The Income 150+ TM Fixed Index Annuity Strong Guarantees and Great Potential

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1 TM

2 Strong Guarantees and Great Potential The Income 150+ Fixed Index Annuity is a single premium, Fixed Index Annuity made in the USA by Forethought Life Insurance Company. It is designed with a unique income benefit to help Americans guarantee* a lifetime annual income. The Income 150+ is available for issue ages for an annual charge of 0.95%.** Three guaranteed income bonuses, or income boosts : 1. 20% of premium* at issue 2. 15% of premium* beginning of year % of premium* beginning of year 5 One potential income bonus: % of interest credited to contract value beginning of year 10.* $150,000 $135,000 $120,000 $105,000 Premium $100,000 $120,000 20% $135,000 15% $150,000 15% $240,000 $210,000 $180,000 $150,000 $120,000 Premium $100,000 $90, Beginning of Contract Year $90, Beginning of Contract Year Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and subject to compliance with benefit rules. * Assuming no withdrawals or income activation. Any withdrawals prior to activating income reduce the Income Base and future income bonuses proportionately to the reduction in contract value. No bonuses are added after activating income. Income bonuses apply to the Income Base only. They are not available as part of the Contract Value or Death Benefit. ** Annual Charge is calculated as a percentage of Income Base and deducted from the contract value at the beginning of each Contract Year. 2

3 The Income 150+ Fixed Index Annuity is available for non-qualified, IRA, and Roth IRA plans.* Premium Limits $10,000 minimum premium $1,000,000 maximum total premium for ages 55-80** $500,000 maximum total premium for ages 81-85** Minimum Guaranteed Contract Withdrawal Value 87.5% of premiums paid, less withdrawals and rider charges, compounded at a rate between 1% and 3%. State variations may apply. Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and subject to compliance with benefit rules. * If you are investing in a Fixed Index Annuity through a tax-advantaged retirement plan such as an IRA, you will receive no additional tax advantage from a Fixed Index Annuity. Under these circumstances, you should only consider buying a Fixed Index Annuity if it makes sense because of the annuity s other features, such as guaranteed lifetime income amounts or death benefit protection. ** as measured by total contribution per person for all Forethought annuities 3

4 Interest Crediting Methods Clients have the option of allocating funds to any of the interest crediting methods listed below. Interest is credited daily for the Fixed Account and at the end of the term for the indexed methods. Funds may be reallocated to an available method at the end of each term. Funds may only be allocated to or from the Barclays index every three years. The minimum allocation to a method is $5,000. One-year Fixed Account One-year S&P 500 Annual Point-to-Point with Cap One-year S&P 500 Monthly Point-to-Point with Cap Three-year Barclays ARMOUR II with Spread Interest credited to the indexed account methods is guaranteed not to be less than 0%. Interest credited to the fixed account is guaranteed not to be less than 0.50%. The interest crediting methods listed above are available on all Income 150+ Fixed Index Annuity products. Fixed rates, index caps, and spreads are guaranteed for the length of the crediting term and reset at the beginning of each term. Please refer to for the current rates. Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and subject to compliance with benefit rules. 4

5 Withdrawal Privileges* Withdrawal Charges and MVA will be waived for withdrawals up to the greatest of: 10% of the beginning-of-year contract value after the first Contract Year; except in any year where a full surrender occurs** Required Minimum Distributions (RMD) imposed by the IRS due to funds paid into this policy, if qualified. Systematic withdrawals may be specified by dollar amount or percentage of contract value with the Owner s choice of payout frequency. *All withdrawals in the first Contract Year are subject to commission chargeback except guaranteed lifetime income amounts. Withdrawals of taxable amounts are subject to ordinary income tax and may be subject to a 10% federal tax penalty if taken before age 59 ½. **State variations may apply. 5

6 Withdrawal Charges Contract Year All Ages 10% 10% 9% 9% 8% 7% 6% 5% 4% 2% 0% Market Value Adjustment Market Value Adjustments apply only when withdrawal charges are assessed (state variations may apply). They can increase or decrease the withdrawal charges depending on whether interest rates have fallen or risen since the contract issue date. A free withdrawal followed by a complete surrender in the same Contract Year will result in the above charges being applied to both the amount previously taken as free and the remaining contract value withdrawn. State variations may apply. 6

