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.
BREAKING DOWN '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).