Guaranteed Lifetime Withdrawal Benefit - GLWB


DEFINITION of 'Guaranteed Lifetime Withdrawal Benefit - GLWB'

A rider on a variable annuity that allows minimum withdrawals from the invested amount without having to annuitize the investment. The amount that can be withdrawn is based on a percentage of the total amount invested in the annuity.

BREAKING DOWN 'Guaranteed Lifetime Withdrawal Benefit - GLWB'

In most cases, if you were to access the funds in the annuity you would have to either annuitize it, which creates regular distributions, or face fee penalties. The GLWB allows access to the invested capital, regardless of the performance of the investment, and continues to maintain and invest in the annuity. The percent of the allowable withdrawal will depend on the contract, but can be increased in most cases if the date at which the annuity payments begin is delayed.

  1. Annuity

    A financial product that pays out a fixed stream of payments ...
  2. Annuitization Method

    A type of annuity distribution structure that gives the annuitant ...
  3. Rider

    A provision of an insurance policy that is purchased separately ...
  4. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  5. Guaranteed Earning Increase Death ...

    A type of option that annuitants can purchase for their retirement ...
  6. Annuitant

    1. A person who receives the benefits of an annuity or pension. ...
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