Guaranteed Living Benefit
Guaranteed living benefits (GLB) or living benefits are optional guarantees that can be embedded into variable annuity products. In the past, variable annuities could come with a guaranteed minimum death benefit (GMDB) which paid a minimum benefit upon death of the annuitant. Over the past decade, however, product development and innovation have flourished, and insurers offer income, accumulation, or withdrawal guarantees that can provide a significant measure of protection against market risk while the annuitant is alive. Some of these “living benefits” include: guaranteed minimum income benefit (GMIB); guaranteed minimum withdrawal benefit (GMWB); guaranteed lifetime withdrawal benefit (GLWB), and; guaranteed minimum accumulation benefit (GMAB). Guaranteed living benefits have proven to be incredibly popular. More than 95% of variable annuity sales in 2007 contained some form of living benefit. Guaranteed lifetime withdrawal benefits (GLWB) have proven to be one of the most popular guarantees.
Annuity Product Persistency Levels are Increasing
- Read more about Annuity Product Persistency Levels are Increasing
- Log in to post comments
Glenn Daily on Buying Annuities and Why it Might Make Sense to Wait
Glenn Daily is one of the top financial advisors in the country.
Specializing in life insurance and annuities, Glenn is widely...
How is the value of an annuity calculated once you have started to receive payments in order to determine the IRS required minimum distributions?
Great question.
We are not tax / financial advisors, but will try to provide some information that points you in the right direction and enables you to present good questions to your advisors.
The relevant section of the IRS code appears to be: Treas. Reg. section 1.401(a)(9)-6, Q&A12
Note that there appear to have been some relevant modifications to the IRS code in 2006.
Walter Updegrave Annuity Explanation
Submitted by tom on
A pretty good explanatory piece on annuities from well respected financial journalist Walter Updegrave.
- Read more about Walter Updegrave Annuity Explanation
- Log in to post comments