Annuity glossary

GMIB (Guaranteed Minimum Income Benefit)

A rider promising that when you annuitize at a stated future date, your income will be calculated on at least a guaranteed minimum amount, regardless of how the annuity's underlying account performed. Unlike a lifetime withdrawal benefit, using a GMIB typically requires converting the contract into annuity payments and giving up the lump sum. The contract explains the payment calculation, timing, charges, limits, and survivor choices that apply. Any guarantee is backed by the claims-paying ability of the issuing insurer.

Any guarantee is backed by the claims-paying ability of the issuing insurer.