Why it earned this rating
Our assessment
ForeCare earns a Good Option rating because it delivers a genuinely useful LTC benefit structure — a care multiplier that can stretch the account value two to three times for covered care expenses — inside a simple fixed annuity wrapper. Within the hybrid LTC-annuity peer group it is a credible, understandable product. What holds it to a 4.0 rather than higher is the long surrender period relative to the care-planning use case, the fact that monthly rider fee amounts are not fully disclosed in the available source materials, and the absence of any index-linked growth potential to offset the ongoing fee drag.
The short version
ForeCare is a single-premium fixed deferred annuity with a built-in long-term care benefit. The idea is straightforward: you deposit a lump sum, it grows at a declared fixed rate, and if you eventually need qualifying care, the insurer will pay out at a multiplied benefit — two or three times the account value — to cover those costs. If you never need care, your heirs receive the contract value as a death benefit. It is a care-funding strategy dressed in an annuity chassis, and for buyers who like the idea of self-funding care risk without the use-it-or-lose-it stigma of a standalone LTC policy, that is a meaningful design.
Key facts
The full review
Is Forethought ForeCare a Good Annuity?
It depends on what you are buying it for. As a care-funding vehicle for someone who wants to cover long-term care risk without a standalone LTC policy, ForeCare is a reasonable option — the multiplier structure is real and the fixed annuity base provides growth and a death benefit. As a pure fixed annuity competing on yield against MYGAs or short-term fixed products, it is not the right comparison because the ongoing LTC rider fee will reduce the net return. The question is whether the LTC benefit is worth that fee, and that is a personal planning decision, not a product quality problem.
Why Someone Would Buy This Annuity
The appeal is care-funding certainty without pure insurance risk. A standalone LTC policy charges premiums that are gone if you never make a claim. ForeCare does not work that way — your principal is invested, earning a declared rate, and the full contract value passes to heirs if you die without needing care. The LTC multiplier is layered on top. For someone who wants to earmark a lump sum for potential care costs while keeping the underlying dollars working, that structure is compelling. It also avoids the health underwriting intensity and premium-increase risk of traditional LTC insurance.
Who This Annuity Is Best For
I think ForeCare is best for someone in their late 50s to early 70s who has a defined pool of long-term retirement dollars, is genuinely concerned about the cost of future care needs, and prefers a self-funding approach to standalone LTC insurance. It fits non-qualified dollars well — there is a favorable tax treatment for qualified LTC benefit payments. It is less appealing for someone who needs liquidity within 10 years, wants maximum fixed-rate yield, or whose primary goal is accumulation rather than care protection. Not available in New York.
What You're Really Buying Here
You are not buying a pure interest-bearing account. You are buying an insurance contract where part of your return is being exchanged for a future care benefit guarantee. The LTC multiplier is the product's core value proposition — the fixed declared rate is real, but it should be evaluated net of the ongoing monthly rider charge, not at face value. The account grows, the LTC rider amplifies that account value if care is needed, and the carrier is taking on the actuarial risk that a meaningful portion of policyholders will claim the multiplier. That is the actual trade being made.
How the Core Feature Works
The LTC rider — formally called the Rider for Long-Term Care Benefits with ForeCare Multiplier — pays an ongoing monthly benefit when you qualify for long-term care (typically inability to perform two of six activities of daily living, or cognitive impairment). The benefit amount is based on a multiplier applied to the contract value at the time care begins: two times or three times the account value, depending on the benefit option selected at issue. That total benefit pool is then drawn down monthly as care expenses are incurred.
The monthly charge for the rider is locked in at issue and is expressed as a rate per dollar of contract value. The brochure references this charge but the specific rate varies by issue age and benefit option and was not explicitly stated in the available source materials — so if you are comparing this product to alternatives, ask for the current locked-in rate before making any decisions. The total rider cost compounds meaningfully over a 10-year accumulation period, and the net declared rate after that charge is what you are actually earning.
Optional add-ons include an Inflation Protection rider (which increases the benefit over time) and a Nonforfeiture rider (which preserves some benefit if you surrender or lapse the contract). Both carry up-front charges deducted from the contract value at issue.
