Independent Review of Forethought Life ForeCare Fixed Annuity

What’s Covered In This Review

In this review, we’ll cover the following information on the Forethought ForeCare Fixed Annuity:

  • Product TypeIndependent Review of Forethought SecureFore 5 Fixed Annuity (MYGA)
  • Fees
  • Current Rates
  • Realistic long term return expectations
  • How it is 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’re considering a financial vehicle that can offer you security, along with a stable stream of income in retirement, then the Forethought Life ForeCare fixed annuity could be a viable option for you – beginning with this product’s principal protection, as well as other guarantees that have been built right into the annuity contract.

However, before you move forward with purchasing this – or for that matter, any other – annuity, it may be helpful if you first get a more in-depth understanding of just exactly how annuities work, and how one may (or may not) fit into your particular portfolio.

Throughout the past decade or so, annuities have risen in the ranks of popularity, particularly as a way to get a guaranteed income stream in the future. Because of that, the number of financial sales people who are offering these products has expanded a great deal. However, this may not necessarily be a positive thing, because even though the majority of financial advisors will work to do what’s right for their clients, they still may not always be giving you the best answers to the annuity questions that you have – and that should be answered before you end up purchasing a fixed annuity.

Also, due somewhat to annuities’ expanding popularity, the selection of different types of annuity products has also grown substantially. Some of these can be pretty confusing to understand – even for well-educated consumers (and financial advisors).

With that in mind, there are some steps that you should ideally take in order to truly understand what it is you’re thinking about buying – especially because an annuity could comprise a significant portion of your overall retirement income down the road. This is particularly the case as annuities are also considered to be long-term financial commitments, and once you have gotten into one, it can be quite costly to get back out.

Annuity and Retirement Income Planning Information That You Can Trust

If this is the very first time that you’ve visited our website, we’d personally like to welcome you to AnnuityGator.com. We comprise a team of experienced financial pros who are focused on giving you non-biased and very comprehensive annuity reviews. We have been offering these in-depth annuity reviews for many years via our website – and far longer than our competitors have. In turn, we have become a highly trusted source of annuity information.

If you have been seeking any information about annuities via the Internet, then it is likely that you may have run across a lot of details – some of them conflicting – with regard to these particular products. This is not at all surprising, as there are numerous details floating around out there.

You may also have recently attended a seminar about annuities, where the presenter provided you with dinner or lunch, in return for presenting information on these vehicles. That seminar may have even been the catalyst that ultimately led you here to our website, in search of more detailed information.

While there are many very good sites that are devoted to marketing their annuities online, the truth is that some of these will actually try to lure in their visitors by stating claims like the following:

  • Lowest annuity fees
  • Highest income payouts
  • Top rated annuity companies
  • Guaranteed income for life

Sound familiar?

But, as nice as these claims may be, you need to treat them just like you would when considering any other high-ticket purchase. In other words, you should be sure that these claims are backed up before you move forward. And sometimes doing so may require that you delve into annuity “fine print” – which could sometimes make the details even more cloudy.

There is good news in store, though, because if you want to find out more about the Forethought Life ForeCare fixed annuity, you are definitely in the right place.  In fact, we dare say that this website is the only place where you can actually find out all of the pertinent details, which include both the advantages and the drawbacks – which in turn, can truly help you to determine whether or not this is the right annuity for you.

Often, when insurance sales agents are trying to sell a fixed annuity, they will paint a nice, rosy picture of how these products offer safety of principal and a set rate of return.

But in doing so, they may also leave out some of the details regarding fixed annuities’ potential drawbacks. So, with that in mind, before you shift a sizeable chunk of your hard earned money into a fixed annuity, be sure that you have the whole story first.

Just to be perfectly clear, a fixed annuity can be very beneficial – provided that it fits with your overall financial plan and goals. So, it is essential to be sure that you know what you are considering, as well as why you may be choosing it over a long list of other possible financial alternatives.

This annuity review is here to assist you in better understanding all of the small print so that you have a better idea on whether or not the Forethought Life ForeCare fixed annuity will be right for you.

So, if you’re ready to begin, let’s go ahead and dive in!

Forethought ForeCare Fixed Annuity

Product NameForeCare Fixed Annuity
IssuerForethought Life Insurance Company
Type of ProductFixed Annuity
Standard & Poor's RatingA- (Strong)
Phone Number(855) 244-4440
Websitewww.forethought.com

Opening Thoughts on the Forethought ForeCare Fixed Annuity

Forethought Life Insurance Company was established in 1985, which makes it a relative newcomer to the financial services arena. The company actually started with a focus on offering pre-need funeral expense insurance. But over time, Forethought Life Insurance.

The company moved into other, related product lines. These include fixed annuities. In fact, when the company added broker-dealer and annuity capabilities from The Hartford back in 2013, it was able to jump into the annuity field full force.

More recently, Forethought became a part of the Global Financial Group – a holding company with roughly $45 billion in assets, of which approximately $19 billion is attributed to Forethought Life Insurance Company.

With a firm financial foundation, Global Atlantic has received high ratings from the insurer rating agencies – which includes an A- (Excellent) from A.M. Best Company. In addition, Forethought Life Insurance Company has been given a grade of A+ by the Better Business Bureau.

With so much volatility in the stock market over the past several years, the demand for fixed annuities has grown quite a bit, particularly as a way for retirees (and those who are preparing for retirement in the near future) to keep assets safe, and to ensure that they have a stable and reliable income going forward.

