What Is Guaranteed Minimum Benefit?

​Sometime in the future, you could be receiving a steady-flow income called an annuity. Two things make up an annuity, namely, principal and returns. Now, what if there were sudden fluctuations in the market? How will you manage your account? There’s the guaranteed minimum benefit that will help you. So, how does it work exactly? Keep reading to learn. 

GMB Compared To Other Guaranteed Benefits
A guaranteed minimum income benefit (GMIB) will provide income for retirees in terms of income. Similarly, it will protect the value in case of market instability. For example, if you choose to annuitize your contract, the payment you’ll receive will be based on the fund set.

On the other hand, the guaranteed minimum benefit withdrawal provides a retirement fund. An eligible individual can receive a percentage of the fund and withdraw annually. The percentage can range from 5-10% but may vary depending on age restrictions.

What is a Stand-Alone Benefit?
There’s also a stand-alone benefit similar to the guaranteed minimum benefit, but it does not require an annuity. If investors want to access the funds, they may do even if the market isn’t doing well. Notably, it will not charge fees and restrictions.

The Bottomline
Securing your annuity using a guaranteed minimum can be advantageous because you can protect your investment if there’s market instability. Not only that, but the pros include minimum withdrawal and income benefits.

At the Medicare Supplement Store, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (732) 252-8828. Get your free quote today by CLICKING HERE. Coverage discussed in this article is not guaranteed. Please contact our agency to go over your existing coverage. We are happy to help you make sure your needs are being met!