The Global Atlantic ForeIncome II is a fixed indexed annuity designed specifically for guaranteed lifetime income. Issued by Forethought Life Insurance Company, a subsidiary of Global Atlantic Financial Group (owned by KKR), it builds a growing income base through one of two guaranteed benefit riders – then converts that base into payments that last for life, regardless of what happens to the underlying contract value.
Unlike accumulation-focused FIAs, the ForeIncome II requires you to elect an income benefit at issue. You choose between two options: the Income Multiplier Benefit (performance-linked growth) or the Guaranteed Income Builder Benefit (fixed 10% annual rollup). This review breaks down how each option works, the current index crediting strategies, the 10-year surrender schedule, and key disclosures about the illustration indexes.
Global Atlantic ForeIncome II at a Glance
| Detail | Information |
|---|---|
| Issuing Carrier | Forethought Life Insurance Company |
| Parent Company | Global Atlantic Financial Group (wholly owned by KKR) |
| AM Best Rating | A- (Excellent) |
| Product Type | Fixed Indexed Annuity with Guaranteed Lifetime Withdrawal Benefit |
| Surrender Period | 10 years (surrender charges apply) |
| Minimum Premium | $25,000 |
| Maximum Premium | $500,000-$1,000,000 (varies by age and state) |
| Issue Ages | 45-85 |
| Free Withdrawals | 10% of beginning-of-year contract value annually |
| Market Value Adjustment | Yes – MVA applies during 10-year surrender period |
| Income Rider Required | Yes – must elect Income Multiplier or Income Builder at issue |
The Core Concept: Contract Value vs. Withdrawal Base
The most important thing to understand about the ForeIncome II is that it tracks two separate values simultaneously – a concept common to all GLWB income riders:
- Contract Value – Your actual account balance. This grows based on index performance, can be withdrawn from (subject to surrender charges), and is paid to beneficiaries at death.
- Withdrawal Base – A separate, higher value used only to calculate your lifetime income payments. It cannot be surrendered for cash. It grows faster than the contract value under the income benefit option you choose.
When you activate income, Global Atlantic multiplies your Withdrawal Base by your age-based payout percentage to determine your annual income amount. If the contract value eventually reaches zero because lifetime income payments have exceeded growth, income payments continue for life regardless – funded by Global Atlantic’s general account.
Income Benefit Option 1: Income Multiplier Benefit (1.05% Annual Fee)
The Income Multiplier Benefit ties your Withdrawal Base growth to the performance of the underlying index strategies – but at a multiplied rate.
- Before income activation: For every dollar of interest your contract earns, $3.00 is added to your Withdrawal Base (300% multiplier). Example: $5,000 in index credits adds $15,000 to the Withdrawal Base.
- After income activation: The multiplier drops to 1.0x – index credits are added to the Withdrawal Base dollar-for-dollar during the initial income period.
- Annual fee: 1.05% of the Withdrawal Base, deducted from the contract value annually.
This option rewards clients who defer income – the longer you wait, the more the 3x multiplier builds the Withdrawal Base. It also means your Withdrawal Base can grow faster in strong index years, but slower in flat or zero-credit years.
Income Benefit Option 2: Guaranteed Income Builder Benefit (1.20% Annual Fee)
The Guaranteed Income Builder Benefit offers a simpler, fully predictable rollup structure:
- Rollup rate: 10% guaranteed annual growth on the Withdrawal Base
- Rollup period: Up to 15 years, or until income is activated – whichever comes first
- Annual fee: 1.20% of the Withdrawal Base, deducted from the contract value annually
Example: Sarah, age 60, deposits $200,000 into the ForeIncome II and elects the Guaranteed Income Builder. Her Withdrawal Base starts at $200,000 and grows by $20,000 per year (10% simple-equivalent on the original amount). After 10 years without taking income, her Withdrawal Base reaches $400,000 before payout percentages are applied.
