The variable annuity rider that guarantees a minimum annual withdrawal without surrender charges is known as:

The variable annuity rider that guarantees a minimum annual withdrawal without surrender charges is known as:

• A. GMIB
• B. GMAV
• C. GMWB
• D. GLB

Answer: (C)

A rider that provides a guaranteed withdrawal regardless of market performance is designed to protect cash flow from a variable annuity. The one that guarantees a minimum annual withdrawal for life without surrender charges is the Guaranteed Minimum Withdrawal Benefit. It sets a fixed withdrawal amount you can take each year, for as long as you live, and the guarantee stands even if the account value falls. Withdrawals are typically based on a defined base and a percentage, so you can rely on a predictable income stream while still benefiting if markets perform well. This differs from other riders: a Guaranteed Minimum Income Benefit focuses on turning the account into a lifetime income stream usually through annuitization; a Guaranteed Minimum Accumulation Benefit guarantees a minimum account value at a future date; and a Guaranteed Lifetime Benefit covers a living or death benefit with a lifetime guarantee, but not specifically the ongoing withdrawal amounts you can take each year. The withdrawal-guarantee rider is specifically about ensuring a steady, withdrawable amount each year without surrender charges on those withdrawals.

A rider that provides a guaranteed withdrawal regardless of market performance is designed to protect cash flow from a variable annuity. The one that guarantees a minimum annual withdrawal for life without surrender charges is the Guaranteed Minimum Withdrawal Benefit. It sets a fixed withdrawal amount you can take each year, for as long as you live, and the guarantee stands even if the account value falls. Withdrawals are typically based on a defined base and a percentage, so you can rely on a predictable income stream while still benefiting if markets perform well.

This differs from other riders: a Guaranteed Minimum Income Benefit focuses on turning the account into a lifetime income stream usually through annuitization; a Guaranteed Minimum Accumulation Benefit guarantees a minimum account value at a future date; and a Guaranteed Lifetime Benefit covers a living or death benefit with a lifetime guarantee, but not specifically the ongoing withdrawal amounts you can take each year. The withdrawal-guarantee rider is specifically about ensuring a steady, withdrawable amount each year without surrender charges on those withdrawals.