Forethought Freedom

Issued by Forethought Life Insurance Company

SM

Agent Guide

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Table of Contents
The Forethought FreedomSM Advantages .......................................... 2 Forethought FreedomSM Market ............................................................ 3 Forethought FreedomSM Product .......................................................... 4 Agent Responsibilities ................................................................................ 5 Application Process ..................................................................................... 7 Completing the Application ..................................................................... 8 Forethought Contact Information ....................................................... 11

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Forethought Freedom Advantages

SM

With Forethought Life Insurance Company (Forethought), you can be confident your clients security comes first. Weve been providing final expense products for over a quarter century. Forethought Life Insurance Company is a stable and secure financial institution and is consistently rated A- Excellent by AM Best. As our valued partner, we want to provide you the necessary tools to positively impact the lives of the families and communities you serve. The following guide was created to make the Forethought FreedomSM application and underwriting interview process as easy as possible for you and your client.

Why Forethought Freedom ?

SM

Simplified-issue whole life product Comprehensive Underwriting Medical Conditions Guide Medication Listing Online, fillable applications available in all states1 Supplemental Benefits at no additional cost* Accelerated Death Benefit Accidental Death Benefit Grandchildrens Benefit Forethought UniversitySM Training & CE Opportunities Access to both live and recorded webinars Online continuing education through www.successce.com Access to Online Reporting at www.forethought.com Point-of-sale interviews with decisions rendered in less than 15 minutes Product available in 48 states and the District of Columbia* Low, competitive premiums Commissionable policy fee and commission advance for qualified agents No commission reduction for Graded or Return of Premium death benefit

Product not available in NY or WA. * All underwriting classes and supplemental benefits not available in all states.
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Forethought Freedom Market

SM

Forethought FreedomSM is a great choice for your clients final expense needs. Low premiums, easy to understand policy language and a simple underwriting process combine to make this a prime product for the following: The Silent Generation Approximately 32 million people Born from 19301945 Average median income of $25,000 Modest and conservative Seeking protection for their family The Baby Boomer Generation Approximately 77 million people Born from 19451960 Average median income $42,000 Representing $1 trillion in annual spending power Preparing for their retirement years

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Forethought Freedom Product

SM

Forethought FreedomSM is a whole life insurance product designed to help your client cover the costs associated with end-of-life expenses. These include funeral expenses, medical bills, and other obligations that may occur when the client passes away. In addition to being a simplified-issue product, Forethought FreedomSM provides your families with a unique value offering. Following are highlights of the benefits offered with this product. FORETHOUGHT FREEDOMSM PRODUCT HIGHLIGHTS Underwriting Classes1:
Level Death Benefit Graded Death Benefit Return of Premium Death Benefit Male/female Smoker/non cigarette smoker (non cigarette smoker is defined as not having used cigarettes in the last 12 months)

FORETHOUGHT FREEDOMSM SERvICE HIGHLIGHTS Additional Benefits

Upon death of the insured, beneficiaries receive the full policy amount, less loans or premium due, within 48 hours 6 Quick policy turnaround Option of policy delivery to agent or client Point-of-sale interviews with decisions rendered in less than 15 minutes

Premium Modal Factors:

Monthly EFT ................................. 0.0865 Quarterly........................................ 0.2600 Semiannual ................................... 0.5150 Annual ............................................ 1.0000

Premium Calculation Example:

Example: 60 year old, nonsmoker, male $10,000 face amount Monthly APA premium for life Level: Full death benefit $45.00 annual premium x 10 = $450.00 Annual policy fee + 39.00 Annual premium $489.00 Monthly APA mode factor x 0.0865 Monthly APA premium $42.30

Issue Ages:
Life Pay Level ........................................................5080 Graded ....................................................5080 Return of Premium ............................5080

Face Amounts:
Level Graded Return of Premium Min. $2,500 $2,500 $2,500 Max. $25,000 $15,000 $10,000

Forethought Planning Tools via www.forethought.com/ planning tools

End-of-life planner Retirement planning tools

Supplemental Benefits1, 2:
Accelerated Death Benefit Provides payout of 97% of the base policy face amount if a licensed physician determines a life expectancy of six months or less4 Accidental Death Benefit Pays an amount equal to the Face Amount, in addition to the Face Amount, if death is due to a covered accident. This benefit is available immediately3 Grandchildrens Benefit Provides coverage for eligible grandchildren ages six months up to 18 years old. An eligible grandchild is determined to be natural or legally adopted. The benefit amount is $5,000 or the base policy face amount, whichever is lower, and will be paid only one time. The benefit does not have a conversion privilege. 5

