Annuity Living Benefits

Variable annuities are unique in offering tax deferral, professionally managed investments and living benefits all in one product. Living benefits, optional and available for an additional fee, are guarantees to protect your accumulated assets during your lifetime and provide a regular stream of income during retirement. These guarantees are backed by the claims-paying ability of the issuing insurance company.

It's possible to choose among a variety of riders that provide guarantees to protect your principal, your withdrawal amounts during the payout phase or the income base that determines the size of your lifetime income stream.

Guaranteed Minimum Withdrawal (GMWB)

This benefit guarantees the return of principal through withdrawals of a fixed percentage of principal during a fixed period of time until the amount of the original investment has been withdrawn. Some benefits also guarantee annual withdrawals for life, or for the life of the owner and the owner's spouse, in addition to guaranteeing the principal.

Guaranteed Minimum Income Benefit (GMIB)

At purchase, the insurance company guarantees income through a fixed annual compounding rate. After a vesting period, if the contract is annuitized, the guaranteed income base is used to calculate minimum monthly payments, regardless of market performance. If contract value grows, the income stream may be higher—but never lower—than the guaranteed amount.

Guaranteed Minimum Accumulation (GMAB)

This benefit guarantees return of your initial investment, regardless of actual market performance, provided you hold the investment for ten years and make no withdrawals during that time.