What is Covered in this Annuity Review?
In this annuity review, we will be covering the following details on the Global Atlantic Income 150+ Fixed Indexed annuity:
- Type of product
- Realistic long-term return expectations
- How the annuity is best used
- How the annuity 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 thinking about purchasing a financial product that can offer you security, along with an ongoing, lifetime stream of income in retirement, then the Global Atlantic Income 150+ Fixed Indexed Annuity could be a viable alternative for you.
But, before you go out and make a long-term commitment to purchase this product, it is highly advised that you first attain a good understanding of how the annuity works, and how it may or may not work for you and your specific financial goals.
Over the past several years, fixed indexed annuities have become much more popular with investors. One reason for this is, due to the constant ups and downs of the stock market, many people are leery about staying exposed to equities that could end up in a loss of their hard earned savings.
This type of annuity can help to alleviate that fear, as it provides principal protection in the event of a market downturn, while at the same time also offering the opportunity to obtain a higher amount of growth than with a regular fixed annuity.
Because of this increased popularity, many insurance carriers have been expanding their lineup of annuities – many of which offer a long list of bells and whistles. This, however, is not necessarily a good thing, as oftentimes, an already confusing product can be even more confusing – even for well-educated consumers and financial advisors.
With that in mind, it can be all the more important that you read an annuity’s “fine print” so that you know just what it is you’re getting into, what the product will do (and not do), and why you may be choosing it over a wide array of other potential alternatives.
This is where the Annuity Gator comes in!
Annuity and Retirement Planning Information You Can Trust
If this is the first time you’ve landed on our website, then please allow us to personally welcome you here to Annuity Gator. We make up a team of highly knowledgeable financial pros who are focused specifically on offering very in-depth and unbiased annuity reviews. We have been at this for quite a number of years now – much longer than our competitors – and because of that, we’ve become a go-to source for annuity information.
If you have been in the process of compiling more information on an annuity that you’re considering purchasing, then you have more than likely come across a lot of conflicting information about these products online. This really is not surprising, though, as there is a myriad of details available about these products. There is also a wide range of opinions about them, too.
It’s also possible that you have attended a seminar about annuities recently, where the presenter there discussed the ins and outs of the Global Atlantic Income 150 Plus or some other similar annuity. It may even have been your attendance at that seminar that has ultimately led you here to our website in search of additional information.
While you’ve been online searching for additional annuity details, you may also have noticed that, while there are plenty of very good annuity-related websites out there, some of them will make some pretty bold claims with the goal of “luring” you in. These may include some or all of the following:
But, even though these claims may initially sound enticing, it is critical that you verify their validity before you move forward with buying an annuity. In doing so, you may have to read through a plethora of annuity fine print – or you could just read on right now.
If you’re interested in knowing more about the Income 150+ fixed indexed annuity from Global Atlantic, then you are definitely in the right place. In fact, dare we state that this is the only place online where you will be able to get all of the key details on this annuity – both the good and the bad. This, in turn, can assist you with making a much more well-informed decision about whether or not this annuity fits in with your overall financial goals.
Oftentimes, the financial and insurance advisors who offer fixed indexed annuities like to paint a nice, rosy picture for you regarding the opportunity to earn a higher return, while also keeping your principal safe in case of a market downturn.
But unfortunately, these same advisors may also be conveniently leaving out some of the details that could be considered as drawbacks – which is information that any potential buyer needs to know!
One reason for this knowledge is so that you can anticipate how the annuity may (or may not) perform in certain situations. Another is that, once you have committed to an annuity, it can be extremely difficult – and expensive (due to surrender charges) – to get out of it if you change your mind.
Just to be perfectly clear, we want to state for the record that we do believe that annuities can be a very viable method of saving and producing retirement income – provided that the product is appropriate for the investor.
This annuity review is here to assist you with getting a better understanding of all of the small print so that you are more knowledgeable regarding the Global Atlantic Income 150+ fixed index annuity and why it might work for you in terms of attaining your retirement savings and income goals.
So, if you’re ready to proceed, let’s dive in!
