The life insurance unit of Houston-based Forethought Financial has launched the ForeRetirement variable annuity with “daily benefit options.” The contract, which marks the company’s first entry into the VA market since acquiring The Hartford’s annuity business, is available in B, C and L shares.
ForeRetirement will be distributed in partnership with national, regional and independent broker/dealers, as well as banks. It has been approved in 49 states and the District of Columbia, covering all jurisdictions where Forethought Life Insurance Company issues variable annuity business.
The contract’s “Daily Lock Income Benefit” guarantees lifetime withdrawals for retirees as a percentage of the benefit base, which can grow through favorable investment performance. The benefit captures new contract value highs on a daily basis, known as “step-ups,” to age 90, with a minimum deferral bonus of 6% simple interest credited until the 10th contract anniversary or the first withdrawal if sooner.
Contract owners who elect the income benefit can also elect the “Legacy Lock” death benefit option. It allows contract owners to provide beneficiaries with death benefit proceeds at least equal to the amount of premium invested. The death benefit will not reduce for withdrawals, unlike traditional annuity death benefits, as long as the benefit’s requirements and guidelines are met.
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