How it works
Global Atlantic Income 150+ SE Fixed Indexed Annuity: product description and policy
The Global Atlantic Income 150+ SE is a Fixed Indexed Annuity (FIA) plan that offers the annuitant (annuity investor) the opportunity to earn a portion of a market index-linked return without incurring the risk of market downside. This is a suitable plan for individuals seeking a fixed indexed annuity that provides enhanced lifetime withdrawals and aims to grow and protect their retirement savings.
Let’s have a look at the high-level fine print of Global Atlantic Income 150+ SE Fixed Indexed Annuity, and then we will discuss each point in detail.
The Income 150+ SE Fixed Indexed Annuity is almost identical for both policy tenures, except for the crediting strategies and surrender charge schedule. For ease of discussion and better clarity, we will focus on the Income 150+ SE 10 Fixed Indexed Annuity (unless other withdrawal charge policies are mentioned) for the remainder of the article.
How does the Global Atlantic Income 150+ SE Fixed Indexed Annuity work?
Any annuitant (maximum age at the time of policy issue: 85) can purchase the Global Atlantic Income 150+ SE Fixed Indexed Annuity with a minimum initial purchase amount of $10,000, and in return, they will earn market index returns (calculated through a formula that we will discuss shortly), credited as per the chosen crediting period. Apart from the regular crediting period, various events may trigger earnings credit, including free withdrawals, long-term care events, terminal illness or injury events, or when a death benefit is payable. All these interest credits are credited to a bucket called “Contract Value.” This bucket represents your annuity account balance, and all withdrawals are made from it.
For current rates, see Current Rates ↑.
At the same time, a separate bucket called the “withdrawal base” is established, through which the “lifetime annuity payment” is determined. Your Withdrawal Base will grow using a pre-determined growth rate, which we will see in detail in a later part of this review. Again emphasizing, the withdrawal base is only used for determining the lifetime withdrawal amount, and you can’t take any withdrawals from this account. We will return to this when we discuss the “riders” of this annuity later in this review.
The Global Atlantic Income 150+ SE Fixed Indexed Annuity offers the annuitant to choose from one or more of the five indexes (S&P 500 Index, S&P 500 Engle Index, PIMCO Balanced Index, Franklin US Index, and JP Morgan Cross-Asset Strategy Index) to determine their earnings crediting formula. Each index has multiple strategies to choose from. The plan also offers a fixed-rate guaranteed interest strategy to choose from, making a total of 10 strategy options. We will discuss each available index briefly:
1. S&P 500 Index
The S&P 500 index is one of the most popular and oldest indexes in the world. It tracks 500 large-cap publicly traded stocks listed in the United States. It is a reliable index and has often succeeded in the test of time. It is very important to note that, similar to most other annuities, the Global Atlantic Income 150+ SE Fixed Indexed Annuity offers the S&P 500 index with cap rates and performance triggers in place, meaning that your interest-earning capacity is limited. These rates are subject to frequent changes; I will discuss them in detail shortly.2. S&P 500 Engle IndexThe S&P 500 Engle Index is a volatility-managed index that provides exposure to the S&P 500 while dynamically adjusting risk based on market conditions. It uses a statistical volatility forecasting model to scale equity exposure up or down, aiming to keep volatility within a target range. During periods of higher market volatility, the index reduces equity exposure and increases allocations to cash or fixed-income components, while in calmer markets it increases exposure to equities. As a result, the index seeks to deliver smoother returns than the traditional S&P 500, though this risk control also means its upside potential may be lower during strong bull markets.3. JP Morgan Cross-Asset Strategy IndexThe J.P. Morgan Cross-Asset Strategy Index is designed to allocate exposure to global asset classes through a portfolio of up to seven ETFs and futures-based indices. The index was created with the aim of maintaining a stable level of volatility. The portfolio provides exposure to equities, fixed income, and commodities across various sectors, including real estate, infrastructure, corporate bonds, gold, and Brent crude oil. Additionally, the index is designed to mitigate increases in volatility above certain thresholds by reducing or eliminating exposure to all assets.4. PIMCO Balanced IndexThe PIMCO Balanced Index allocates to U.S. large-cap equities, U.S. fixed income, and cash. Weights are rebalanced daily based on two mechanisms aimed at navigating changing equity and bond markets. As market volatility increases, the allocation to equities decreases in favor of the bond allocation in order to stabilize risk and potentially mitigate losses. As interest rates trend higher and bond prices fall, the Index targets lower treasury futures exposure with the potential to take a short position that can enhance returns.5. Franklin US IndexThe Franklin U.S. Index is a rules-based equity index designed to provide diversified exposure to U.S. large- and mid-cap stocks while incorporating systematic risk-management features. The index typically emphasizes quality, valuation, and momentum factors to select and weight constituents, aiming to deliver more stable performance than a traditional market-cap-weighted index. By balancing growth potential with downside risk controls, the Franklin U.S. Index seeks to offer a smoother return profile, though this structured approach may limit upside participation during strong bull markets.
