts will not carryover to subsequent years.
• Withdrawals may be started and stopped, but Deferral Bonuses will cease after the first withdrawal and will not be reinstated.
• Required participation in Personal Protection Portfolios or select individual fund options will impact performance. Performance varies
by model.
9
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PUBLIC. FOR BROKER TRAINING ONLY.
NOT FOR USE WITH THE PUBLIC. FOR
Required Investments for Daily Lock Income Benefit or Annual Lock
Income Benefit
Individual Fund Options*
Any combination of these funds may be chosen, but they cannot be combined American Funds Protected Asset Allocation Fund
with Personal Protection Portfolios (PPP), and you cannot invest or transfer TOPSTM Managed Risk Balanced ETF Portfolio
assets to a PPP model once invested in any of these individual fund options. TOPSTM Managed Risk Moderate Growth ETF Portfolio
TOPSTM Managed Risk Growth ETF Portfolio
Personal Protection Portfolios
Target Equity
Target Fixed Income
40-80%
20-50%
50%
50%
65%
35%
85%
15%
Each portfolio includes a 50% allocation to the Hartford Portfolio Diversifier HLS Fund.
AMERICAN PORTFOLIO
GROWTH PLUS PORTFOLIO
American Funds International Fund
10%
MFS New Discovery Series
5%
American Funds Growth Fund
20%
American Funds Growth Fund
10%
American Funds Growth-Income Fund
20%
Invesco V.I. International Growth Fund
Putnam VT Voyager Portfolio
10%
10%
Lord Abbett Fundamental Equity Portfolio
15%
BALANCED PLUS PORTFOLIO
American Century VP Mid Cap Value
5%
Templeton Foreign Securities Fund
5%
HARTFORD PORTFOLIO
Invesco V.I. International Growth Fund
5%
Hartford International Opportunities HLS Fund
10%
American Century VP Growth
15%
Hartford Capital Appreciation HLS Fund
20%
MFS Value Series
20%
Hartford Dividend and Growth HLS Fund
20%
BALANCED PORTFOLIO
INDEX PORTFOLIO
BlackRock Capital Appreciation V.I. Fund
10%
MFS Growth Series
10%
BlackRock Equity Dividend V.I. Fund
15%
VALUE PLUS PORTFOLIO
PIMCO EqS Pathfinder Portfolio
15%
Invesco V.I. Small Cap Equity Fund
5%
Hartford Value HLS Fund
10%
FRANKLIN PORTFOLIO
Hartford Index HLS Fund
50%
Putnam VT Equity Income
10%
Franklin Small Cap Value Securities
5%
Templeton Foreign Securities Fund
10%
Franklin Rising Dividends Securities Fund
10%
Invesco V.I. Core Equity Fund
15%
Templeton Growth Securities Fund
15%
Mutual Shares Securities Fund
20%
*Clients investing in these individual fund options should anticipate that their contract value normally may not decline in value as much as the overall market in downturns. However, they
should also anticipate that their contract value will not normally increase in value to the same extent as the equity markets during market upswings.
10
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
Required Investments for Daily Lock Income Benefit
or Annual Lock Income Benefit: Important Considerations
The American Funds Protected Asset Allocation Fund, the TOPS Managed Risk Balanced ETF Portfolio, the TOPS Managed Risk
Moderate Growth ETF Portfolio, the TOPS Managed Risk Growth ETF Portfolio, collectively along with the Hartford Portfolio
Diversifier HLS Fund are designed to reduce investment volatility within the portfolios. As a result, clients should anticipate that
their contract value normally may not decline in value as much as the overall market in downturns. However, they should also
anticipate that their contract value will not normally increase in value to the same extent as the equity markets during market
upswings. If clients are uncomfortable with the inclusion of these funds in their investment, the Daily Lock Income Benefit or the
Annual Lock Income Benefit riders may not be suitable.
•
These required investment choices are subject to both credit and interest rate risk.
•
These required investment choices share prices and yield will be affected by interest rate movements, with bond prices
generally moving in the opposite direction from interest rates. Credit risk refers to the bond issuers ability to make timely
payments of principal and interest.
•
These required investment choices will use derivatives. These investment strategies may be riskier than other investment
strategies and may result in greater volatility, particularly during periods of market decline.
•
Futures and options may be more volatile than direct investments in the securities underlying the futures and options, may
not correlate perfectly to the underlying securities, may involve additional costs, and may be illiquid.