However, due to the historically low-interest rate environment since the economic recession of 2008, the return that has been offered by fixed annuities has been extremely low. In fact, in many cases, the returns on fixed annuities have not even been enough to outpace the rate of inflation. Because of that, these low rates could have a negative impact on future purchasing power, particularly if you plan to use income from a fixed annuity as a bulk of your incoming cash flow.  

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. Forethought Life Insurance Company 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 our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.

For additional information on how to compare fixed annuities so that you can decide which may be the best one for you, contact us in order to obtain our free annuity report.

How Forethought Life Insurance Company Describes the ForeCare Fixed Annuity

As this single premium deferred annuity is focused on the ability to access funds for a long-term care need, much of the information that you’ll find about it will highlight this feature. For example, according to Forethought Life Insurance Company’s ForeCare Fixed Annuity brochure, the “ForeCare Fixed Annuity improves your ability to pay for the long-term care you deserve.”

The literature goes on to state that long-term care can be paid for with tax-deferred dollars. There is also a benefit “multiplier” feature, which allows the annuitant to receive up to two, or even three times the amount of the contract value to spend on long-term care expenses.

The annuity also offers additional features, as well, such as:

  • Guaranteed interest rate
  • Tax-deferred growth

This annuity is available to those who are between the ages of 50 and 80, and it requires a minimum single premium of $35,000 (for both single or joint), and it allows a maximum premium amount of $400,000 for single individual purchasers, or of $600,000 for those who are purchasing jointly.

How a Financial Advisor May “Pitch” This Annuity

Because the Forethought ForeCare Fixed Annuity has a focus on the payment of long-term care related needs, it is likely that a financial advisor may “pitch” the annuity by highlighting this particular feature.

However, while this annuity’s funds may be accessed for a long-term care need, it will be necessary to first qualify for the payout. In this case, according to Forethought, “To be eligible for benefits, the insured must be chronically ill, with qualified long-term care services provided pursuant to a plan of care prescribed by a licensed health care practitioner.”

In addition, the benefits for care in a facility will not be paid out right away. There is an elimination period that first must be satisfied. In this case, benefits will only be paid out after the insured has already received 90 days of covered care within a period of 270 consecutive days.

Also, even though the product offers a “guaranteed interest rate,” the rate is declared annually on the contract anniversary – so it is possible that the rate in later years could be lower than the initial year’s interest rate.

What About Fees on the Forethought ForeCare Fixed Annuity?

In addition to knowing how your money may perform in an annuity, it is also a good idea to understand the type and a number of fees that you may be charged. This is because the fees on any annuity can have an impact on the amount that you ultimately build up in the account, and in turn, the amount that you’ll have available in income – or in this case, long-term care – benefits – in the future.

In the case of the Forethought ForeCare Fixed Annuity, while the rider for long-term care benefits is automatically included with the contract, there are other optional riders that will cost extra. These include the optional non-forfeiture benefit rider, and the optional inflation protection benefit rider.

There can be other fees assessed, too, such as contract and administration charges, as well as a surrender charge that can be incurred if you want to take out more than 10 percent of the contract value through the ninth contract year. These surrender charges are as follows:

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Independent Review of Forethought Life ForeCare Fixed Annuity

The Annuity Gator’s End Take on the Forethought ForeCare Fixed Annuity

Where it works best:

This particular annuity will usually work the best for those who are looking for:

  • A way to pay for the high cost of long-term care – especially if they are unable to qualify for a stand-alone long-term care insurance policy
  • Safety of principal
  • Guaranteed rate protection – at least for the first year of owning the annuity

Where it works the worst:

The Forethought ForeCare fixed annuity may not be an ideal fit if you:

  • Want access to most or all of your funds within the first several years
  • Are seeking a high rate of return on your money
  • Do not anticipate using the funds for a long-term care need

In order to know how to really compare the best annuity options for you, click here so that you can download our free annuity report.

In Summary

There is a multitude of factors that should be considered when you are trying to determine which annuity is right for you – or even if any annuity will fit into your overall financial picture. In any case, though, annuities should always be considered as long-term financial endeavors, and because of that, you should feel comfortable that the one you ultimately go with can help you to reach your goals.

If you are leaning towards a fixed annuity, know that these products can offer your safety of principal, along with other guarantees. And in the case of the Forethought.

ForeCare Fixed Annuity, there are some positive attributes. But, this annuity may still tend to fall somewhat short, and quite honestly, there may be better options out there for you – especially if you are more focused on guaranteed lifetime income in retirement, as well as the ability to attain a higher rate of growth.

If you still have any questions with regard to whether or not this annuity is right for you – or, even if you just simply need some additional guidance about annuities in general, then please feel free to reach out to us directly via our secure contact form here.

Do You Have Any Additional Questions on the Forethought ForeCare Fixed Annuity? Did You Notice Any Mistakes in this Review?

Although this review of the Forethought ForeCare Fixed Annuity was a bit lengthy, we would much rather provide you with too any details as versus not nearly enough.

Therefore, if you did find this review helpful to you, then please feel free to share it with others that you think might benefit, too.

Also, we realize that information about annuities can – and often does – change. So, if you did happen to notice any details within this review that should be revised or updated, please let us know, as we would be glad to make any of the necessary alterations.

If, however, this annuity review was confusing and it actually led you to have even more questions, please let us know that, too – as well as the other questions that you may have. You can contact us by clicking here.

Are there any other annuities that you would like to see additional information about?

No problem! Our team of annuity geeks will get on it and provide more in-depth details on other annuity products, too. Just click here in order to provide us with the annuity (or annuities) that you would like to know more about, and we will do our best to get the details on our website as quickly as possible.

Best,

The Annuity Gator

Forethought ForeCare Fixed Annuity

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