Guaranteed Minimum Accumulation Benefit - GMAB


DEFINITION of 'Guaranteed Minimum Accumulation Benefit - GMAB'

A rider on a variable annuity, which guarantees the minimum amount received by the annuitant after the accumulation period, or a set period of time, is either the amount invested or is locked in gain. This protects the value of the annuity and the annuitant from market fluctuations.

BREAKING DOWN 'Guaranteed Minimum Accumulation Benefit - GMAB'

This benefit is optional to an annuity for an added cost, which varies by each firm. The GMAB will be used only if the market value of the annuity is below the minimum guaranteed value. In some cases, the cumulative costs of the benefit are returned to the annuity if the annuity value is higher than the minimum, removing the need to use the rider.

  1. Annuity

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

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

    Anybody who gains an advantage and/or profits from something. ...
  4. Guaranteed Lifetime Withdrawal ...

    A rider on a variable annuity that allows minimum withdrawals ...
  5. Variable Annuity

    An insurance contract in which, at the end of the accumulation ...
  6. Annuitant

    1. A person who receives the benefits of an annuity or pension. ...
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    Variable annuities are often found in government or nonprofit employer retirement plans such as 403(b) or 457(b) plans. With ... Read Full Answer >>
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