Death Benefits1:
Level Full face amount and Supplemental Accidental Death Benefit available Graded Non-Accidental Death = Percentage of face amount from policy issue Within 1st Year = 30% of face amount Within 2nd Year = 70% of face amount In year 3 + = full face amount Accidental Death = Full face amount and Supplemental Accidental Death Benefit available Return of Premium Non-Accidental Death = Return of Premium (percentage based) from policy issue Within first two years = 110% of premium paid In year 3 + = full face amount Accidental Death = Full face amount only Supplemental Accidental Death Benefit not available

Not available in all states. Coverage may vary state by state. Not all supplemental benefits are available in all states. 3 Available to issue ages 50 through 70 only. Coverage terminates on the policy anniversary following attained age 75. Not available for all risk classifications. 4 Less any policy loans, premiums due, and a transaction fee. The policy terminates following payment of the Accelerated Death Benefit and cannot be reinstated. Not available for all risk classifications. May not be available during the first 12 or 24 policy months. 5 All coverage under this benefit terminates on the earlier of the payment of one Grandchildrens Benefit or termination of the base policy for any reason. Grandchildren age 18 and over at policy issue will not be covered. Coverage for any particular grandchild will end on his or her 22nd birthday. 6 Certain restrictions apply.
1 2

Annual Policy Fee:

$39.00 (commissionable)

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Agent Responsibilities
Agents shall not use or authorize any advertisement, circular, company logo, news release or other communication using Forethoughts name or our product names (whether written, audio or visual) without prior written approval by us. Agents must not disclose any confidential information to any unauthorized person or entity. Without limiting the generality of the foregoing, confidential information of Forethought includes information regarding computer program processes, products and rate setting, names and addresses and any other personal financial or health information of any of Forethoughts policyholders. Agents are authorized to solicit applications for insurance on such plans as offered by Forethought, to collect the initial premium, and to perform such other duties as Forethought may require. Agents are not authorized to make, alter, or discharge policies or any other contracts for Forethought, or to waive forfeitures, grant permits, make extra rates for special risk, or bind Forethought in any way. An agent must be a licensed resident and/or non-resident (if applicable) producer, contracted with Forethought, and receive a Forethought writing number, prior to soliciting business, and before taking an application for insurance in these states. Agents must remain in compliance with all applicable anti-money laundering laws and regulations and continuing education requirements. Agents should fax an application with a voided check to Forethought at 1-877-432-1646 or email it to final.expense@forethought.com. Agents shall not, under any circumstances, pay or allow, or offer to pay or allow any rebate of premiums in any manner, directly or indirectly, and shall not violate any of the laws relating to the subject of insurance of any state in which the agent may be acting on behalf of Forethought. Agents will not, directly or indirectly, engage in any marketing activities with the intent or effect of replacing in-force Forethought life insurance business. Should such replacement activity take place, commissions will be adjusted according to company rules. Agents shall inform their prospective client, prior to commencing a life insurance sales presentation, that he or she is acting as an independent life insurance agent and inform the prospective purchaser of the full name of the insurance company which the agent is representing to the buyer.

