What’s Covered In This ReviewIn this review, we’ll cover the following information on the Global Atlantic ForeIncome Option 1 Fixed Index Annuity:
- Product Type
- Current Rates
- Realistic long term return expectations
- How this annuity is best used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.If you’ve been considering the purchase of a financial product that can provide you with principal protection, as well as the opportunity for increased returns – along with one that can provide you with a lifetime stream of income in the future – then the Global Atlantic Financial ForeIncome Option 1 fixed index annuity could be a viable option for you. However, prior to running out and making a long-term financial commitment with this annuity, it is always a good idea to first get a more in-depth understanding of how the annuity will work, and how it may or may not fit into your specific financial plans. Throughout the past few years, annuities have become a very popular financial vehicle that can offer retirees a guaranteed income – regardless of how long they live. Because of this, the number of insurance and financial professionals who are offering these particular products has also increased exponentially. This, however, may not necessarily be a positive thing, because even though most financial advisors work hard to do what’s right for their clients, they may not be giving you all of the key details that you would need to make a truly well-informed buying decision. Plus, due in large part to the growing popularity of annuities, the insurance companies that offer them have been growing their product lines in order to include “hybrid” and other types of annuity products – which come with a fair amount of additional bells and whistles. This can end up turning already complicated products into even more complex alternatives, making them more confusing – even for well-educated consumers and financial professionals alike. With that in mind, it is essential to know just exactly what it is that you’ll be buying because, in many instances, the purchase of an annuity could require a considerable amount of your hard-earned retirement savings. And, if you happen to find out too late that an annuity you buy isn’t really the right one for you, it can be extremely expensive (in terms of penalties and fees) for you to get out.
Annuity and Retirement Income Planning Information that You Can TrustIf you have never been to our website before, then allow us to personally welcome you to AnnuityGator.com. We make up a team of experienced financial, insurance, and annuity experts who are focused on providing you with the most comprehensive – and nonbiased – annuity reviews. We have been doing this for quite some time now – and much longer than any of our competitors. Because of this, we have become a highly trusted source of annuity information. If you have been in search of additional details regarding annuities via the Internet, then it is quite likely that you’ve come across many conflicting views about these financial vehicles. But this isn’t really very surprising because there are a wide array of opinions about whether or not these products really do what they say they’re going to do. You may also recently have attended a workshop or a seminar about annuities where you were offered a free meal in return for allowing the presenter to give you more information, and you possibly even set up a personal appointment with the presenter after that. Getting more information on the Global Atlantic ForeIncome annuity – or any other annuity – may even be what has ultimately led you right here to our website. Even though there are many other websites out on the Internet that focuses on marketing their annuities, some of these may try to “lure” you into providing them with your contact information by making bold claims such as:
- Highest annuity payouts
- Low fees
- Guaranteed income for life
- Top Rated Annuity Companies
- Get an Annuity Quote Now!
Global Atlantic ForeIncome Option 1 Fixed Index Annuity at a Glance
|Product Name||ForeIncome Option 1|
|Type of Product||Fixed Index Annuity|
|S&P Rating||A- (Strong)|
|Phone Number||(866) 645-2449|
Opening Thoughts on the Global Atlantic ForeIncome Option 1 Fixed Index AnnuityGlobal Atlantic Financial Group offers a wide range of insurance and retirement products. Through using these financial tools, clients are able to essentially “customize” a wealth enhancement and program that is specifically tailored to their specific needs. This company was actually formed at Goldman Sachs in 2004, and in 2013, Global Atlantic separated off and became its own independent company. Today, the company has a strong financial foundation, with more than $50 billion in assets. Global Atlantic has a good reputation for making good on its policy holders’ claims – and in turn, it has earned high ratings – from the independent insurer rating agencies, including an A- (Strong) from Standard & Poor’s, and an A- (Excellent) from A.M. Best Company. Due in large part on the continued volatility of the market over the past several years, the demand for fixed indexed annuities have expanded substantially – particularly as a way for people to obtain higher potential index-linked returns, while at the same time maintaining the safety of principal. However, even though this might initially sound like the best of both worlds, when something sounds too good to be true, it typically is. So, it is important that you take some precautions before you move forward with the purchase of this, or any, annuity, as you do not want to find out the negatives when it’s too late to get out without a hefty penalty.
