Immediate Annuity

The standalone living benefit (SALB) is a living benefit feature that does not require the purchase of a variable annuity. A SALB is basically the same thing as the guaranteed lifetime withdrawal benefit (GLWB) that accompanies many variable annuities. What makes the standalone living benefit different is that the GLWB has been “stripped away” and can exist independently of the variable annuity. This allows the owner of the standalone living benefit to receive the guaranteed income and longevity risk protection of the GLWB without having to purchase a variable annuity. Standalone living benefits are intended to accompany a pool of money or assets that are being managed. The owner of a professionally managed private investment account who purchases a SALB would have all the features and protections of the GLWB.