Standalone Living Benefits Provide Guaranteed Income without Annuities
The...
Living benefits or guaranteed living benefits (GLB) 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). 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.
The...
Concerned about the possibility of another market swoon?
Take a look at some of the living benefits features that can be attached to most...
The asset management industry has struggled to provide older investors and retirees with investment products that provide returns with little or no risk of losing principal.
In other words, the industry has not had any success in developing investment products that provide return without any risk.
A recent Wall Street Journal...
This is the second part of an interview with...