This option is best for clients who want a guaranteed, predictable income base growth regardless of market conditions – and are willing to pay a slightly higher fee (1.20% vs. 1.05%) for that certainty.
Lifetime Annual Payment (LAP) Rates
Once you activate income, Global Atlantic pays you a percentage of your Withdrawal Base each year for life. The payout percentage increases with age at activation:
| Age at Activation | Single Life Payout | Joint Life Payout |
|---|---|---|
| 60 | ~5.00% | ~4.50% |
| 65 | ~5.90% | ~5.30% |
| 70 | ~6.50% | ~6.00% |
| 75 | ~7.00% | ~6.50% |
Payout rates are current as of this review and subject to change for new contracts. Rates shown are approximate – contact a licensed agent for exact current rates.
Income Enhancement Benefit (No Additional Cost)
Both income options include the Income Enhancement Benefit at no extra charge. If you are unable to perform two or more Activities of Daily Living (ADLs) – bathing, dressing, eating, continence, toileting, or transferring – your lifetime income payment doubles for up to 5 years.
Key terms: Maximum issue age for this benefit is 75. There is a 1-year waiting period after contract issue, plus a 90-day elimination period after qualifying for the benefit. It can only be used once per contract. Available in most states (not California).
Lifestyle Payment Option
An alternative to the standard level income structure is the Lifestyle Payment Option (not available in California), which provides higher payments in early retirement and reduces them later:
- Active Phase (ages 55-72): Higher payments with an Enhancement Percentage added
- Steady Phase (ages 73-82): Level, guaranteed payments
- Legacy Phase (ages 83+): Reduced payments to preserve some remaining contract value potential
This option must be elected before age 70 and is designed for retirees who expect higher expenses in early retirement (travel, hobbies) and lower expenses later.
Current Index Crediting Options (2026)
| Index Strategy | Crediting Method | Current Cap |
|---|---|---|
| Fixed Account | Guaranteed fixed rate | Rate available at application |
| S&P 500 Engle 12% VT ER Index | 1-Year Point-to-Point with Cap | 8.75% |
| Nasdaq-100 Agile 15% Index | 1-Year Point-to-Point with Cap | 9.40% |
Additional index strategies may be available. Rates are current as of early 2026 and subject to change at each contract anniversary.
Important Disclosure: Both Illustration Indexes Are Backtested
The two index strategies featured in most ForeIncome II illustrations both have very recent inception dates:
- S&P 500 Engle 12% VT ER Index – Incepted December 18, 2024. All historical data in illustrations prior to that date is backtested hypothetical performance.
- Nasdaq-100 Agile 15% Index – Incepted February 21, 2025. Approximately one month of live performance history.
For an income-focused product like the ForeIncome II, this matters less than it might for a pure accumulation FIA – because the primary guarantee (your Withdrawal Base growth and lifetime payout rate) is contractually fixed and does not depend on index performance. Whether the index earns 8% or 0% in a year, your guaranteed income amount is protected.
However, the illustration’s hypothetical accumulation projections – which often show how the contract value grows alongside the Withdrawal Base – are based entirely on backtested index returns. Those projections should not be treated as realistic return forecasts.
Surrender Charge Schedule
| Contract Year | Surrender Charge |
|---|---|
| Year 1 | 9% |
| Year 2 | 9% |
| Year 3 | 8% |
| Year 4 | 7% |
| Year 5 | 6% |
| Year 6 | 5% |
| Year 7 | 4% |
| Year 8 | 3% |
| Year 9 | 2% |
| Year 10 | 1% |
| Year 11+ | 0% |
A Market Value Adjustment (MVA) also applies during the 10-year surrender period on withdrawals exceeding the free amount. The 10% annual free withdrawal provision reduces the practical impact of this, but full surrenders during years 1-10 will be affected by both the surrender charge and the MVA.
Who Is the Global Atlantic ForeIncome II Best For?