Advertising

Agent access and communication

Authority of agents

Contracts and licenses Market conduct Policy submission

Rebating

Replacement

Solicitation

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Agent Responsibilities
Agent requirements An agent MUST be assigned a writing number before taking an application. Application and initial payment requirements Use the Forethought FreedomSM New Business Packet (NBP) approved for the state in which the application is signed. NBPs are available at www.forethought.com. An original application or legible faxed application along with a copy of the initial check, voided check or savings deposit ticket and state required forms, including replacement forms, must be submitted to Forethought Life Insurance Company (FLIC). Application submission An original application or a legible faxed application along with a copy of the initial check will be accepted. It is the agents responsibility to mail the form of payment immediately following the underwriting process. Any changes or corrections on the application must be initialed by the applicant. No errors covered with correction fluid will be accepted. Backdating The procedure for an applicant to save age will be allowed up to six months. If you take advantage of this option, you must include all additional back premiums required. Commissions Commissions are paid seven days after the Initial Premium draft. The Initial Premium draft is determined by the date requested on the application. Policy fee is commissionable. Initial payment No agent or agency checks, CODs, money orders or cashiers checks will be accepted for premium payment. Checks will be accepted as initial payment on monthly Electronic Funds Transfer (EFT). However, the check will be voided and placed in the policy file and the owners initial payment will be electronically drafted. Check payment via Direct Bill is the only option for annual, semi-annual, and quarterly billing modes. FLIC may attempt to secure premium a second time when the first attempt is returned for insufficient funds. FLIC will not be responsible for overdraft charges. Insurable interest Policyowners and beneficiaries must have an insurable interest in the life of the insured. This means they have a relationship by blood, marriage, or would suffer financial loss if the insured dies. Insured consent ALL applications must have the consent and signature of the applicant. If the applicant signs with an X or the signature is not legible, we require the applicants signature to be witnessed by someone other than the agent. Policy Applications must be dated the day the application is completed. Only applications that are signed within the preceding 30 days of receipt at the processing location are processed. Coverage is not effective until the Initial Premium has been deposited and the policy has been issued. An applicant may select a draft date for the Initial Premium no more than 30 days from the application signature date. The Subsequent Premium draft date is the date FLIC will draft the premium, each month, after the Initial Premium draft. The Subsequent Premium draft date may be different from the Initial Premium draft date but no more than 30 days beyond the Initial Premium draft date. Draft dates must be between the 1st and the 28th of the month. Policy rewrites and re-dating are not allowed. Reinstatement Policy reinstatements are allowed up to 3 years from the Paid To Date with full payment of premium to bring policy current. Reinstatement is not allowed in all states, and is allowed only one time. Contact Agent Support Services at 1-888-606-6372 for information on availability and forms. Replacement We will permit external replacements as long as the replacement is in the best interest of the client and the appropriate state replacement forms are submitted with the application. Underwriting The underwriting is based on the answers to the health questions on the application, MIB, Inc. data, pharmacy data and a telephone interview. If conflicting information is received from MIB, Inc., the client may be asked to provide medical records to FLIC. In cases where the client feels the information upon which our underwriting decision was made was incorrect, we are willing to review the Proposed Insureds medical records. If you would like a case to be reviewed, please contact the Underwriting Department at underwriting@forethought.com or 1-888-606-6372 and we will be happy to assist you in determining the appropriate source from which we would require medical records. FLIC will not be responsible for charges incurred from obtaining medical records. These underwriting tools are used to help ensure prompt, accurate and consistent underwriting decisions. Our New Business/Underwriting associates are available to answer any questions regarding eligibility and we encourage all agents to utilize them whenever there may be an area of uncertainty. You may reach them by calling 1-888-606-6372. Hours: Monday Friday, 8:00am 5:00pm eastern

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Forethought FreedomSM Application Process

1. All sections of the Forethought FreedomSM application and all required documents in the New Business Packet (NBP) must be completed and signed before beginning the interview. 2. After pre-qualifying, based on a review of the Proposed Insureds medical condition and the medical questions, if the Proposed Insured qualifies to apply for a Forethought FreedomSM benefit, the writing agent should contact Apptical, Inc. (Apptical) at 1-800-737-6972 for the Point-of-Sale interview. Forethought has chosen Apptical as its interviewer. The telephone interview is used to confirm information from the application and, once authorization is obtained, the interviewer will run a MIB, Inc. and prescription database check. Telephone interviews are recorded and saved for future reference. 3. The interview must be completed at Point-of-Sale with the Proposed Insured and during Appticals hours of operation (8:30AM to midnight Monday through Friday, and 10:00AM to 8:00PM Saturday and Sunday, all Eastern). If the Proposed Insured, and/or Owner (if different), and/or Payor (if different) are not fluent in English, you may request Apptical provide an interpreter. 4. Writing agent will provide the interviewer with the phone number from which you are calling, your name, and your Forethought writing number. The interviewer will confirm that you have completed and signed the application and required documents in the NBP. 5. Writing agent will provide the interviewer with the following about the Proposed Insured: Gender, First Name, Middle Initial, and Last Name, Date of Birth, Social Security Number, Address, Phone Number, Birth State, and Birth Country. 6. The interviewer will provide you a Reference Number which should be written in the Reference Number field on the first page of the application. 7. The interviewer will ask you to put the Proposed Insured on the phone to complete the interview. The interviewer will provide you with the eligibility results for the Proposed Insured at the completion of interview. 8. Writing agent must submit the completed application and all required documents in the NBP, regardless of the decision, to Forethought and Forethought must receive this information within 14 days from the completion of the interview. 9. Important: Agents submitting an incomplete application/NBP will be notified by Forethought and asked to comply with the documentation requirements. Failure to comply in a timely manner may result in termination.