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Global Atlantic Income 150+ Fixed Indexed Annuity at a Glance
|Product Name||Income 150+
|Type of Product||Fixed Indexed Annuity
|A.M. Best Rating||A (Excellent)
|Phone Number||(866) 645-2449
Opening Thoughts on the Income 150+ from Global Atlantic
Global Atlantic Financial Group, through its subsidiaries, offers a wide range of retirement, life, and reinsurance products that are designed for helping its customers address financial challenges with confidence. This company was initially created in 2004 as Goldman Sachs Reinsurance Group (GSRG).
Today, Global Atlantic Financial Group Limited is the parent company of all Global Atlantic subsidiaries. The company is considered to be strong and stable financially, and has earned high ratings from the insurer rating agencies, including a(n):
A (Excellent) from A.M. Best Company
A- (Strong) from Standard & Poor’s
A3 (Stable) from Moody’s Investor Services
Throughout the past several years, fixed indexed annuity products have become a great deal more in demand with consumers. This is particularly the case with those who are fast approaching retirement and are seeking a way to grow their money, yet without losing their hard-earned principal in the process.
But, even though fixed indexed annuities have the ability to protect principal and help your money grow, it is still important to ensure that this “best of all worlds” scenario will fit your needs. That’s because whenever something sounds too good to be true, it oftentimes is.
Before we get into the gritty details, here are some necessary legal disclosures…
This is an independent annuity product review. It is not a recommendation to purchase or to 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 annuity review is meant solely to be an independent review at the request of our readers so that they may see out perspective when breaking down the positives and the negatives of this particular annuity. Before purchasing any type of insurance and/or investment 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 situation. All of the names, marks, and materials that were used for this annuity review are the property of their respective owners.
For more information on how to compare annuities in order to determine which one may be the best for you and your financial circumstances, click here to obtain our free annuity report.
How Global Atlantic Describes the Income 150 Annuity
The Income 150+ fixed indexed annuity offered by Global Atlantic is a product that is actually issued by Forethought Life Insurance Company and is sold by independent insurance agents and financial advisors.
According to Global Atlantic, the Income 150+ fixed indexed annuity offers attractive benefits that can help you with generating income for retirement. This income is driven by a unique value within the annuity contract that is known as the income base.
The income base receives guaranteed growth before income starts so that your income is able to grow more predictably. This guaranteed growth applies only to the income base, though. And there is no guarantee that the contract value will grow at all.
This annuity offers three income “boosts” that are broken out at the time you initially purchase the annuity, as well as at the beginning of years three and five. These are as follows:
Day 1: Income boost #1 = 20% of the premium
Start of year 3: Income boost #2 = 15% of the premium
Start of year 5: Income boost #3 = 15% of the premium
So, if you hold the annuity until the beginning of year 5 without starting to take income, the income base will be equal to 150% of your premium amount as a basis to determine the annual income. (Note that this assumes no prior withdrawals have been taken).
The “plus” on this annuity comes into the plan in order to help you enhance your income benefits even more if you find that you do not need to start them within five years. Here, at the beginning of the 10th contract year, the income base may grow by another boost.
This is calculated by multiplying the interest that is earned on the contract value over the first nine years by 150%. (Likewise, both the annuity’s income base and the interest that is earned will be adjusted for any withdrawals, if applicable). Once the income benefits begin, the income benefit factor will be locked.
The Income 150+ annuity from Global Atlantic offers five different crediting methods, and you are allowed to allocate the funds in your account between one, or several of these methods. based on what will work the best for you. And, as with other fixed indexed annuities, if the underlying index (or indexes) suffer a negative year, your principal will not be diminished.
For a hypothetical look at how an initial deposit of $100,000 could grow, along with the Global Atlantic 150+ annuity’s income base value, take a look at the chart below:
When the time comes to begin generating income from the annuity, your income benefit factor will be locked. The annual Guaranteed Lifetime Income Benefit amount will equal a percentage – which is the Income Benefit Factor – of the income base.
Your Income Benefit Factor will vary, based on your age at the time of its activation. But take a look at the hypothetical example below to get a better idea of what may be anticipated in terms of either single life or joint life income:
The Income 150+ annuity also offers some additional bells and whistles, including a nursing home waiver and a terminal illness waiver. This can help to alleviate the concern with surrender charges if money needs to be accessed from the annuity and you qualify for either of these waivers.
