YOU ASK:

What is the definition of Guaranteed Living Benefits?

WE ANSWER:

The Guaranteed Living Benefits are benefits usually provided by variable annuities. In some cases, it provides the annuitant with a guaranteed amount of annuity payments. This amount is the minimum level that the annuitant stands to gain whether the investments of the annuity does well or not.

If you are thinking of getting a variable annuity and would like some level of protection with regards to the principal, the future annuity incomes and the access to the funds (in case you want to make a withdrawal), taking the option of some form of guaranteed living benefit will help put your mind at ease.

Other forms of the guaranteed living benefit include a lifetime income benefit (where the annuity will provide a guaranteed income during your lifetime), a guaranteed minimum income benefit (where the annuity guarantees to pay a specified minimum amount during the annuity payments) or a guaranteed lifetime withdrawal benefit (where a certain amount can be withdrawn during your life). Other guaranteed living benefits include a guaranteed minimum accumulation benefit and a guaranteed minimum withdrawal benefit.

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