Guaranteed Living Benefits (GLB) are particularly attractive to which group?

Guaranteed Living Benefits (GLB) are particularly attractive to which group?

• A. Young investors seeking quick gains
• B. Investors looking for high risk
• C. Older and conservative consumers
• D. People seeking only short-term liquidity

Answer: (C)

Guaranteed Living Benefits give a safety net inside a variable annuity, providing a guaranteed level of income or withdrawals for life even if the market value falls. This combination of protection and the potential for growth fits retirement planning well, especially for those who are older and want predictable, steady income and to manage longevity risk. In practice, the guarantees reduce worry about market downturns while still offering exposure to market upside, which is exactly what a conservative, retirement-focused investor is looking for. By contrast, young investors chasing rapid gains, those who want high risk, or people who need only short-term liquidity typically don’t value locked-in guarantees with fees and long horizons, so they wouldn’t be the primary audience for guaranteed living benefits.

Guaranteed Living Benefits give a safety net inside a variable annuity, providing a guaranteed level of income or withdrawals for life even if the market value falls. This combination of protection and the potential for growth fits retirement planning well, especially for those who are older and want predictable, steady income and to manage longevity risk. In practice, the guarantees reduce worry about market downturns while still offering exposure to market upside, which is exactly what a conservative, retirement-focused investor is looking for. By contrast, young investors chasing rapid gains, those who want high risk, or people who need only short-term liquidity typically don’t value locked-in guarantees with fees and long horizons, so they wouldn’t be the primary audience for guaranteed living benefits.