•
The Hartford Portfolio Diversifier HLS Fund is available solely to owners of variable annuity contracts issued by Forethought
Life Insurance Company or Hartford Life Insurance Company and its affiliates who have selected certain optional benefits.
•
Insurers may indirectly benefit from mandatory asset allocation through reduced volatility and long-term guarantee
obligations.
All guarantees assume compliance with benefit rules and are based on the claims-paying ability of Forethought Life Insurance Company.
11
NOT FOR USE WITH THE PUBLIC. NOT
FOR FOR
BROKER
USE TRAINING
WITH THE ONLY.
PUBLIC. FOR BROKER TRAINING ONLY.
Legacy Lock℠: An innovative death benefit option
1. Start with an income benefit
Legacy Lock may only be purchased
alongside the Daily Lock Income
Benefit or Annual Lock Income
Benefit
WHAT IS THE COST?
Current
Cost
Maximum
Cost
Daily Lock
Income Benefit
1.25%
2.50%
Annual Lock
Income Benefit
1.05%
2.50%
Legacy Lock
0.95%
1.50%
12
2. Add Legacy Lock℠
For a death benefit that will not be reduced by income benefits
provided benefit rules are followed
• Withdrawals will not reduce the death benefit, as long as the client does
not exceed the Lifetime Annual Payment.
• Prior to annuitization, death benefits equal the greater of:
 Enhanced Return of Premium (EROP) - full amount invested in the
Contract, or more, based on a one-time step-up opportunity that
boosts the death benefit to the contract value, if greater, at the time
of first withdrawal
 Base ROP – premium payments adjusted for partial withdrawals; or
 Contract Value – the current Contract Value at death
• A surviving spouse, through age 70, may have the ability to extend the
death benefit to new beneficiaries and continue receiving income by
continuing the Contract and re-electing the riders if they are still being
offered.
Important Note: A variety of factors — including withdrawals,
underperformance and fees — can reduce the contract value. Should the
contract value be less than the greater of either one Lifetime Annual
Payment or the minimum contract value, the death benefit reverts to
traditional return or premium and is reduced by withdrawals. The Legacy
Lock step-up would also no longer apply. Your clients may need to choose
between an unreduced death benefit and continued withdrawals should the
contract value approach the required minimum.
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
ForeRetirement: Legacy Lock Features
Optional Legacy Lock non-reducing DB
Max. Issue age1
1Maximum
2Available
13
70
Current
Maximum
Cost
0.95%
1.50%
Death Benefit
Pays beneficiaries the greatest of:
• Enhanced ROP2
• Base ROP
• Contract Value
Deferral Bonus
NA
Step-up Frequency
One-time upon first withdrawal
Investment Requirements
Subject to GLWB requirements
RMD-friendly
Yes
issue age may be subject to firm restrictions.
provided Contract retains a value equal to or greater than one Lifetime Annual Payment.
NOT FOR USE WITH THE PUBLIC. FOR
NOT BROKER
FOR USETRAINING
WITH THEONLY.
PUBLIC. FOR BROKER TRAINING ONLY.
Additional Considerations: Legacy Lock
•
Available for election through age 70.
•
The Legacy Lock death benefit is revocable on or after the first contract anniversary if the rider charge is
greater than the rider charge on the rider effective date.
•
The Legacy Lock death benefit will be reduced proportionately for amounts in excess of Lifetime Annual
Payments and for all amounts withdrawn prior to age 59½. Ownership changes may result in a change in
benefits or lack of availability of the rider.
•
Contract must retain a value equal to at least one LAP for the benefit to remain available; otherwise,
traditional return of premium benefits will apply, without a step-up and adjusted for withdrawals.
•
If a Spousal Continuation of the Contract is elected, the surviving spouse must be under age 71, and reelect the benefit if it is still being offered.
•
On nonqualified Contracts, death benefit value applied to the Contract upon Spousal Continuation will
be considered taxable gains when withdrawn.
•
State and firm availability may vary.
•
Optional benefits are terminated upon annuitization, including at Annuity Commencement Date (ACD),
and any values associated with the optional benefit may be lost or forfeited.
14
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
Daily Lock & Legacy Lock Hypothetical Example
All guarantees assume compliance with benefit rules and are based on the claims-paying ability of Forethought Life Insurance Company.
15
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
Maximum Daily Value
Building a stronger legacy, one day at a time
With the optional Maximum Daily Value℠ (MDV) death benefit, gains will be locked-in for beneficiaries
every day that the contract value hits a new high.
