Search Investopedia

Guaranteed Minimum Accumulation Benefit - GMAB

Filed Under » ,
Dictionary Says

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.
Investopedia Says

Investopedia explains '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.

Related Definitions

  •

    Annuity

    A financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the ...
    Read More »

  • Annuitant

    1. A person who receives the benefits of an annuity or pension.2. The person upon whom a life-insurance contract is based.
    Read More »

  • Beneficiary

    A person or entity named in a will or a financial contract as the inheritor of property when the property owner dies.
    Read More »

    • 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 The amount that can be withdrawn is based on a ...
      Read More »

    • Rider

      A provision of an insurance policy that is purchased separately from the basic policy and that provides additional benefits at additional cost. Standard policies usually leave little ...
      Read More »

    • Variable Annuity

      An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the ...
      Read More »

    • Guaranteed Minimum Withdrawal Benefit - GMWB

      A type of option that annuitants can purchase for their retirement annuities. This specific option gives annuitants the ability to protect their retirement investments against downside ...
      Read More »

    • Guaranteed Minimum Income Benefit - GMIB

      A type of option that annuitants can purchase for their retirement annuities. When the annuity has been annuitized, this specific option guarantees that the annuitant will receive a ...
      Read More »

    • Guaranteed Investment Fund - GIF

      A type of investment product offered by insurance companies that allows its client to invest in an equity, bond and/or index fund while providing a promise that some predefined minimum ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions