As we continue our reviews of the best life insurance companies in the United States, today’s spotlight will be on Forethought Life Insurance Company. Another slightly niche carrier, Forethought Life has a focus on final expense insurance, also called burial insurance, to help consumers leverage against end of life expenses.
If you or a family member is looking to cover the essential, end of life expenses, you may want to explore Forethought as a potential candidate to host your coverage. But they aren’t for everyone.
Just like all other reviews, our Forethought Life Insurance Company review is our own opinion, and we advise everyone to take advantage of our free quote tool in the sidebar to see quotes from more than 50 different life insurance carriers.
Our Forethought Life Insurance Company Review
Beginning with its history dating back to 1985, Forethought Life Insurance Company began as a subsidiary to Hillenbrand Industries, who was a Fortune 500 company at the time. Within the next 7 years, Forethought would have already reach its first major milestone of more than $1 billion of insurance in force.
The company would continue to grow, surpassing $1 billion in assets two years later, and doubling its in force insurance to over $2 billion by 1995. In just another year, they would become the industry leader for insurance policies in the preneed division.
Seeing the continued growth, investors in the Devlin Group led Forethought to it’s first independent status in 2004, where it was sporting more than $4 billion in insurance in force. This new position allowed them to become a nationwide business, which helped to keep the company growing even more.
It was in January of 2014 where they joined the ranks of Global Atlantic Financial Group Limited. Today, they remain a part of Global Atlantic and growth continues.
Forethought Company Ratings
Considered one of the best burial life insurance companies by many, they have proven themselves financially strong, year after year.
A.M. Best agrees, having awarded them a credit rating of “A-” most recently. Standard & Poor’s did the same, giving Forethought an “A-” as well, although Moody’s came in slightly lower, at “Aa3“. These combined, they’ve achieved a Comdex score of 65.
The focus on middle America and securing coverage for seniors, Forethought Life adheres to the pre-planning market needs through a couple different final expense types of products. In addition, they offer annuities to help retirement focused individuals utilize tax advantaged methods to accumulate funds.
Their first product, Preneed Insurance Coverage, is used strictly to help consumers pay for funeral and funeral related expenses, and nothing more. It’s a very basic policy, and allows the insured or owner to make arrangements with a funeral home in advance, so the policy’s proceeds can expedite matters for grieving family members. However, it applies only to Forethought Funeral Planning Network affiliated partners.
Another option, named TrustGuard Gold, is a combination of whole life insurance for burial needs and a trust with explicit direction for fund use. This can help many people safeguard the funds they’ve set aside to be used for burial expenses and other final needs, as opposed to being collected first from creditors. This additional layer of protection offers additional peace of mind.
On the annuity side, Forethought offers several product choices including fixed annuities, fixed indexed annuities, and variable annuities offered through Forethought Distributors. Their products offer the ability to have a standard death benefit which is leveraged based on the amount of funds in the annuity, and the proceeds act just as a normal life insurance policy would. The ability to meet long term care needs can also be met utilizing their annuities.
Final Thoughts For Forethought Life Insurance Company
Forethought Life Insurance Company is a good resource for those who are looking only to meet the costs of burial and other funeral related expenses, however it really just meets the needs of a small demographic. Several other companies offer comparable products, but the unique aspects of working with the nationwide funeral planning network and trust creation in attachment to their products are great features.
|Company Name (and Subsidiaries)||Global Atlantic Financial Group Limited (Parent)|
Forethought Financial Group
Forethought Life Insurance Company
Forethought Distributors, LLC
|Company Ratings||A.M. Best (A-)|
Moody’s Investors Services (Aa3)
Standard & Poor’s (A-)
|Headquarters (Address, Phone, Web)||One Forethought Center|
Batesville, IN 47006
|Policy Types Available||Whole Life|