CSG Actuarial has learned, as many already know, that Forethought Life Insurance Company will be exiting the market at the end of this year. This A-rated company will now focus more on its Annuity and Life Insurance products, while maintaining its current Medicare Supplement block of seniors. The discontinuation of the business will become effective on December 15, 2014. Below is the timeline of key dates that agents contracted with Forethought should know.
November 18,2014: All issued business will no longer receive commission advancements
December 15, 2014: Deadline of application submission
December 31, 2014: Last day for issuance of new business and termination of agent numbers (Cases not resolved will be closed). This is also the last day for plan conversions.
Additionally, policyholders will be allowed to reinstate a lapsed policy within 60 days from the last paid-to date.
With as many additions to the market this year including IAC, Standard Life and Casualty, and Companion Life, the market is still full of many viable options. Forethought is a good reminder of the volatile nature of the Medicare Supplement market.