7 70/10 States Certain states (referred to as 70/10 States) require reduced Withdrawal Charges. As of the Income 150+ launch date, the following states are considered 70/10: AK, CT, DE, MD, MN, NH, NJ, NV, OH, OK, OR, PA, SC, TX, UT, VT, WA Please refer to for the most current State Availability. Withdrawal Charges Contract Year All Ages 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Market Value Adjustment Market Value Adjustments are assessed only when withdrawal charges are assessed (state variations may apply). They can increase or decrease the withdrawal charges depending on whether interest rates have fallen or risen since the contract issue date. 7

8 Standard Death Benefit Upon death of the Owner, beneficiaries may receive the full contract value* without Withdrawal Charges or MVA. Nursing Home Waiver** At any time on or after the first Contract Anniversary, if the Owner should become confined to an approved nursing facility for at least 60 consecutive days, Withdrawal Charges on any portion of the contract value withdrawn will be waived. Forethought must receive proof as identified in the waiver rider in order to qualify for this benefit. Terminal Illness Waiver At any time after the first Contract Year, if the Owner is diagnosed with a Terminal Illness with a life expectancy of less than 12 months, Withdrawal Charges will be waived on any portion of the contract value withdrawn. Forethought must receive proof as identified in the waiver rider in order to qualify for this benefit. * Contract value equals the Premium, plus accumulated interest, less annual benefit charges, less withdrawals (which include any Withdrawal Charges and MVA charged on the withdrawal). **Referred to as the Confinement Waiver Rider in CT. Subject to state availability. 8

9 When the Income 150+ is purchased, a value in addition to the contract value is established called the Income Base. These two values are not the same. Income Base The Income Base is a value used to determine size of the guaranteed lifetime income amount available under the Income 150+ income benefit. It is not a cash value and is not available for withdrawal or cash surrender. Contract Value The contract value is the account value of the Income 150+ Fixed Index Annuity. Withdrawals are made from this value and are subject to Withdrawal Charges and Market Value Adjustments (state variations apply). All withdrawals from the contract value reduce the contract value. Withdrawals prior to activating income reduce the Income Base and future Income Bonuses proportionately to the reduction in contract value. Withdrawals in excess of certain limits after activating income reduce the Income Base and guaranteed lifetime income amount proportionately to the reduction in contract value. 9

10 The Income 150+ Fixed Index Annuity Guaranteed Growth of the Income Base The Income Base of the Income 150+ increases when guaranteed income bonuses, also referred to as income boosts, are added at the beginning of years 1, 3, and 5. The Income Base is a value used to determine the size of the guaranteed lifetime income amount available under the benefit. This is not a cash value and is not available for withdrawal or cash surrender. No bonuses are added after the Income Start Date. The three guaranteed income bonuses are: 1. 20% of premium* at issue 2. 15% of premium* beginning of year % of premium* beginning of year 5 $150,000 $135,000 $120,000 $120,000 $135,000 15% $150,000 15% $105,000 Premium $100,000 20% $90, Beginning of Contract Year Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and subject to compliance with benefit rules. *Assuming no withdrawals or income activation. Any withdrawals prior to activating income reduce the Income Base and future income bonuses proportionately to the reduction in contract value. No bonuses are added after activating income. 10

11 Additional Growth of the Income Base Another income bonus, or income boost, is added to the Income Base of the Income 150+ TM at the beginning of year 10. The amount of this bonus equals 150% of the interest credited to the contract value during the first nine Contract Years. No bonuses are added after the Income Start Date. The potential income bonus: % of interest credited to contract value beginning of year 10.* For example, if Income 150+ is purchased with $100,000 of premium and during the first nine years receives $50,000 of fixed and indexed interest credit, $75,000 will be added to the Income Base at the beginning of Contract Year 10. $50,000 of interest credited first nine years x 150% $75,000 income bonus beginning of year 10 $250,000 $225,000 $200,000 $175,000 $150,000 $125,000 $100,000 For example: $150,000 Income Base + $75,000 income bonus $225,000 Income Base beginning of year 10 Premium $100,000 Beginning of Contract Year 10 Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and subject to compliance with benefit rules. *Assuming no withdrawals or income activation. Any withdrawals prior to activating income reduce the Income Base and future income bonuses proportionately to the reduction in contract value. No bonuses are added after activating income. 11

