The Skinny on GLWBs in Variable Annuities

A guaranteed lifetime withdrawal benefit (GLWB) rider on variable annuities guarantees a withdrawal of a minimum amount during the lifetime of the policyholder—the subaccounts' performance notwithstanding—and the policyholder does not have to annuitize his or her contract.

The guarantee is a specific percentage of the investment, and it increases the longer withdrawals are delayed. For example, a carrier might pay 5% at age 55, but if the policyholder reaches 70 before taking income, the carrier may raise that set percentage to 6%. It would increase at older ages.

The Skinny on GLWBs in Variable Annuities
Source: Insurance News Net