Guaranteed Minimum Income Benefit - GMIB

What Does Guaranteed Minimum Income Benefit - GMIB Mean?
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 minimum value's worth of payments.

Investopedia explains Guaranteed Minimum Income Benefit - GMIB
Receiving a guaranteed minimum income benefit ensures that an annuitant will receive a payment regardless of market conditions. This minimum payment amount is predetermined by assessing the future value of the initial investment. This option is only beneficial to annuitants who plan to annuitize their annuity.

Related Terms

Annuitant
Death Benefit
Guaranteed Earning Increase Death Benefit
Guaranteed Investment Fund - GIF
Guaranteed Lifetime Withdrawal Benefit - GLWB
Guaranteed Minimum Accumulation Benefit - GMAB
Guaranteed Minimum Withdrawal Benefit - GMWB
More Related Terms

Related Links

The Cost Of Variable Annuity Guarantees - These products tempt investors with some impressive benefits - but they come at a price.
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.
Exploring Types Of Fixed Annuities - Understand what you're getting when buying these. Here we look at differences, advantages and disadvantages.
Getting the Whole Story on Variable Annuities - Variable annuities are another way to save money tax-deferred - but don't jump in blindly!

Rate this Term: Your Rating: Overall Rating: Vote Now!