Defined terms for the annuity market and lifetime income landscape.
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.
A guaranteed minimum withdrawal benefit is an income rider on a variable annuity or fixed indexed annuity that guarantees the right to withdraw a specified percentage of a separately-tracked benefit base each year for life, even if the underlying account value falls to zero.
