DEFINITION of '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 minimum value's worth of payments.
BREAKING DOWN '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.