Guaranteed Minimum Accumulation Benefit - GMAB

AAA

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 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 TERMS
  1. Guaranteed Investment Fund - GIF

    A type of investment product offered by insurance companies that ...
  2. Annuity

    A financial product sold by financial institutions that is designed ...
  3. Variable Annuity

    An insurance contract in which, at the end of the accumulation ...
  4. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  5. Annuitant

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

    A provision of an insurance policy that is purchased separately ...
Related Articles
  1. Retirement

    Variable Annuities With Living Benefits: Worth The Fees?

    Added features can make a variable annuity suitable for certain investors. Find out if it could work for you.
  2. Retirement

    The Cost Of Variable Annuity Guarantees

    These products tempt investors with some impressive benefits - but they come at a price.
  3. Insurance

    Who are the best-rated life insurance companies in the US?

    Learn about what makes an insurance company the best. Read about the best life insurance companies in the U.S. in 2014, following ratings by Weis.
  4. The Treasury and the IRS have issued new guidance on pairing annuities with target date funds.
    Investing Basics

    Guidance On Pairing Annuities, Target Date Funds

    The Treasury and the IRS have issued new guidance on pairing annuities with target date funds. Here's a look.
  5. How can investors close to retirement protect the purchasing power of their savings? Here are some tips for near-retirees and their financial advisors.
    Investing News

    Tips To Beat Inflation For Near-Retireees

    How can investors close to retirement protect the purchasing power of their savings? Here are some tips for near-retirees and their financial advisors.
  6. Retirement

    Are annuities qualified or nonqualified retirement instruments?

    Learn the basics of annuity investments and the tax-deferral they offer, and discover the differences between qualified and non-qualified annuities.
  7. Retirement

    Where else can I save for retirement after I max out my Roth IRA?

    Max out your Roth IRA first, then look to other retirement accounts like 401(k) plans, IRAs and annuities to sock away as much cash as you can for retirement.
  8. Retirement

    What are the 403(b) contribution limits?

    Determine whether 403(b) contributions meet federal guidelines. Contribution limits to this retirement plan are determined by age and years of service.
  9. Mutual Funds & ETFs

    What is the difference between a 401(k) plan and a 403(b) plan?

    Administered by for-profit, private companies, 401(k) plans are more common than the nonprofit or government-sponsored 403(b) plans.
  10. Savings

    Are Equity-Indexed Annuities Right For You?

    Equity-indexed annuities can be confusing to understand, but for conservative investors, they can be valuable savings plans.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center