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Completing the Application

IMPORTANT NOTICE: Order and appearance of questions may vary on state-specific applications. Please print legibly 1. PROPOSED INSURED: Include Proposed Insureds First Name, Middle Initial, Last Name, Gender, Date of Birth, State of Birth, Social Security Number, Citizenship, Mailing Address, Residential Address (if different from Mailing Address), City, State, Zip Code, Occupation, Phone Number (home), Phone Number (work/cell), and E-mail Address.

2. OWNER (Complete only if the Owner and Proposed Insured are different). Owner must have an insurable interest: Include Owners First Name, Middle Initial, Last Name, Gender, Relationship to Proposed Insured, Citizenship, Social Security Number, Mailing Address, Residential Address (if different from Mailing Address), City, State, Zip Code, Phone Number (home), Phone Number (work/cell), and E-mail Address.

3. BENEFICIARY INFORMATION (Beneficiary proceeds will be split equally if no percentages are provided): Primary First Name, Middle Initial, Last Name, Age, Relationship to Proposed Insured, Social Security Number, Percentage. Contingent First Name, Middle Initial, Last Name, Age, Relationship to Proposed Insured, Social Security Number, and Percentage.

4. ELIGIBLE GRANDCHILDREN (to be covered by Grandchildrens Benefit) Include Grandchildrens Full Name and Date of Birth, or write in All Eligible, natural or legally adopted Grandchildren. Only natural or legally adopted grandchildren of the Proposed Owner are eligible for coverage.

5. LEvEL DEATH BENEFIT will be issued if: All health questions on the application are answered no by the proposed insured. Height and weight of proposed insured are within guidelines. MIB, Inc. records provide no information that may be inconsistent with health history provided by the proposed insured on the application. Prescription database check provides no information that is inconsistent with the health history provided by the proposed insured on the application. GRADED DEATH BENEFIT* will be issued if: Health questions 2 through 8 on the application are answered no by the proposed insured. Health questions 9 through 12 on the application contain at least one yes answer by the proposed insured. Height and weight of proposed insured are within guidelines. MIB, Inc. records provide no information that may be inconsistent with health history provided by the proposed insured on the application. Prescription database check provides no information that is inconsistent with the health history provided by the proposed insured on the application.
*not available in all states.
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Completing the Application

RETURN OF PREMIUM DEATH BENEFIT* will be issued if: Health questions 2 through 5 on the application are answered no by the proposed insured. Health questions 6 through 8 on the application contain at least one yes answer by the proposed insured. Height and weight of proposed insured are within guidelines. MIB, Inc. records provide no information that may be inconsistent with health history provided by the proposed insured on the application. Prescription database check provides no information that is inconsistent with the health history provided by the proposed insured on the application. 6. REPLACEMENT INFORMATION Both questions must be answered. If question 2 is answered yes, provide the name, face amount, and policy number of current coverage and submit the state specific replacement form.

7. INSURANCE PLAN INFORMATION: Payor Check Proposed Insured, Owner or Other. Plan of Insurance Check Level Death Benefit, Graded Death Benefit or Return of Premium. Make sure this selection matches the eligibility decision provided at the conclusion of the interview. Billing Mode Check Monthly EFT, Quarterly, Semi Annually or Annually. Insurance Amount List face amount of insurance applying for. Initial Premium Select a payment option and list the amount of the initial premium. Agent or agency checks, CODs, money orders and cashiers checks will not be accepted for premium payment. If EFT is selected, specify the desired Initial Premium draft date if the payor has a preferred date. This date must be within 30 days of the application signed date. Subsequent Premium Agent or agency checks, CODs, money orders and cashiers checks will not be accepted for premium payment. If EFT is selected, specify the desired draft date if the payor has a preferred date. The Subsequent Premium draft date is the date Forethought will draft the premium each month after the Initial Premium draft. The Subsequent Premium draft date may be different from the Initial Premium draft date but not more than 30 days beyond the Initial Premium draft date.

