Forethought Financial Group offers two life insurance products: Preneed insurance coverage and the TrustGuard policy. Forethought also offers variable, fixed index and fixed annuities as well as a ForeCare annuity, reports the company.
Preneed insurance covers the costs of a preset funeral arrangement, explains Forethought. The TrustGuard policy covers the insured individual's debts or other financial obligations when he dies.
The variable, fixed index and fixed annuities that Forethought offers provide income when the insured individual retires. With a variable annuity, the value of the annuity may increase or decrease depending on investment performance, notes Forethought. Forethought annuities offer payout options for retirees, including lifetime payments and joint lifetime payments for the retiree's spouse. Each annuity also offers death benefit options, providing a retiree with different options for passing money on to his beneficiaries.
ForeCare is a specific type of fixed annuity that provides long-term care benefits. The purpose of this annuity is to cover the expenses associated with long-term care without depleting a retiree's income, reports ForeThought.
Annuity distributions are subject to income tax, according to ForeThought. An individual who elects to take distributions before reaching age 59 1/2 is subject to an additional 10 percent federal tax penalty.