Among these indices, I prefer the strategies that utilize the S&P 500 Index, PIMCO Balanced Index, and Nasdaq-100 Agile Index due to their proven historical track record and performance.
Note: In addition to allocating funds in the following indexes, the annuitant also has the option to allocate funds at a fixed interest rate. These Fixed Rates tend to change from time to time. You can view the latest rates of this annuity here.
Rates and costs
Rates, bonus, surrender charges, and costs
The Earnings Crediting Formula
The earnings crediting formula is the most important part of this annuity discussion. It is essential to note that we don’t simply receive the index return credited to our annuity. There are a few rate-limiting mechanisms (in the form of cap rates, spreads, and triggers) that the company has in place that affect our earnings. These rates are subject to change over time, and the updated rates can be checked on the company’s website at any time.
Let’s have a look at different terms that are used by the company in the Global Atlantic Income 150+ SE chart rate:
Participation Rate
The participation rate describes the annuitant’s participation percentage in the return of an index. For example, suppose the participation rate is 150%, and the index returned 4% over the agreed time. In that case, the annuitant will be eligible for 150% of the return, i.e., 6%.
Participation Rate simulator
Shows how the contract credits a percentage of a positive index return.
5%
Formula
10% x 50% = 5%
This is a one-year teaching example only. Actual contract credits depend on the index, strategy term, allocation, renewal rates, state rules, and carrier contract language.
Cap Rate
This refers to the rate at which your interest-earning capacity is capped. For example, if an index returns 12% but the contract’s cap rate is 6%, in this situation, the annuitant will be eligible for an interest credit of 6% only. It doesn’t matter how much the index goes above the cap rate; the maximum interest that can be earned is the cap rate.
Cap Rate simulator
Shows how a cap limits the credited return when the index year is higher than the selected cap.
8%
Formula
min(10%, 8%) = 8%
This is a one-year teaching example only. Actual contract credits depend on the index, strategy term, allocation, renewal rates, state rules, and carrier contract language.
Performance Trigger Rate
Index Option with Declared Rate: A flat or positive index return triggers the declared interest rate to be credited to the contract value. If the index return is negative, no interest is credited, but there will be no loss, and the contract value will remain the same. The declared interest rate is set at contract issue and applies for the entire withdrawal charge period.
Performance Trigger Rate simulator
Shows how a flat or positive index year can credit the declared trigger rate.
6%
Trigger activates
Formula
10% is flat or positive, so the trigger credits 6%
This is a one-year teaching example only. Actual contract credits depend on the index, strategy term, allocation, renewal rates, state rules, and carrier contract language.
Fixed Account Rate
If you opt for a fixed account rate, you simply earn the fixed rate for a particular period specified by the company before your policy begins. These rates usually tend to be low/at par as compared to other fixed avenues, such as CDs and MYGAs, so you should avoid fixed rates in a general scenario.
Bailout Provision
If the company lowers any rate below the Bailout Cap rate, you’ll have full access to withdraw your annuity’s accumulated value - free of any charges.
Accessing your Money
Should your needs change unexpectedly, and you need to take an excess withdrawal (a withdrawal that is above the free withdrawal amount available in a given contract year), you may be entitled to access additional monies, although certain charges and penalties may apply. Any amount withdrawn in excess of the remaining free withdrawal amount is subject to a Surrender Charge. Below is the Surrender Charge schedule for the Global Atlantic Income 150 SE+ Fixed Indexed Annuity.