8. BANK DRAFT AUTHORIZATION If payment is drawn from a checking account, attach a voided check. If drawn from a savings account, provide the account number, routing number, bank name and phone number for verification. We may draft a second time for each NSF transaction. Forethought will not be responsible for NSF bank charges. Payor must sign and date this section if EFT is selected.

9. FRAUD WARNING/NOTICE Review with applicant based on state of issue. State required notices are outlined.
*not available in all states.

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Completing the Application

10. AGREEMENT Review with applicant.

11. AUTHORIZATION TO OBTAIN AND DISCLOSE INFORMATION Review with applicant. This authorizes Forethought Life Insurance Company to obtain protected health information.

12. SIGNATURES Proposed Insured, Owner, and Licensed Agent signatures, dates, city and state are all required.

13. AGENT DECLARATION AND SIGNATURES To be completed by the licensed agent meeting with the proposed applicant.

Health Insurance Portability and Accountability Act The Health Insurance Portability and Accountability Act of 1996 (HIPAA) combats waste, fraud and abuse in the insurance industry. HIPAA guidelines have specific disclosure requirements that prohibit unauthorized persons from viewing or receiving confidential medical information. As a result, strict HIPAA regulations prohibit us from divulging or discussing, with the agent, any medical information obtained during underwriting. MIB, Inc. MIB, Inc., is a membership association of life insurance companies. The primary mission of the MIB, Inc., is to provide an alert to its member insurance companies against omissions and fraud. This helps MIB, Inc., member companies to protect their interests and leads to cost savings that can be passed on to the insurance consumer. The authorization sections on the application authorize Forethought to access the MIB, Inc., and to obtain any necessary medical records on the Proposed Insured during the underwriting process. All necessary signatures must be on the application at the time of submission or the application will be returned. Please note that the MIB, Inc., is used as an alert. Actual underwriting decisions are not based on MIB, Inc., inquiry results alone.

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Forethought Contact Information

ONLINE SERvICES: Access product information, service details, commission and policy reports, and other valuable information by logging on to www.forethought.com. SUPPLY ORDERS: Order your supplies online at www.forethought.com. Email your order to final.expense@forethought.com for processing. Contact 1-888-606-6372 for assistance with placing the order.

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UNDERWRITING: To complete phone interviews of the health questions, contact Apptical at 1-800-737-6972. All other questions or status emails related to underwriting can be sent to underwriting@forethought.com

CLIENT SERvICE CENTER: Clients may access specific policy details through our customer service via phone or email. Phone: 1-888-606-6372 Email: final.expense@forethought.com

AGENT SUPPORT SERvICES: Call 1-888-606-6372 for assistance with product sales, commissions, and agent contracting.

SUBMITTING A NEW BUSINESS APPLICATION: Fax to 1-877-432-1646 Email to final.expense@forethought.com

FORETHOUGHT MAILING ADDRESSES: Forethought Freedom Attn: New Business P.O. Box 148 Batesville, IN 47006 Overnight Delivery Forethought Freedom One Forethought Center Batesville, IN 47006

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Forethought FreedomSM is funded through the purchase of whole life insurance from Forethought Life Insurance Company, Indianapolis, Indiana. Depending upon insurance plan offered death benefit may vary during the first two policy years. A representative who may also be an agent of Forethought Life Insurance Company can answer any questions you may have. Forethought Life Insurance Company (Forethought), provides innovative insurance and financial solutions for families managing retirement and end-of-life needs. Headquartered in Indianapolis, Indiana, Forethought provides life insurance and annuities. Forethought has been consistently recognized by A.M. Best for financial strength. As of June 30, 2012, Forethought has assets owned and under management in excess of $5.9 billion, approximately $1.7 billion in annual revenue, and more than $5.3 billion of life insurance and annuity reserves. With over 25 years of proven integrity, Forethought has served more than a million customers who rely on us to protect the financial future of their families.

Forethought Life Insurance Company

Administrative Office One Forethought Center Batesville, IN 47006 Phone: 1-888-606-6372 Email: final.expense@forethought.com

www.forethought.com

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