Maximum Daily Value (MDV) provides a unique death benefit solution that pays beneficiaries the greater of:
• The contract value
• Maximum Daily Value (adjusted for premium payments and withdrawals), which is the highest attained contract value
on any day prior to the eighty-first birthday of the oldest owner*
daily performance
Withdrawals reduce the death benefit on a proportionate basis unless purchased alongside an income rider. With an income rider, withdrawals up to the Lifetime Annual Payment (LAP)
reduce the death benefit dollar-for-dollar and excess withdrawals reduce the benefit on a proportionate basis. Proportionate reductions are likely to be greater than dollar-for-dollar.
*Based on the age of the annuitant if the owner is a non-natural entity.
All guarantees assume compliance with benefit rules and are based on the claims-paying ability of Forethought Life Insurance Company.
16
NOT FOR USE WITH THE PUBLIC. NOT
FOR FOR
BROKER
USE TRAINING
WITH THE ONLY.
PUBLIC. FOR BROKER TRAINING ONLY.
MAV and ROP: Standalone optional death benefits
1.
Maximum Anniversary Value (MAV) — guarantees beneficiaries the greatest of:
• The contract value
• Premium payments (adjusted for withdrawals), or
• Maximum Anniversary Value (adjusted for premium payments and withdrawals), which is the highest attained
contract value on a contract anniversary through age 80*
2.
Return of Premium (ROP) — guarantees beneficiaries the greater of:
•
The contract value, or
•
Premium payments (adjusted for withdrawals)
WHAT IS THE COST?
Current
Cost
Maximum
Cost
MDV
0.55%
1.50%
MAV
0.35%
1.50%
ROP
0.25%
0.75%
Withdrawals reduce the death benefit on a proportionate basis unless purchased alongside an income rider. With an income rider, withdrawals up to the Lifetime Annual Payment (LAP)
reduce the death benefit dollar-for-dollar & Excess Withdrawals reduce the benefit on a proportionate basis. Proportionate reductions are likely to be greater than dollar-for-dollar.
*Based on the age of the annuitant if the owner is a non-natural entity.
All guarantees assume compliance with benefit rules and are based on the claims-paying ability of Forethought Life Insurance Company.
17
NOT FOR USE WITH THE PUBLIC. NOT
FOR FOR
BROKER
USE TRAINING
WITH THE ONLY.
PUBLIC. FOR BROKER TRAINING ONLY.
ForeRetirement MDV and MAV investment options
All options on this slide are also available to those who elect the
ROP death benefit or a custom allocation strategy without any optional benefits
Investment Strategy Models
Individual Fund Options
May elect any combination of individual
fund options in lieu of models.
BlackRock Global Allocation V.I. Fund
Portfolio Planner Asset AllocationSM Models
Fund
Growth Strategy
Balanced
Moderate
Growth
Growth
American Century VP Growth Fund
25%
MFS Growth Series
25%
Putnam VT Equity Income Fund
20%
Hartford Total Return Bond HLS Fund
15%
Lord Abbett Bond Debenture Portfolio
15%
American Century VP Growth Fund
4%
5%
6%
BlackRock U.S. Government Bond V.I.
Fund
American Century VP Value Fund
5%
6%
7%
American Funds Growth Fund
7%
8%
9%
Hartford Total Return Bond HLS Fund
American Funds International Fund
4%
5%
5%
BlackRock High Yield V.I. Fund
5%
5%
5%
Franklin Small Cap Value Securities Fund
0%
2%
2%
Franklin Strategic Income Securities Fund
4%
4%
3%
Value Strategy
25%
Invesco V.I. Balanced Risk Allocation
Fund
Invesco V.I. Money Market Fund
Total
100%
6%
7%
8%
BlackRock Equity Dividend V.I. Fund
Hartford International Opportunities HLS Fund
0%
0%
4%
Mutual Shares Securities Fund
25%
Hartford Total Return Bond HLS Fund
11%
9%
6%
MFS International Value Portfolio
20%
Invesco V.I. International Growth Fund
3%
4%
3%
Putnam VT Income Fund
Putnam VT Income Fund
30%
Invesco V.I. Mid Cap Core Equity Fund
3%
3%
2%
See slide 11 for Important
Considerations regarding the four funds
listed below.
