The type of fixed index annuity (FIA) that may fit into your retirement strategy will determine the level of complexity. But no matter the type, here are two main things to keep in mind:

ONE: FIAs offer growth potential with no market-based losses.

TWO: FIAs may also offer protected lifetime income.

Growth potential
With an FIA, you may potentially grow your money through interest that’s credited to your contract. FIA interest crediting may be calculated in one of two ways:

Protected lifetime income
An FIA may also offer you the option of building a “retirement paycheck” for life that won’t go down due to down market performance and can’t be outlived.

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.

FIAs may be subject to market value adjustments (MVAs) and withdrawal charges. FIA protected lifetime income options typically assume no prior withdrawals and compliance with the products’ benefit rules.

¹ Indices are typically unmanaged and not available for direct investment.

² “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.

Fixed index annuities should be considered long-term insurance products and it’s understandable if you’re worried about tying up your money. But in reality, an FIA may offer you more flexibility than you realize.

For example, FIAs typically allow you to withdraw a percentage (10% is common) of your annuity “contract value” annually after the first year. This is known as a “free withdrawal.”¹ Amounts greater than allowed may result in a withdrawal charge, depending on how long you’ve owned the annuity. These charges gradually decline over time until they expire, allowing you full access to your contract value.

Also, many FIAs allow you to access all of your money free of charge if you become terminally ill or need nursing home care.

10%
FIAs typically allow you to withdraw a percentage (10% is common) of your annuity “contract value” annually after the first year.

¹Some products refer to this as a surrender charge.

Fixed Index Annuities (FIAs) can offer guaranteed lifetime income that’s protected from negative markets and the cost of this type of benefit is typically built into the product. Considering that guaranteed lifetime income may be something you can’t find with other products, you may find that the cost for such a benefit may be worth the tradeoff.

Also, if you purchase an FIA and wait a few years to start your income, you may have the opportunity to get more income than you would with other annuity types that provide immediate income.

The value of your fixed index annuity will never go down due to negative market performance since you’re never actually invested in the market. So you won’t lose any of your money if and when the markets drop.

FIAs typically offer the ability to receive guaranteed, predictable lifetime income that won’t run out and you may potentially get back more money in the form of income than you used for your original annuity purchase. Generally, as long as you don't take excess withdrawls, you will continue to receive income for as long as you live, often even if your contract value runs out. And typically, if you elect a joint income option, your spouse will keep getting the same amount of income after you die.

Lastly, if there’s any money left in your annuity when you (and your spouse, if applicable) die, your beneficiaries will typically receive the balance as a standard death benefit.

In summary:

• Your fixed index annuity contract value won’t go down due to negative market performances¹
• Your opportunity for guaranteed lifetime income could be more money than what you paid for your fixed index annuity.
• Any remaining contract value gets passed to your beneficiaries as a standard death benefit.

¹Early withdrawal charges and Market Value Adjustments (MVAs) may apply.

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