CDA of America
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Forethoughts Income 125 Annuity
- Thread starter CDA of America
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- annuity
- 1,641
Re: Forethoughts Income 125 Annuity 10% Comm
I'm curious, please share the details of this product.
I'm curious, please share the details of this product.
- 924
Re: Forethoughts Income 125 Annuity 10% Comm
The public details or the other details?
The public details or the other details?
- 958
Re: Forethoughts Income 125 Annuity 10% Comm
Concise description:
Forethought Income 125 Fixed Indexed Annuity. The Income Account Value is the account that receives the 25% Bonus and guaranteed 5% annual interest for 10 years.
The Interest Strategies, whether the Fixed or Annual Point-to-Point (current cap is 6.25%), Monthly Point-to-Point with Cap (2.75%), Annual Cap with Monthly Averaging (7.25), is on the Contract Value Account (walk-away).
The Death Benefit Rider earns 5% Simple Interest on deposit/principal for 10 years.
Concise description:
Forethought Income 125 Fixed Indexed Annuity. The Income Account Value is the account that receives the 25% Bonus and guaranteed 5% annual interest for 10 years.
The Interest Strategies, whether the Fixed or Annual Point-to-Point (current cap is 6.25%), Monthly Point-to-Point with Cap (2.75%), Annual Cap with Monthly Averaging (7.25), is on the Contract Value Account (walk-away).
The Death Benefit Rider earns 5% Simple Interest on deposit/principal for 10 years.
Last edited:
- 1,641
Re: Forethoughts Income 125 Annuity 10% Comm
Eighty year old client puts $100k into this product and wants to take lifetime income....
I take it the account value will be $125k. If he take income immediately, what is the % of account value payable?
Really would like to know the moving parts on this, what the head-to-head products are from Aviva and Allianz and how they compare.
Eighty year old client puts $100k into this product and wants to take lifetime income....
I take it the account value will be $125k. If he take income immediately, what is the % of account value payable?
Really would like to know the moving parts on this, what the head-to-head products are from Aviva and Allianz and how they compare.
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- #6
CDA of America
New Member
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Re: Forethoughts Income 125 Annuity 10% Comm
Pad Thai For Lunch...do you mind if i call you to explain the product more...
Pad Thai For Lunch...do you mind if i call you to explain the product more...
- 958
Re: Forethoughts Income 125 Annuity 10% Comm
padthaiforlunch,
Since the annuitant cannot take withdrawals until after the first year, the balance in the Income Account Value would be $100,000 + 25% = $125,000 + 5% guaranteed Interest = $131,250. The income, should the annuitant begin withdrawals on the 13th month, would be approximately $6563 annual for life, which is 6.5625% of the original principal.
The Contract Value would still grow as per whichever strategy is chosen.
padthaiforlunch,
Since the annuitant cannot take withdrawals until after the first year, the balance in the Income Account Value would be $100,000 + 25% = $125,000 + 5% guaranteed Interest = $131,250. The income, should the annuitant begin withdrawals on the 13th month, would be approximately $6563 annual for life, which is 6.5625% of the original principal.
The Contract Value would still grow as per whichever strategy is chosen.
- 924
Re: Forethoughts Income 125 Annuity 10% Comm
Mmm....
So they give you a 25% bonus, but the income for an 80 year-old is 5%? That stinks. With Allianz and Aviva the income would be more like 7% for someone that age. Do the math at a 10% bonus and 7% income compared to a 25% bonus and 5% income to see where someone is better off.
In any event, someone that age might be better off with an immediate annuity if what they really are after is income. That might be more like 15%.
Moving parts. 25% big deal "bonus" when the income you can get is piss poor --if that 5% is correct. I haven't looked at the details yet, but my FMO has been pushing this since early December even though it was not yet available.
Mmm....
So they give you a 25% bonus, but the income for an 80 year-old is 5%? That stinks. With Allianz and Aviva the income would be more like 7% for someone that age. Do the math at a 10% bonus and 7% income compared to a 25% bonus and 5% income to see where someone is better off.
In any event, someone that age might be better off with an immediate annuity if what they really are after is income. That might be more like 15%.
Moving parts. 25% big deal "bonus" when the income you can get is piss poor --if that 5% is correct. I haven't looked at the details yet, but my FMO has been pushing this since early December even though it was not yet available.
SmartMoney
Expert
- 46
Re: Forethoughts Income 125 Annuity 10% Comm
This is a neat product designed for income and a bit more competitive on the cash values than their Destination Income Policy, because of the death benefit rider that guarantees 5% simple interest. If anyone wants more details PM me. I have top contracts available above 10% for larger producers. PM me.
This is a neat product designed for income and a bit more competitive on the cash values than their Destination Income Policy, because of the death benefit rider that guarantees 5% simple interest. If anyone wants more details PM me. I have top contracts available above 10% for larger producers. PM me.
- 958
Re: Forethoughts Income 125 Annuity 10% Comm
Allianz' and AVIVA have great products, too. With all of these income annuities, the agent will have the ability to design a specific annuity for a specific client.
Allianz' and AVIVA have great products, too. With all of these income annuities, the agent will have the ability to design a specific annuity for a specific client.