For more of the in-depth details regarding the Income 150+ annuity from Global Atlantic, you can check out their product guide HERE.
How an Insurance or Financial Advisor Might Pitch this Annuity
It is possible that your current advisor may have already talked with you about the Global Atlantic 150+ fixed indexed annuity. Because this type of annuity can offer a wide range of benefits, there are several ways in which an insurance or financial advisor might pitch, or position, this product. For example, they may key in on the fact that this annuity offers the opportunity to get market index-linked growth, yet without any downside risk – regardless of what occurs in the market.
In addition to keeping your principal safe in an environment that can produce higher than regular fixed annuity returns, Income 150+ annuity can also provide you with an ongoing lifetime income in retirement for as long as you need it.
What the agent may or may not heavily focus on, however, is the “fine print” – which is important for you to know, though, as it will outline the parameters that are required for some (or all) of the annuity’s benefits to kick in.
For instance, while you can achieve a nice return based on the performance of an underlying index (or indices), there is also a cap (which is declared on an annual basis) above which your return cannot go.
As an example, if the stated cap is 4%, but the index returns 7% for a given year, the return granted to your funds in the annuity will be “capped” at 4%. In addition, this annuity comes with a fairly lengthy surrender charge period of 10 full years. This means that if you withdraw more than 10% of the contract’s value within the first ten years of owning this annuity, you will be hit with a penalty/withdrawal charge.
What About the Fees on the Global Atlantic Income 150+ Fixed Indexed Annuity?
Even though it’s been said that the best things in life are free when it comes to annuities that offer a long list of benefits, somewhere along the line you’ll need to pay for them. This definitely holds true when it comes to the Income 150+ fixed index annuity from Global Atlantic.
For example, there is a charge for the Guaranteed Lifetime Income Benefit of 0.95%. This fee is charged at the beginning of each contract year. And, as mentioned above, there are also ten years of surrender charges associated with this annuity. These start at 10% in Year 1 and they gradually grade down as follows:
The Annuity Gator’s End Take on the Global Atlantic Income 150+ Annuity:
Where it works best:
This particular annuity will usually work the best for those who are looking for:
Where it works worst:
Conversely, this particular annuity may not fare so well for those who:
- The opportunity to obtain a higher rate of growth than that of a regular fixed annuity
- Safety of principal
- Lifetime income – with income guarantee
- Want to fully participate in market gains
- Want or need to access their funds penalty-free within the first 10 years
- Do not intend to use the guaranteed lifetime income feature
There are many factors that need to be considered when you are trying to determine whether or not a particular annuity will be right for you – or even if any annuity at all is the best option for your retirement funds.
If you are considering a fixed indexed annuity, then you can be secure in knowing that your principal will be safe from the ups and downs of the stock market, as well as in that you will have a future retirement income that you can count on.
But in reality, the only way to really know if this particular product is right for you is to have it tested. We can do this for you providing you with an in-depth and personalized spreadsheet showing how the annuity may perform given your specific parameters.
In going this route, you could find that it fits the bill for you – or, you may also find out that there may be some other products out there that work better for you and your particular situation.
Also, if you did not get all of your questions about the Ascent 10 Bonus annuity from Athene answered in this review, then please feel free to reach out to us directly through our secure contact form here.
Any Additional Questions? Did You Notice Any Mistakes?
We understand that this review was a bit on the lengthy side. However, when offering our annuity reviews here at AnnuityGator.com, we would much rather “err” on providing “too much” information for our readers rather than not enough. That way, you will be in a better position to make a truly informed decision as to whether or not a particular annuity product is right for you.
In addition, we also know that annuity information can change on a regular basis. So, if you noticed any details in this review that may need to be updated or revised, then please let us know that, and we will be happy to make any of the needed changes here. Likewise, if reading over this review caused even more confusion about this product, then please click here in order to let us know that too.
Are there any other annuities you would like to have reviewed?
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The Annuity Gator
P.S If you would like to read more of our Global Atlantic annuity here are some links to check out: