The purchase of life insurance is an important step in ensuring that loved ones will be taken care of financially in case of the unexpected. When obtaining a life insurance policy, there are some key criteria that an applicant needs to keep in mind.
These include making sure that they have the proper type and amount of coverage. It also, however, includes taking a close look at the insurance company through which they are purchasing the insurance policy. Doing so can help to determine whether you are dealing with one of the top insurance carriers, who is is strong and stable financially and has a good reputation for paying out its claims. One company that fits into this category is Forethought Life Insurance Company.
Forethought Life Insurance Company
The History of Forethought Life Insurance Company
A relative newcomer to the life insurance arena, Forethought Life Insurance Company began in 1985, as a subsidiary of Hillenbrand Industries. The main focus of this insurer was on providing pre-need coverage for funeral expenses – which the insurer did quite successfully for two decades. Then, in 2004, Forethought became an independent operation, separating itself from Hillenbrand.
Forethought Life Insurance Company quickly expanded its product offerings, and in 2006, the company brought on board fixed annuities – which allowed it to offer consumers with the ability to both save for retirement, as well as to receive a guaranteed lifetime income – something that retirees have top-of-mind, as so many people are living longer lives today.
In 2011, the company looked to expansion by moving into the banking industry. Also, it also launched into more product lines, such as the long-term care hybrid annuity. Later, in 2013, Forethought added both broker-dealer and annuity capabilities from The Hartford. By going this route, the company was able to go full force into both fixed and variable annuity sales.
Forethought Life Insurance Company is today a part of the Global Atlantic Financial Group. This large financial conglomerate started in 2004, as Goldman Sachs Reinsurance Group. Over the next ten years, Global Atlantic Financial Group grew – primarily by acquiring some financial and insurance companies. And, by 2013, Global Atlantic separated from Goldman Sachs. Today, this company operates fully on its own.
Forethought Life Insurance Company Review
The Global Atlantic Financial Group, along with its subsidiaries such as Forethought Life Insurance Company, offer a range of life insurance products, as well as additional products such as retirement annuities, and reinsurance options. Global Atlantic Financial Group presently holds roughly $45 billion in assets at its holding company level. As of year-end 2015, Forethought Life Insurance Company holds approximately $18.8 billion in total assets, which also makes it a strong contender in the life insurance industry.
Global Atlantic's mission is to be a leading life insurance, retirement, and reinsurance company, delivering long-term value to its customers and to its stakeholders. The company has a set of values that reflect its present and its past, which include:
- People – In striving to both attract and to develop a diverse team of talented employees who reinforce the company's overall culture, the company is dedicated to advancing the careers of its associates.
- Teamwork – Associates / employees are considered to be shared owners of the company. Because of that, the firm takes on more of a collaborative approach in both making decisions, as well as to solving problems.
- Integrity – The company also prides itself on being transparent, honest, and fair – in all aspects of its business. It very much values the relationships that it has with its clients, as well as its overall reputation.
- Innovation – Global Atlantic also works in developing creative solutions for meeting the changing needs of its business and of its customers.
- Stewardship – The company also takes on a rigorous approach to both understanding an quantifying risk. This also includes being judicious when using its capital.
Ratings for Forethought Life Insurance and Better Business Bureau Grade
Global Atlantic Financial Group, as a holding company, is considered to be strong and stable from a financial standpoint. The insurance companies that this entity maintains are also considered to be financially strong as well. The company has a rating of A- from A.M. Best (Excellent), which is the 4th highest of a possible 16 overall.
Even though Forethought Life Insurance Company is not accredited by the Better Business Bureau, it has been given a grade of A+ (out of a grade scale of A+ to F) from the BBB. Throughout the past three years, Forethought has closed a total of 4 complaints via the Better Business Bureau. Of these, two of the complaints have focused on issues with the company's products and / or its services, and the other two focused on the company's billing and / or collections.
Life Insurance Products Offered by Forethought Life Insurance Company
As the holding company of Forethought Life Insurance Company, Global Atlantic Financial provides several different life insurance options. These include the following:
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Term Life Insurance Coverage
With term life insurance, death benefit protection is offered, without any cash value build up. Because of this, term life insurance can be extremely affordable – especially for those who are young and in good health at the time of the application.
