Glossary

Guarantee charge is the cost-structure value that applies to lifetime income arrangements where the insurer's cost is charged as a separate disclosed fee for an embedded guarantee, layered on top of the underlying contract structure. Why it matters Variable annuities with guaranteed living benefits — guaranteed lifetime withdrawal benefits (GLWB), guaranteed minimum withdrawal benefits (GMWB), guaranteed minimum income benefits (GMIB) — package an investment account inside an insu

A guaranteed lifetime withdrawal benefit (GLWB) is a rider attached to a deferred annuity contract — 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, regardless of the contract's account value, in exchange for a separately disclosed annual rider charge. Why it matters The GLWB is the lifetime-income rider most commonly attached to fixed indexed annuities and is the

A guaranteed living benefit (GLB) is an umbrella category of riders attached to deferred annuity contracts that provide contractual guarantees to the contract owner during their lifetime — including guaranteed lifetime withdrawals, guaranteed lifetime income, and guaranteed minimum accumulation values — distinguished as a category from death benefits, which provide guarantees to beneficiaries after the contract owner's death. Why it matters "Guaranteed living benefit" is the categ

A guaranteed minimum accumulation benefit (GMAB) is a rider attached to a deferred annuity contract that guarantees the contract's account value will reach a specified minimum amount at the end of a defined accumulation period, regardless of investment performance, in exchange for a separately disclosed annual rider charge. Why it matters The GMAB addresses a different concern than the lifetime-income riders — it protects the contract's accumulation against investment loss over a

A guaranteed minimum death benefit (GMDB) is a rider attached to a deferred annuity contract that guarantees the beneficiary will receive at least a specified minimum amount upon the death of the contract owner, regardless of the contract's account value at that time, typically funded through the contract's mortality and expense charge or through a separately disclosed rider charge. Why it matters The GMDB is the most common rider in the US deferred annuity market because it is bu