American Funds Protected Asset
Allocation Fund*
TOPSTM Managed Risk Balanced ETF
Portfolio*
TOPSTM Managed Risk Moderate
Growth ETF Portfolio*
TOPSTM Managed Risk Growth ETF
Portfolio*
Invesco V.I. Small Cap Equity Fund
3%
2%
3%
Lord Abbett Fundamental Equity Portfolio
7%
8%
9%
Lord Abbett Growth Opportunities Portfolio
0%
0%
2%
MFS Investors Trust Series
5%
6%
7%
International Strategy
American Funds Global Growth and
Income Fund
MFS International Value Portfolio
3%
4%
3%
Invesco V.I. Core Equity Fund
25%
PIMCO Total Return Portfolio
12%
8%
5%
Invesco V.I. International Growth Fund
20%
Putnam VT Income Fund
11%
8%
6%
Templeton Global Bond Securities Fund
7%
6%
5%
PIMCO Total Return Portfolio
30%
100%
100%
100%
Hartford Dividend and Growth HLS Fund
PIMCO All Asset Portfolio
PIMCO Total Return Portfolio
Total
Total
Total
100%
25%
100%
Asset allocation does not guarantee that your clients contract value will increase nor will it protect against a decline if market prices fall.
*Clients investing in these individual fund options should anticipate that their Contract value normally may not decline in value as much as the overall market in downturns.
However, they should also anticipate that their Contract value will not normally increase in value to the same extent as the equity markets during market upswings.
18
NOT FOR USE WITH THE PUBLIC.NOT
FORFOR
BROKER
TRAINING
ONLY. FOR BROKER TRAINING ONLY.
USE WITH
THE PUBLIC.
ForeRetirement: Death Benefit Features
Death Benefits
Optional Maximum Daily
Value
Optional Maximum
Anniversary Value
Optional Return of Premium
Standard
75
75
80
-
Max. Issue Age
Current
Cost
0.55%
Maximum
1.50%
Current
0.35%
Maximum
1.50%
Portfolio Planner Asset
Allocation Models, Investment
Strategy Models, and certain
Individual Fund Options (see
previous slide)
Current
0.25%
Maximum
0.75%
Investment
Requirements
Portfolio Planner Asset
Allocation Models,
Investment Strategy Models,
and certain Individual Fund
Options (see previous slide)
Reduction for
withdrawals
•Dollar-for-dollar up to the Lifetime Annual Payment (LAP) when elected alongside a GLWB;
proportionately for amounts over LAP.
•Proportionately for all amounts without a GLWB
None
No Cost
Benefit equals
Contract
Value
None
Dollar-fordollar
reduction
• Any optional death benefit is revocable on or after the first anniversary should a fee increase occur; however, a
new death benefit may not be elected. Return of Premium is revocable anytime after the fifth contract
anniversary.
• Annual Rider Charges taken each Quarterly Contract Anniversary, waived upon partial withdrawal, death and
annuitization.
• Benefits are owner-driven and terminate upon death of the owner (can be re-elected upon spousal
continuation subject to issue rules then in place)
19
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
Additional Considerations: Optional Death Benefits
• Only one optional death benefit may be elected.
• The Maximum Daily Value and Maximum Anniversary Value death benefits are not available if any owner or
annuitant would be age 76 or older on the benefit effective date.
• All optional death benefits will terminate upon an ownership change, unless there is no change to the beneficial
owner.
• The optional death benefit charge is based off of the death benefit. The charge may increase upon Spousal
Continuation (if available) or upon any contract anniversary. The maximum charge is 1.50% for Legacy Lock, 1.50%
for Maximum Daily Value and Maximum Anniversary Value; and 0.75% for the Return of Premium Death Benefit.
• The optional death benefit may be revoked if on or after the first contract anniversary the rider charge is greater
than the rider charge on the rider effective date. The Return of Premium Death Benefit can be revoked anytime
on or after the fifth contract anniversary. If the rider is revoked, it cannot be re-elected and another optional
death benefit cannot be added.
• Forethought may require approval for subsequent premium payments after the first contract anniversary, following
the rider effective date.
• Investment restrictions apply for Maximum Daily Value and Maximum Anniversary Value. If elected concurrently
with an optional living benefit, those investment restrictions prevail.
• A GLWB must be elected for Legacy Lock to be elected. The GLWB investment restrictions prevail.
• Optional benefits are terminated upon annuitization, including at Annuity Commencement Date (ACD), and any
values associated with the optional benefit may be lost or forfeited.
