Guaranteed Minimum Accumulation Benefit

A guaranteed minimum accumulation benefit (GMAB) is an optional “living benefit” guarantee that can be embedded into a variable annuity product. The GMAB guarantees a minimum contract value—regardless of investment performance—after a set period of time. The minimum contract value is typically equal to or greater than the total premium. For example, Catherine invests $150,000 into a variable annuity and selects a GMAB. The capital markets have performed terribly and as a result the variable annuity contract value is only $75,000 at the end of 10 years. Catherine is in a good position though because the variable annuity contract value is still $150,000 at the end of 10 years.

Annuity Fees and Expenses

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Annuity Digest Buying Guide: Annuity Fees and Expenses

Expenses should be a top priority for any financial services consumer.  Many people have been conditioned to be aware of expenses when it comes to investment products.  Indexed-bases investment management companies such as


What are "living benefit" options associated with annuities and how do they work?

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How can an annuity protect me from a volatile market?

Annuities can be very effective in providing protection against market

High expenses or fees are one criticism I have heard regarding annuities. Can you explain the fee structure around annuities?

Annuities are products that combine insurance and, in the case of variable annuities,