12 The Income 150+ Fixed Index Annuity Annual Income The guaranteed lifetime income amount equals the greater of the Income Base or the contract value multiplied by the Income Benefit Factor based on attained age* on the income start date. Income 150+ Benefit Factors Single Life Income Option % 3.50% % 4.00% % 4.50% % 5.00% % 5.50% % 6.00% % 7.00% Attained Age on Income Start Date Joint Life* Income Option Income Benefit Factors increase by up to 0.1% for attained ages between 60 and 85, and by 0.2% between ages 85 and 90 * Joint Life rates based on age of the younger age on the income start date. Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and subject to compliance with benefit rules. 12

13 Important Information Income 150+ TM Fixed Index Annuity is issued by Forethought Life Insurance Company, is available in most states with Contract FA1201SPDAX-01, FA1201SPDAX-02, ICC11-FA1201SPDAX-01 and FA1201SPDAXL-02(certificate series GA1201SPDAX-02, as applicable). Read the Contract for complete details. Products and features are subject to state availability. Income 150+ TM income bonuses are also commonly referred to in communications as, income boosts. Forethought is Forethought Financial Group, Inc. and its subsidiaries, including the issuing company of Forethought Life Insurance Company. Taxable distributions (including certain deemed distributions) are subject to ordinary income taxes, and if made prior to age 59 ½, may also be subject to a 10% federal income tax penalty. Payments from IRAs are taxable in accordance with the normal rules surrounding taxation of payments from an IRA. Early surrender charges may also apply. Withdrawals may reduce the death benefit and any optional guaranteed amounts in an amount more than the actual withdrawal. The S&P 500 Index is a product of S&P Dow Jones Indices LLC or its affiliates ( SPDJI ) and has been licensed for use by Forethought Life Insurance Company. Standard & Poor s and S&P are registered trademarks of Standard & Poor s Financial Services LLC ( S&P ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); and these trademarks have been licensed for use by SPDJJ and sublicenses for certain purposes by Forethought Life Insurance Company. Forethought Life Insurance Company s products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index

14 Barclay ARMOUR II Index is a trademark of Barclays Bank PLC or its affiliates and has been licensed for use by Forethought Life Insurance Company in connection with the issuance and distribution of 150+ TM Fixed Index Annuity. This product is not sponsored by, endorsed, sold or promoted by Barclays, and Barclays makes no representation regarding the advisability of investing in the product. Barclays Capital Inc. and its affiliates ( Barclays ) is not the issuer or producer of Income 150+ TM Fixed Index Annuity and Barclays has no responsibilities, obligations or duties to investors in Income 150+ TM Fixed Index Annuity. The Barclays ARMOUR II Gross USD 7% ER Index is a trademark owned by Barclays Bank PLC and licensed for use by Forethought Life Insurance Company as the Issuer of Income 150+ TM Fixed Index Annuity. While Forethought Life Insurance Company of Income 150+ TM Fixed Index Annuity may for itself execute transaction(s) with Barclays in or relating to the Barclays ARMOUR II Gross USD 7% ER Index in connection with Income 150+ TM Fixed Index Annuity investors acquire Income 150+ TM Fixed Index Annuity from Forethought Life Insurance Company and investors neither acquire any interest in Barclays ARMOUR II Gross USD 7% ER Index nor enter into any relationship of any kind whatsoever with Barclays upon making an investment in Income 150+ TM Fixed Index Annuity. The Income 150+ TM Fixed Index Annuity are not sponsored, endorsed, sold or promoted by Barclays and Barclays makes no representation regarding the advisability of the Income 150+ TM Fixed Index Annuity or use of the Barclays ARMOUR II Gross USD 7% ER Index or any data included therein. Barclays shall not be liable in any way to the Issuer, investors, or to other third parties in respect of the use or accuracy of Barclays ARMOUR II Gross USD 7% ER Index or any data included therein. FA7295(10-14)