Market Value Adjustments - In case you need to surrender your policy, a Market Value Adjustment (MVA) will be applied to the portion of the withdrawal or surrender that exceeds the free withdrawal amount during the withdrawal charge period. The surrender charge schedule varies by annuity tenure and also differs for some states. For a quick comparison of surrender charges across different Global Atlantic products, you can visit their annuities product page.
The surrender charge of Global Atlantic Income 150+ SE Fixed Indexed Annuity is in line with all the other annuity issuers.
Once the surrender charge period ends, you can typically access your full contract value without fees.
An annuitant can also convert the contract into a stream of guaranteed income, known as annuitization. They can choose from various payout options designed to meet different needs.
- Life Only – Provides income for as long as you live.
- Joint and Survivor Life – Continues payments over two lifetimes, often used by couples.
- Life with Period Certain (up to 30 years) – Pays income for life, but guarantees payments for a minimum period even if death occurs earlier.
- Period Certain (up to 30 years) – Provides guaranteed payments for a set number of years, regardless of lifespan.
- Single Life or Joint Life with Cash Refund – Ensures that if the annuitant(s) pass away before receiving payments equal to the original premium, the difference is refunded to beneficiaries.
- Single Life or Joint Life with Installment Refund – Similar to the cash refund, but any remaining balance is paid out over time in installments.
These options provide flexibility in balancing lifetime income needs with legacy goals, allowing you to customize how and when funds are accessed during retirement.
Death Benefit
Upon the annuitant’s death, the beneficiary will get the greater of (i) the Account Value or (ii) the Surrender Value
Riders and waivers
Riders and waivers
For current rates, see Current Riders ↑.
The GLWB riders offer the annuitant to establish a withdrawal base, which grows predictably over the years through several increases prior to activating your guaranteed income.
For example, an initial purchase amount of $100,000 would lead to a Withdrawal Base of $120,000 on day one. Subsequently, for the next four years, there are additional annual boosts of 7.5% based on the original purchase amount, provided there are no withdrawals. In monetary terms, this means an additional $7,500 would be credited to the Withdrawal Base each year for four years, resulting in an additional credit of $30,000. The total additional credit, including the $20,000 initial credit, becomes $50,000.
At any point, the contract also allows for the activation of guaranteed lifetime income. Upon activation, the Withdrawal Base ceases to grow, and no more income boosts are credited. However, the contract value itself can still grow.
Additionally, there's a provision for a significant income boost if the individual defers activating their guaranteed income for at least 10 years from their purchase date. On the first day of the 10th year, a special boost is credited, equivalent to 150% of all the interest credits earned during the first nine years (adjusted for any withdrawals). For instance, if $50,000 is earned in interest credits over those years, an income boost of $75,000 would be credited, taking the Withdrawal Base to a total of $225,000.
After this 10-year mark, the income boost potential is fully utilized, although the contract value may continue to appreciate.
Your lifetime income payment depends on your withdrawal base at the time you start lifetime income withdrawals. Thus, the later you start your lifetime income withdrawals, the more your lifetime income withdrawal amount.
To calculate the Lifetime Income payments, the following formula is used:
Withdrawal Base at the time of first withdrawal * GLWB Lifetime Payout Factor
The lifetime income withdrawal percentage is based on when you begin your lifetime income withdrawals and whether you opt for single-life or joint-and-survivor withdrawals. The later you begin your lifetime payments, the more annual payments you get.
Joint payouts are based on the Attained Age of the younger life. And you don’t have to pick single or joint life until you start your income.
Important: Do note that Lifetime Income Withdrawals may be reduced or may stop if you take Excess Withdrawals from your contract. If Excess Withdrawals, Withdrawal Charges, or Market Value Adjustments (MVAs) reduce the contract’s Accumulated Value to zero, your Lifetime Income Withdrawal Payments will stop, and the rider will terminate. If you do not make excess withdrawals, your Lifetime Income will continue for the rest of your life, even if your annuity’s accumulated value becomes zero.