The ForeIncome II is built for one primary use case: guaranteed income in retirement. Use our income rider calculator to estimate what your lifetime payments could look like. It makes the most sense for clients who:
- Want a guaranteed lifetime income stream they cannot outlive
- Are 5-15 years from income activation and want the Withdrawal Base to accumulate
- Value the Income Enhancement doubling for long-term care scenarios
- Want joint-life coverage to protect a spouse’s income if they die first
- Are comfortable with a 10-year surrender period
It is not the right product for clients who:
- Primarily want accumulation without income guarantees
- Need liquidity beyond the 10% annual free withdrawal
- Object to paying 1.05%-1.20% annually in rider fees
- Want flexibility to decline an income benefit
For accumulation-focused alternatives, compare the Reliance Standard Accumulator 7 or F&G Power Accumulator 7. For a shorter surrender period with income, compare the NAC BenefitSolutions 10.
Global Atlantic ForeIncome II Pros and Cons
| Pros | Cons |
|---|---|
| Income Enhancement Benefit doubles income for 5 years if unable to perform ADLs – included at no extra cost | Both illustration indexes are backtested-only (incepted late 2024/early 2025) |
| 3x Withdrawal Base multiplier (Income Multiplier) accelerates income base in strong index years | 10-year surrender period is longer than many competitors |
| Guaranteed Income Builder option offers 10% fixed rollup – completely predictable | Rider fees (1.05%-1.20%) reduce contract value growth |
| KKR-backed carrier (Global Atlantic/Forethought) with A- AM Best rating | Income benefit election is required at issue – no accumulation-only option |
| Lifestyle Payment Option provides higher income in early retirement years | MVA adds complexity to withdrawal planning during surrender period |
| Joint-life payout option protects surviving spouse’s income | Withdrawal Base cannot be surrendered for cash – not a liquid asset |
Frequently Asked Questions
What happens if my contract value reaches zero?
If lifetime income payments exhaust the contract value, Global Atlantic continues paying your guaranteed lifetime income amount from its general account for as long as you (and your spouse, if joint coverage was elected) are alive. This is the core guarantee of the product – and the reason it carries a rider fee.
What is the difference between the Income Multiplier and the Guaranteed Income Builder?
The Income Multiplier (1.05%/yr fee) ties your Withdrawal Base growth to index performance at 3x – higher potential in strong markets, zero growth in flat years. The Guaranteed Income Builder (1.20%/yr fee) adds a fixed 10% to your Withdrawal Base every year regardless of market performance. The Builder is more predictable; the Multiplier has higher upside if index performance cooperates.
Can I take withdrawals before I activate income?
Yes. The standard 10% annual free withdrawal provision applies from the first contract anniversary. However, taking withdrawals reduces your Withdrawal Base proportionally – which reduces your future guaranteed income amount. Most clients defer withdrawals until income is formally activated.
Is Global Atlantic / Forethought financially stable?
Forethought Life Insurance Company holds an A- (Excellent) rating from AM Best. Global Atlantic is backed by KKR, one of the world’s largest private equity and investment firms with over $500 billion in assets under management. The KKR ownership provides a strong capital backstop, though as with all insurance products, guarantees are backed by the claims-paying ability of the issuing insurer (Forethought), not by KKR directly.
How does the Income Enhancement Benefit work?
If you become unable to perform two or more Activities of Daily Living, your annual income payment doubles for up to five consecutive years. For example, if you were receiving $18,000 per year, you would receive $36,000 per year during the qualifying period. There is a 1-year waiting period from issue and a 90-day elimination period. The benefit can only be used once per contract and is not available in California.
Product features, rates, and availability vary by state. Not available in all states. The Lifestyle Payment Option is not available in California. Contact a licensed agent for current rates and state-specific terms. Annuities are insurance products, not bank deposits, and are not guaranteed by any federal agency. Forethought Life Insurance Company is the issuing entity. Global Atlantic Financial Group is the marketing name.