20
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
ForeRetirement Strategies: ForeYour Clients
The optional features within ForeRetirement can help your clients:
Live in retirement with guaranteed withdrawals for lifetime income that has the
potential to grow
Live & Give with guaranteed lifetime income that has the potential to grow
and a death benefit that may not be reduced by the income your clients receive,
provided benefit rules are followed
Give a legacy that locks-in investment gains for beneficiaries
All guarantees assume compliance with benefit rules and are based on the claims-paying ability of Forethought Life Insurance Company.
21
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
The LIVE Strategy
For clients seeking to optimize their income potential in retirement
The ForeRetirement Solution: Live with Daily Lock
The optional Daily Lock Income Benefit℠ can help:
1
Protect future income
2
Guarantee income growth with deferral bonus
3
Provide a predictable, lifetime income stream
that has the potential to increase
All guarantees assume compliance with benefit rules and are based on the claims-paying ability of Forethought Life Insurance Company.
22
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
The LIVE & GIVE Strategy
For clients seeking to optimize both income potential and a legacy
for beneficiaries
The ForeRetirement Solution: A Live & Give Strategy with Daily Lock & Legacy Lock
The optional Daily Lock & Legacy Lock can help:
1
Protect future income
2
Guarantee income growth with deferral bonus
3
Provide a predictable, lifetime income stream that has
the potential to increase
4
Protect money invested as guaranteed legacy to loved
ones, provided benefit rules are followed
All guarantees assume compliance with benefit rules and are based on the claims-paying ability of Forethought Life Insurance Company.
23
NOT FOR USE WITH THE PUBLIC. FOR
NOT BROKER
FOR USETRAINING
WITH THEONLY.
PUBLIC. FOR BROKER TRAINING ONLY.
The GIVE Strategy
For clients without a current income need who are more interested in using their
annuity to help grow a legacy.
The ForeRetirement Solution: Give Strategy with Maximum Daily Value
Death Benefit
The optional Maximum Daily Value Death Benefit can help:
1
Protect a legacy
2
Provide the opportunity to invest in traditional
asset allocation models*
3
Provide potential to increase your clients legacy
everyday
*Asset allocation does not guarantee that your Contract value will increase nor will it protect against a decline if market prices fall.
All guarantees assume compliance with benefit rules and are based on the claims-paying ability of Forethought Life Insurance Company.
24
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
ForeRetirement suite of variable annuities are flexible premium variable annuities issued by Forethought Life Insurance Company, and are
underwritten and distributed by Forethought Distributors, LLC.
Optional benefits are subject to state and firm approval and variations.
Taxable distributions (including certain deemed distributions) are subject to ordinary income taxes, and if made prior to age 591/2, may also be
subject to a 10% federal income tax penalty. Distributions received from a non-qualified contract before the Annuity Commencement Date are
taxable to the extent of the income on the contract. 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.
This information is intended to provide a basic understanding of the ForeRetirement suite of flexible premium variable annuities. The
information cannot be used or relied upon for the purpose of avoiding IRS penalties. Forethought Life Insurance Company does not provide tax
or legal advice. As with all matters of a tax or legal nature, your clients should consult their personal counsel for additional information.
Forethought is Forethought Financial Group, Inc. and its subsidiaries, including the issuing company of Forethought Life Insurance Company.
Forethought Life Insurance Company does not issue in the state of New York.
All guarantees assume compliance with benefit rules and are based on the claims-paying ability of Forethought Life Insurance Company.
All statements qualified by final prospectus and contract subject to change without notice.
All information herein is as of 5/2013.
FR-NAIC 5/13
25
100005-1
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
Certificate of Product-Specific Training
Module Title: ForeRetirement Variable Annuity
Course ID: FORVAB
I certify that I have received Forethought’s Product-Specific Training materials. I further certify
that I have read about and understand all material features of Forethought’s variable annuity
product, and have adequate knowledge of Forethought’s variable annuity product to determine
the suitability of the product for my client.
Insurance producer’s name (please print)
Insurance producer’s firm name
Insurance producer's National Producer Number
(NPN) or Social Security Number (SSN)
Insurance producer’s signature
Date (mm/dd/yyyy)
A copy of this course completion certificate should be faxed to Forethought at: 785-286-6105, or
emailed to FLIC-MAWF@se2.com, Attn: Licensing
26
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.
NOT FOR USE WITH THE PUBLIC. FOR BROKER TRAINING ONLY.