Also, as with most annuities, the Global Atlantic Income 150+ SE FIA has free in-built nursing home and terminal illness waivers.
Nursing Home Waiver: After the first contract year, an annuitant can withdraw up to 100% of the contract’s accumulated value if he is confined to a Qualified nursing home for at least 90 consecutive days. No withdrawal charge or MVA applies if the owner qualifies for this benefit. Diagnosis must occur after the contract is issued, and written proof with supporting documentation is required from a qualified physician.
Terminal Illness Waiver: After the first contract year, an annuitant can withdraw up to 100% of the contract’s accumulated value if he is diagnosed with a terminal illness. No withdrawal charge or MVA applies if the owner qualifies for this benefit. Diagnosis must occur after the contract is issued, and written proof with supporting documentation is required from a qualified physician.
Contract/Administrative Charge
The Global Atlantic Income 150+ SE Fixed Indexed Annuity levies no annual contract or administrative fees.
Carrier
Company details
You must always keep in mind that, unlike CDs, annuities are not guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other federal insurance agency. An annuity's "guarantee" is only as strong as the insurance company that issues the annuity, so it is always important to assess the issuing company before buying an annuity.
Forethought Life Insurance Company
Forethought Life Insurance Company has been in business since 1980. It is a direct subsidiary of Global Atlantic Financial Group, which is one of the largest providers of fixed and fixed-indexed annuities in the US, serving more than two million policyholders through its retirement and life insurance products. It has been regularly in the top ten Fixed Indexed Annuity Sales. It offers annuities for individuals through a network of banks, broker-dealers, and insurance agencies, as well as life insurance for individuals. Global Atlantic is also a leader in the institutional channel, providing customized reinsurance solutions to its life and annuity company clients. It offers capabilities across the block, flow, and pension risk transfer reinsurance to meet its clients’ needs.
It is rated as follows by the rating agencies:
| Rating Agency | Rating |
|---|---|
| AM Best | A (3rd of 13 ratings) |
| S&P | A (6th of 21 ratings) |
| Fitch Ratings | A (6th of 19 ratings) |
| Moody's Investors Service | A2 (6th of 21 ratings) |
Global Atlantic Financial Group has managed to maintain decent ratings for many years. It is considered to be strong and stable financially. In February 2021, Global Atlantic became a majority-owned subsidiary of the KKR public company, operating as a standalone business. KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit, and real assets, with strategic partners that manage hedge funds. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business.
Going by the operating history and the partnership with KKR & Co., we can safely gauge that you can trust your savings with Forethought Life Insurance/Global Atlantic Group.
Pros
The plan offers the S&P Index with multiple crediting methodologies
There are plenty of good index options to choose from
Free Confinement and Terminal Illness Waiver Benefit
This no-fee rider is automatically included for owners under age 65 and includes both a Qualified Nursing Care and Terminal Illness Benefit.
Multiple Payout Options
Lump sum or Annuitization option with Life Only, Life with Period Certain, Joint and Survivor Life, etc.
Confirm before buying
Rider cost is calculated as a percent of the withdrawal base (but deducted from account value), which is always higher than the account value, thus translating to a higher cost.
Significantly lower caps and participation rate than other Global Atlantic annuities like ForeAccumulation II FIA.
Conclusion
Conclusion
With the advancements in healthcare and technology, the average American today lives longer than ever. So, it’s very important to have a stream of income that can grow safely and steadily and have the ability to provide a guaranteed income during retirement years. This not only helps you mitigate the risk of outliving your income but also ensures that you continue to live a decent life even in your retirement.
The Global Atlantic Income 150+ SE annuity is a straightforward product that helps you grow your savings with much less risk. Through its GWLB rider, it offers the annuitant enhanced lifetime withdrawals, besides the principal protection and the opportunity to participate risk-free in the market index.
If you are considering buying a Fixed Indexed Annuity for lifetime withdrawals that you can’t outlive, the Global Atlantic Income 150 SE+ FIA may be a decent product to look at.
If you are considering buying a Global Atlantic Fixed Indexed Annuity that works for accumulation, you might consider checking out Global Atlantic ForeAccumulation II FIA.