Defined terms for the annuity market and lifetime income landscape.
A group annuity contract is an annuity contract issued to an employer, plan sponsor, or other group holder that provides annuity benefits to underlying individual participants under the terms of the group arrangement.
A guaranteed lifetime withdrawal benefit (GLWB) is a rider attached to a deferred annuity — most commonly a fixed indexed annuity — that guarantees the contract owner the right to withdraw a specified percentage of a defined benefit base each year for life, in exchange for a rider charge.
A guaranteed living benefit (GLB) is an umbrella category of riders on deferred annuities that provide contractual guarantees to the contract owner during their lifetime — guaranteed lifetime withdrawals, guaranteed lifetime income, guaranteed minimum accumulation — distinct from death benefits.
A guaranteed minimum accumulation benefit is a living benefit rider on a variable annuity that guarantees the account value will equal at least a specified minimum — most commonly the original premium — at the end of a defined waiting period, regardless of investment performance.
A guaranteed minimum death benefit (GMDB) is a rider on a deferred annuity that guarantees the beneficiary will receive at least a specified minimum amount upon the contract owner's death regardless of account value, funded through the mortality and expense charge or a separate rider charge.