Term life insurance is sold for certain lengths of time, such as for ten years, 15 years, 20 years, of even 30 years. It may also be sold for 1-year renewable terms. Generally, during the length of time that a term life insurance policy is in force, the premium will remain level, as will the coverage.
With Forethought Life Insurance, a term life insurance policy can be obtained with coverage of as low as $50,000. Policies can be purchased for ten years, 20 years, and 30 years, as well as for 1-year annual terms. Insureds may also have the option to convert their term life insurance policy over, within certain parameters, to a permanent life insurance policy.
Permanent Life Insurance Coverage
A permanent life insurance policy offers both death benefit protection, and a cash value component. Unlike term life insurance, permanent life insurance will remain in force for the remainder of the insured's life, provided that the premium is paid.
The cash value is allowed to grow tax-deferred. This means that there is no tax due on the gain inside of the policy, unless or until the funds have been withdrawn. Funds may be either withdrawn or borrowed for any reason by the policyholder – including to pay off debt, supplement retirement income, or even to go on vacation.
Forethought Life Insurance company offers several types of permanent life insurance coverage. These include universal life insurance and indexed universal life insurance. With universal life insurance, the policyholder has death benefit coverage and cash value. Here, the policyholder can choose how much of his or her premium dollars will go towards the death benefit, and how much will go towards the cash value (within certain guidelines).
With an indexed universal life insurance policy, there is also a death benefit and a cash value. The growth of the cash value, however, will be based on the performance of an underlying market index such as the S&P 500. If the index performs well, then there will be a gain in the cash value. If, however, the index performs poorly in a given period, principal is protected, and there will not be a loss.
Preneed Insurance Coverage
Forethought Life Insurance Company also offers preneed insurance coverage. This type of insurance can help to pay for one's funeral and other related expenses. Today, these costs can often be in the range of $10,000. Through Forethought's TrustGuard Gold plan, money can be set asked for these costs via a whole life insurance policy.
Annuities from Forethought
In addition to life insurance, Global Atlantic – the parent company of Forethought Life Insurance Company – offers other coverage products, too, such as:
- Fixed Annuities
- Fixed Indexed Annuities
One factor of Forethought that I want to spotlight is their annuities. While you’ve probably heard the term annuity countless times, you might not realize the benefit of an annuity purchase. These annuities are an excellent way to supplement your retirement income and to ensure that you’ll have the money that you need to fulfill your retirement dreams. The two types of annuities that they offer are fixed annuities and fixed indexed annuities. Each of them have different pros and cons that you should be aware of if you’re looking for an extra way to invest your money for retirement.
Their fixed annuities will allow you to get a guaranteed paycheck in your retirement. These fixed annuities are a very conservative investment. Unlike the indexed annuities, these fixed annuities aren’t going to be impacted by the performance of the market and you’ll get predictable interest. They offer a ForeCare Fixed Annuity, which offers several benefits, like financial protection at least twice as much the contract value for long-term care costs.
The other option is their fixed index annuity, which gives a mix of financial security and the potential for more growth. There is a chance that these annuities will earn more than a traditional annuity, but there is also a risk of suffering losses. Their fixed index annuities have guaranteed income, but with the potential for much more. Not only that, but they also have several other advantages like offering several payout options that you can choose for retirement paychecks.
If you choose Forethought for your annuities, you’ll have several options for fixed index annuities. In fact, they have about six different options. Each of them has different additional benefits and riders that are added onto the annuities. Forethought agents can walk you through each of the options and help you decide which one is going to be best for you based on your finances and risk tolerance.
How to Get the Best Life Insurance Quotes
If you are looking for the best life insurance quotes, then it is a good idea to work with either an agency or a company that has access to more than just one single life insurance carrier. That way, you will be able to directly compare policies, benefits, and costs – and from there, determine which will be the best for you. This is not only true for when you are looking for life insurance, but for when you are shopping around for other types of covers as well, such as the best auto insurance companies and rates!
We can assist you with these comparisons as we work with many of the top life insurers in the marketplace today. In order to get started, all you have to do is complete the form available on the side of this page. If you should have any additional questions about life insurance, please feel free to contact us. We can be reached via phone, toll-free, by dialing 888-836-7071.
When you're in the market for life insurance, having a specialist on your side can be key. By comparing the plans that are right for you, it can better ensure that your loved ones will have the proper coverage in case of the unthinkable. So, contact us today – we're here to help.