What’s Covered In This Review
In 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 Trust
If 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!
Although these claims about fixed indexed annuities may sound good, it is important that you find out just how many of them are true before you move forward with the purchase of an annuity. In order to do that, though, it could mean that you have to read through a myriad of fine print – which in turn, could make annuities even more confusing.
If you have arrived here on our site with the hope of learning more about the Global Atlantic ForeIncome Option 1 fixed annuity, then you are certainly in the right place. In fact, dare we state that right here is the only website where you can obtain all of the intricate details – which includes not just the good, but also the bad and the ugly.
Although most of the other annuity websites – and financial advisors – would prefer to only focus on the good, it can be difficult, if not impossible, to make a wise decision without knowing the whole story…not just part of it.
Just to be entirely clear here, there are definitely some significant advantages to owning a fixed indexed annuity – provided that this type of product fits nicely into your overall financial plan. So, given that, you not only need to know how these annuities work but also why you may end up choosing the ForeIncome Option 1 annuity from Global Atlantic over a long list of other potential annuity options.
This annuity review is here in order to help you with getting a more in-depth understanding of all of this annuity’s “small print” – as knowing this can help you in making a well-informed decision going forward.
So, if you are ready to begin, let’s go!
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 Annuity
Global 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 Annuity
Global 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
The site refers to the Option 1 annuity as “a vehicle that offers the features of a traditional fixed index annuity (such as protection of principal and the ability to earn an additional return), along with an available Guaranteed Lifetime Withdrawal Benefit.”
The Guaranteed Lifetime Withdrawal Benefit, or GLWB, includes a choice of two growth options – 10% with no interest credits added, or 7.5% plus an additional dollar amount of interest credits annually, minus withdrawals.
In addition, this annuity also offers a Guaranteed Minimum Surrender Value, which could help to increase the annuity’s contract value upon surrender. This could also potentially serve as a minimum death benefit.
How a Financial Advisor Might “Pitch” This Annuity
Today, 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 Annuity
Fees 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 Annuity
Where 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
Where it works the worst:
This particular annuity may not be such an ideal fit for you if you are looking for:
- 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
In order to truly get an idea of whether or not a fixed indexed annuity such as the Global Atlantic ForeIncome Option 1 fixed index annuity is right for you, click here so that you can immediately download our free annuity buyer’s report.
You can also benefit by running the numbers on this – or any other similar annuity – via our fixed index annuity calculator. While many annuity sales brochures will provide you with hypothetical information, running the figures based on your specific situation will at least get you somewhat closer to being in the ballpark. Click Here if you would like us to run an individual spreadsheet for you.
There are many key factors that you need to consider when you are deciding whether or not an annuity is right for you and your specific short- and long-term financial goals. But, regardless of the type of annuity you are thinking about, as well as where you may purchase it from, all annuities really should be considered as long term endeavors.
In the case of the ForeIncome Option 1 annuity from Global Atlantic, you can be assured that your principal is safe and that you will also have the opportunity for a higher return – provided that the underlying market index (or indexes) performs well.
Likewise, when you are ready to convert your funds over into a stream of income in retirement, that too can be accomplished using this financial vehicle. And, if the lifetime income option is chosen, you can count on that income for the rest of your life.
So, there are certainly some nice features and benefits that are associated with the Global Atlantic ForeIncome Option 1 fixed index annuity. However, this product could also fall somewhat short. And the reality is that there may be some better alternatives out there for you.
So, if you still have any questions or concerns that have not been answered in this review, or if you would like to talk directly to an unbiased annuity expert, then please feel free to reach out to us via our secure contact form here.
Need Any Additional Information About the ForeIncome Option 1 Fixed Index Annuity from Global Atlantic? Did You Happen to See Any Mistakes that Need Correcting?
We realize that this annuity review ran somewhat long – and for that, we do appreciate you sticking with us all the way through to the end. Our thought, though, is that we would much rather provide you with “too much” detail, as versus not enough. So, if you happened to find this annuity review to be helpful, then please feel free to forward it on to anyone else who you feel might also benefit from the information.
We also understand just how quickly information about annuities can and does change – so, if you found any place in this review where the information needs to be updated, please also let us know and we will hop on those updates right away.
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