Guaranteed Earning Increase Death Benefit

AAA

DEFINITION of 'Guaranteed Earning Increase Death Benefit'

A type of option that annuitants can purchase for their retirement annuities. This option would guarantee the beneficiary that the plan would receive an additional pre-determined amount of money that would be above and beyond the death benefit in the event that the annuitant dies before the annuity's maturity.

INVESTOPEDIA EXPLAINS 'Guaranteed Earning Increase Death Benefit'

For example, Jack had purchased a guaranteed earning increase death benefit option of 5% on his $150,000 retirement annuity. If Jack passes away before he can start collecting his annuity, his beneficiary, Jill, will be able to collect a total of $157,000 ($150,000 + 5% of $150,000).

RELATED TERMS
  1. Annuity

    A financial product sold by financial institutions that is designed ...
  2. Beneficiary

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

    1. A person who receives the benefits of an annuity or pension. ...
  4. Guaranteed Minimum Accumulation ...

    A rider on a variable annuity, which guarantees the minimum amount ...
  5. Guaranteed Lifetime Withdrawal ...

    A rider on a variable annuity that allows minimum withdrawals ...
  6. Guaranteed Minimum Income Benefit ...

    A type of option that annuitants can purchase for their retirement ...
Related Articles
  1. Retirement

    Establishing A Revocable Living Trust

  2. Options & Futures

    An Estate Planning Must: Update Your ...

  3. Retirement

    The Cost Of Variable Annuity Guarantees

  4. Retirement

    Can the non-spouse beneficiary of an ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center