Why the Secondary Feature Matters
The fixed declared rate and the death benefit are the secondary features that give ForeCare its dual-purpose appeal. The declared rate is guaranteed annually (with a 1% minimum floor), and the contract value — whatever it has grown to — passes to heirs as a death benefit if you die before needing care. That is not how traditional LTC insurance works. The result is that ForeCare behaves more like an asset you own than a premium you pay: money-in exists as a contract value until it is either drawn as a care benefit or paid out as a death benefit. For some buyers, that distinction is the reason they pick this type of product over a standalone policy.
Liquidity and Surrender Schedule
The free-withdrawal provision allows 10% of the beginning-of-year contract value annually starting in Contract Year 1. That is a reasonable provision for routine distributions, but the 10-year surrender schedule — starting at 8% and stepping down to 0% — means this money should genuinely be considered illiquid for the full decade outside of that 10% window.
One important interaction to understand: if you file an LTC benefit claim, those monthly benefit payments reduce the amount available for free withdrawals on a pro-rata basis. And if you take the free withdrawal in a given year and then fully surrender, surrender charges apply to both the free amount and the remaining contract value. A market value adjustment also applies on amounts subject to surrender charges, meaning the effective penalty in a rising interest rate environment can be higher than the schedule alone suggests.
The contract is not designed for emergency cash access. RMD treatment was not explicitly addressed in the available source materials — if the contract will be held in a qualified account, confirm RMD handling with the carrier or agent.
Fees and Tradeoffs
The ongoing LTC rider fee is the primary cost to understand. It is locked in at issue as a monthly charge rate per dollar of contract value, and it continues for as long as the rider is in force. Because it is expressed as a rate applied to the full contract value each month, it behaves like an annual percentage fee — and over a 10-year accumulation period, that fee meaningfully reduces the net return on the declared rate. The specific monthly charge rate was not fully disclosed in the available brochure materials; it varies by issue age and benefit option selected.
The optional Inflation Protection and Nonforfeiture riders carry up-front charges deducted from contract value at issue, further reducing the effective starting balance.
The structural tradeoffs beyond fees: this is a fixed declared rate product only, so there is no index-linked upside. The declared rate is set annually and subject to a 1% minimum floor. For accumulation-focused buyers, those mechanics are a significant limitation compared to what a comparable fixed annuity or short-term MYGA might offer without the care-benefit overhead.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 10 years |
| Issue Ages | 50-80 |
| Minimum Premium | $35,000 |
| Crediting Methods | Fixed declared rate |
| Free Withdrawal | 10% of beginning-of-year contract value annually, available starting Contract Year 1 |
| MGSV | 87.5% of premiums at 1% |
| Death Benefit | Contract Value during accumulation period; death benefit payable at any time before annuitization |
| Income Rider | Not available |
| Premium Bonus | None |
| Availability | Available in most states. Not available in New York. State variations apply (some riders restricted in certain states). |
Carrier snapshot
Legal Entity: Forethought Life Insurance Company
Parent: Global Atlantic Financial Group
A.M. Best Rating: A- (Excellent)
Global Atlantic is a large institutional insurance holding company. Forethought Life Insurance Company is its life and annuity subsidiary. The A- rating from A.M. Best reflects excellent financial strength per the rating agency's scale, though the carrier-profile documents available were dated — confirm current ratings before issue.
Final take
ForeCare is a coherent product for a specific planning need: pre-funding long-term care costs using a lump-sum annuity instead of ongoing LTC insurance premiums. The LTC multiplier is the reason to consider it, the fixed declared rate and death benefit are the reasons to hold it even if care never materializes, and the ongoing rider fee and 10-year surrender schedule are the reasons to think carefully before committing.
It is not a competitive choice for someone primarily optimizing yield. It is not the right product for someone who may need liquidity in under 10 years. But for a buyer who genuinely wants to earmark a portion of retirement savings for care costs, wants to keep that money working in the meantime, and values not losing the premium if care is never needed, ForeCare does what it advertises. Evaluate it against the current locked-in rider charge rate — that number is the key input for any honest comparison to alternatives.