Before we get into the gritty details, here are some legal disclosures…This is an independent product review, not a recommendation to buy or sell an annuity. Global Atlantic has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and negatives of this particular annuity. Prior to purchasing any type of investment or insurance product, it is important that you do your own due diligence and that you consult a properly licensed professional if you should have any specific questions that relate to your individual circumstances. All names, marks, and materials that were used for this review are the property of their respective owners. For more information on how to compare annuities in order to determine which one may be right for you, click here to obtain our free annuity report.
How Global Atlantic Describes the ForeIncome Option 1 AnnuityGlobal Atlantic describes the ForeIncome Option 1 annuity as providing upside potential with downside market protection. Given their balance of protection and potential, a fixed index annuity can provide a number of nice features, such as:
- Greater interest crediting potential than traditional interest crediting products, because crediting is linked to any positive performance of an equity index, such as the S&P 500 (subject to maximum limits)
- Help to protect principal when index performance is negative
- More accrued value based solely on interest earnings, so there are no losses in the annuity due to poor market performance
- Multiple methods of interest crediting to choose from
- A variety of traditional and enhanced payout options for future income
- Allowable withdrawals of up to 10% of the contract value without penalty during the surrender charge period
- Tax-deferred growth of the funds inside the contract
- Several different surrender charge periods to choose from
How a Financial Advisor Might “Pitch” This AnnuityToday, many of the insurance and financial advisors who offer fixed index annuities will “pitch” the fact that you can have the opportunity for higher return on a fixed index product – especially as it relates to regular fixed annuities – as well as the ability to keep your principal safe when the market tanks. When a commissioned insurance or financial sales advisor is showing you this – or any – annuity, though, be sure that you’re getting the whole story – and that you have a good understanding of just exactly what you’ll be getting should you decide to sign on the dotted line. Over the past few years, there have been a number of additional options made available, particularly with fixed index annuities. But, while these additional features can provide you with the ability to customize the annuity, they can also be extremely confusing. Likewise, there are often times additional charges and fees that are built into these great and wonderful features. So, it is important to make sure that you fully understand what the annuity does and doesn’t come with, and that you know how much extra you may be charged for adding various riders to your contract. Plus, there are also many financial advisors who present fixed indexed annuities as returning 7 to 8% per year – but, while most advisors are not intentionally misleading their clients, the reality is that a fixed index annuity will often time return far less.
Fees on the Global Atlantic ForeIncome Option 1 Fixed Index AnnuityFees that are incurred on annuities – or on any financial or investment vehicle – can negatively impact your true return. Annuities can ripe with various charges – so it is important to factor these into your overall decision as well. Most annuities will have surrender charges that will penalize the annuity holder if he or she withdraws more than 10 percent of their contract value within the first several years of purchasing it. In the case of the ForeIncome annuity, this product offers a Guaranteed Minimum Surrender Value (GMSV), which is an individual value tracked separately from the contract value of the annuity. This benefit can offer a “boost” to the contract value if withdrawals are not taken during the surrender charge duration. (This annuity has a 7-year surrender charge period).
The Annuity Gator’s End Take on the Global Atlantic ForeIncome 1 Fixed Index AnnuityWhere it works best: The bottom line on the Global Atlantic ForeIncome Option 1 fixed indexed annuity is that this annuity may work the best for people who are looking for the following features:
- Safety of principal
- The opportunity for index-linked growth
- Guaranteed lifetime income in retirement
- Access to most or all of your money within the first several years of purchasing the annuity
- You do not intend to use the lifetime income feature of the annuity