Optional Premium Enhancement Rider Change and New Requirement Effective 9/23/24
Global Atlantic is committed to diligently managing our business. In response to a challenging rate environment, we will be making the following change to our ForeAccumulation II fixed index annuity. Effective September 23, 2024:
The Optional Premium Enhancement Rider percentage will DECREASE to 10%.
The Optional Premium Enhancement Rider provides an interest credit enhancement to the contract value, based on the Premium Enhancement percentage at the time of issue. It is available on the 10-Year Withdrawal Charge Period Only.1,2 The Optional Premium Enhancement Rider must be elected at the time of issue.
Availability applies to new business only. Not all products, features and materials are available at all firms or in all states.
New Business Rules
As part of the DECREASE there will be a new attestation requirement.
New business application signed (paper) or submitted (electronically) prior to 9/23, received on/before 10/04, Attestation form not required.
New business application signed (paper) or submitted (electronically) on/after 09/23, received prior to 10/25, Attestation form required.
New business received after 10/25; Attestation form not required.
NAIC Product Training
Financial professionals who have previously completed NAIC product training for ForeAccumulation II after January 16, 2024, will not need to retake product training. The NAIC code will remain the same.
Marketing Materials
Impacted marketing materials will be updated and available on September 23, 2024.
1 Optional Riders, such as Enhanced Death Benefit, Premium Enhancement Rider, or Growth Accelerator Riders are not available with each other.
2Election of the optional Premium Enhancement Rider will result in lower caps, lower participation rates, lower trigger rates, lower fixed interest rates, and higher spreads. Early termination or death will negatively impact the product’s contract values. There is no guarantee that electing a product with premium enhancement will perform better than electing a product without a premium enhancement rider or that electing this Rider will result in a higher contract value at the end of the contract. A Market Value Adjustment may be assessed on the remaining portion of the withdrawal in excess of the Free Withdrawal Amount. Available on 10-Year Withdrawal Charge Period ForeAccumulation II. Premium Enhancement Recapture Charge will be assessed on any cumulative withdrawals that exceed the Free Withdrawal Amount, to any annuitization during the first Contract Year, and to Death Benefits during the first contract year, proportionally adjusted to reflect the amount of the Premium Enhancement withdrawn, following the Premium Enhancement Recapture Charge Schedule (state variations apply) The election of the Premium Enhancement Rider may be more advantageous in flat or negative market environments. Electing the Premium Enhancement Rider will result in lower Cap Rates and other interest crediting adjustments. There is no guarantee that electing this Rider will result in a higher contract value at the termination of the contract. The Premium Enhancement Rider cannot be elected in conjunction with other optional riders such as the Enhanced Death Benefit Rider or strategies with the Growth Accelerator Rider.