Guaranteed Minimum Income Benefit

A guaranteed minimum income benefit (GMIB) is an optional “living benefit” guarantee that can be embedded into a variable annuity product. The GMIB provides a floor or a guaranteed minimum annuity payment regardless of investment performance. However, the annuity owner also has the option to lock-in a higher payout when annuitizing if investments have performed well and the contract value exceeds what it would be with the minimum income benefit. For example, Catherine invests $150,000 into a variable annuity and selects a GMIB that provides 4% annually. 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 she has $222,036 to annuitize as a result of the GMIB.

What is Driving the Rush for the Variable Annuity Exit?


Annuity Fees and Expenses

META Tag Title: 
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


AXA Equitable Releases Innovative Variable Annuity

AXA Equitable Life Insurance Company has been an innovator in the variable annuity industry. The company was a pioneer in the area of guaranteed living benefits with the launch of the first guaranteed minimum income benefit. AXA has recently launched a new variable annuity product named "Retirement Cornerstone." Retirement Cornerstone features a "dual account platform" that provides the potential for long-term asset accumulation and growth as well as downside protection through a guaranteed...

A Changing Variable Annuity Landscape -- What to Watch for in the Next Few Years

This is the second part of an interview with...

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

Key Phrases: