WHAT IS A FIXED INDEX ANNUITY?

A fixed index annuity (FIA) is an insurance product that provides protection against losses from market volatility and accumulates interest on a tax-deferred1 basis over a set period.

 
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INTEREST IS CALCULATED AND ADDED TO YOUR ACCOUNT IN ONE OF TWO WAYS:
 
1
AN INDEX-BASED STRATEGY

credits interest based, in part, on the performance of one or more market indices,2 such as the S&P 500.3

2
A FIXED-BASED STRATEGY

credits a specific, consistent percent of interest to the FIA each period.

WHAT IS A MARKET INDEX?

An objective indicator of changes across a market — or a market sector — based on the performance of representative securities.

WHAT IS THE S&P 500?

An unmanaged index that measures broad-based changes in stock market conditions based on the performance of 500 widely held U.S. common stocks.

TYPICALLY, FIAs ARE BEST SUITED FOR THOSE WHO ARE:

 

  • Unwilling to risk market losses
  • Frustrated with the limited growth potential of deposit-oriented options

 

How does money grow in an FIA?

FIND OUT

Do FIAs require me to lock up my money for a long time?

FIND OUT



1 Taxable distributions (and certain deemed distributions) are subject to ordinary income taxes, and if made prior to 59½, may also be subject to a 10% federal income tax penalty. Early surrender charges and market value adjustments may also apply.

2 Indices are typically unmanaged and not available for direct investment.

3 “Standard & Poor’s®”, “S&P®”, “Standard & Poor’s 500™” and “S&P 500®” are trademarks of Standard & Poor’s Financial Services LLC and have been licensed for use by Forethought Life Insurance Company. Fixed index annuities are not endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s does not make any representation regarding the advisability of purchasing a fixed index annuity contract.
 
This material is intended to provide educational information regarding the features and mechanics of the product and is intended for use with the general public. It should not be considered, and does not constitute, personalized investment advice. The issuing insurance company is not an investment adviser nor registered as such with the SEC or any state securities regulatory authority. It’s not acting in any fiduciary capacity with respect to any contract and/or investment.


Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and assume compliance with the product’s benefit rules, as applicable.

A fixed index annuity is intended for retirement or other long-term needs. It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. A fixed index annuity is not a registered security or stock market investment and does not directly participate in any stock or equity investments or index.

This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your tax or legal counsel for advice.

The issuing insurance company is not an investment advisor nor registered as such with the SEC or any state securities regulatory authority. It is not acting in any fiduciary capacity with respect to your investment. This information does not constitute personalized investment advice or financial planning advice.

Taxable distributions (and certain deemed distributions) are subject to ordinary income taxes, and if made prior to 59½, may also be subject to a 10% federal income tax penalty. Early withdrawal charges and market value adjustments may also apply.

Fixed index annuities are issued by Forethought Life Insurance Company, 10 West Market Street, Suite 2300, Indianapolis, Indiana.

Global Atlantic Financial Group (Global Atlantic) is the marketing name for Global Atlantic Financial Group Limited and its subsidiaries, including Forethought Life Insurance Company and Accordia Life and Annuity Company. Each subsidiary is responsible for its own financial and contractual obligations.

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