Global Atlantic Forethought ForeCare Hybrid Annuity and Long Term Care Review – Long Term Care University
Long Term Care University – Question of the Month – 07/15/26
By Aaron Skloff, AIF, CFA, MBA
Q: We read the Long Term Care University article ‘Traditional Versus Hybrid Life and Long Term Care Insurance’ , ‘Hybrid Annuity and Long Term Care’ and ‘1035 Tax-Free Exchange‘. Can you please review the Global Atlantic Forethought ForeCare Hybrid Annuity and Long Term Care (LTC) policy?
Overview. Forethought Life Insurance Company is part of Global Atlantic, Life Insurance Company, an A.M. Best A rated, a wholly owned subsidiary of KKR founded in 2004. The Global Atlantic Forethought ForeCare policy is a Hybrid Annuity and Long Term Care Insurance (also called asset based) policy. With Traditional LTC policies, premiums can be increased and you may not receive any benefits if you do not need LTC. With Hybrid LTC policies the benefits and premiums are guaranteed. The insurance company either: 1) pays you if you need LTC, 2) pays your heirs if you do not need LTC, 3) pays you and your heirs if you need a modest amount of LTC or 4) pays you a refund if you cancel the policy.
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Global Atlantic Forethought ForeCare is Unique Because It Does Not Have an Elimination Period for Home Care. An elimination period is the number of days you pay for your LTC costs out of your own pocket (like a deductible on a homeowners insurance policy). Forecare begins paying for your home care on the first day of care or after 90 days for other types of care.
Global Atlantic Forethought ForeCare Doubles or Triples Your Premium for Tax-Free Long Term Care Expenses. Based on your health, the policy will double your long term care benefits with a Standard approval or triple your long term care benefits with a Premier approval. Given the liberal underwriting requirements, 95% of applications are approved, with 85% approved at Premier (triple) and 15% approved at Standard (double).
Global Atlantic Forethought ForeCare Policy Options. The policy options include: Benefit period of 6 years for an individual policy; Benefit periods of 7 and 7.5 years for a shared policy; Nonforfeiture and Inflation protection of none or 5%.
How Global Atlantic Forethought ForeCare Compares with Other Hybrid Annuity and LTC Policies. Let’s look at a husband and wife, Bill and Sue, who are each 70 years old and reside in Florida. They each pay a $100,000 one-time premium (or $200,000 combined) and are expected to need LTC in 10 years at the age of 80. They are comparing Hybrid Annuity and LTC policies that offer the largest LTC benefits, with at least five years of LTC benefits.
Global Atlantic Forethought ForeCare Outperforms Competitors with the Highest Non-Lifetime Total Long Term Care Benefits. Bill and Sue will each have $4,326 or $6,926 shared monthly and $311,485 or $623,371 shared total LTC benefits. OneAmerica State Life Annuity Care is notable for its 7-day elimination period and unlimited lifetime benefits. OneAmerica State Life Annuity Care II is notable for its highest non-lifetime individual and shared monthly LTC benefit. OneAmerica State Life Indexed Annuity Care is notable for its highest lifetime individual and shared monthly LTC benefit, and that policy values are linked to major market indices.
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Conclusions. Global Atlantic Forethought ForeCare provides a 0-day elimination period for home care, high monthly and total LTC benefits, and that policy values are linked to major market indices. Since premiums vary greatly based on age, health and marital status, request individualized quotes.
Aaron Skloff, Accredited Investment Fiduciary (AIF), Chartered Financial Analyst (CFA) charter holder, Master of Business Administration (MBA), is the Chief Executive Officer of Skloff Financial Group, a Registered Investment Advisory firm. The firm specializes in financial planning and investment management services for high net worth individuals and benefits for small to middle sized companies. He can be contacted at www.skloff.com or 908-464-3060.
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Frequently Asked Questions
Q: What is the Global Atlantic ForeCare hybrid annuity with long-term care benefits?
Global Atlantic ForeCare is a fixed annuity that combines guaranteed, tax-deferred growth with enhanced long-term care (LTC) benefits. Rather than purchasing a traditional LTC insurance policy with ongoing premiums, you make a lump-sum premium payment into the annuity. If you later qualify for long-term care benefits, ForeCare can generally provide two to three times your contract value for qualified LTC expenses, depending on your underwriting approval. If long-term care is never needed, the remaining annuity value belongs to you or your beneficiaries, making it an attractive alternative to “use-it-or-lose-it” traditional LTC insurance.
Q: Who is a good candidate for a ForeCare hybrid annuity?
ForeCare is generally best suited for individuals who have accumulated significant savings, such as money in CDs, savings accounts, or non-qualified investments, and want to reposition a portion of those assets to help protect against future long-term care expenses. It can be especially appealing for retirees or pre-retirees who dislike the possibility of paying traditional LTC insurance premiums for years without ever filing a claim. Those seeking principal protection, predictable growth, and a guaranteed death benefit may also find this type of asset-based long-term care solution attractive. A financial professional can help determine whether ForeCare fits your overall retirement and estate planning strategy.
Q: How does ForeCare compare to traditional long-term care insurance?
Traditional long-term care insurance generally requires ongoing premium payments and only provides benefits if long-term care is needed. ForeCare, by contrast, uses a single premium to fund a fixed annuity that grows tax-deferred while providing enhanced LTC benefits. If you never need care, your annuity value remains available for withdrawals (subject to contract terms) or passes to your beneficiaries. While traditional LTC insurance may provide larger benefit pools for some applicants, ForeCare offers greater flexibility and eliminates the concern that premiums paid over many years could be lost if no claim is ever made.
Q: What long-term care services are typically covered by ForeCare?
Like many qualified long-term care insurance products, ForeCare is designed to reimburse qualified long-term care expenses after the insured meets the benefit eligibility requirements. Covered services typically include nursing home care, assisted living facilities, home health care, adult day care, hospice care, and certain caregiver services, depending on the policy provisions. Benefits are generally triggered when a licensed health care practitioner certifies that the insured cannot perform at least two of the six Activities of Daily Living (ADLs) or has a severe cognitive impairment, subject to the contract’s terms and conditions.
Q: Can existing annuity assets be used to purchase ForeCare?
In many cases, yes. Existing non-qualified annuities may be eligible for a tax-free Section 1035 exchange into ForeCare, allowing owners to transfer assets without immediately recognizing taxable gains while adding long-term care protection. This strategy can be particularly beneficial for individuals holding appreciated annuities that they no longer need primarily for accumulation. However, eligibility depends on IRS rules, contract provisions, and individual circumstances, so professional tax and financial advice is recommended before initiating a 1035 exchange.
Q: What should I evaluate before purchasing a hybrid annuity with long-term care benefits?
Before purchasing any hybrid LTC annuity, compare the amount of long-term care benefits available, inflation protection options, underwriting requirements, liquidity restrictions, surrender charges, interest crediting rates, monthly benefit limits, and how unused contract value passes to beneficiaries. It’s also important to evaluate whether a single-premium strategy fits your retirement income needs and overall asset allocation. Because every insurance company structures hybrid products differently, comparing multiple carriers and illustrations can help ensure you select the solution that best aligns with your financial goals and long-term care objective
