Life · Chapter 9 · Charges & Living Benefits
Guaranteed Minimum Income Benefit (GMIB)
Definition
Guarantees a minimum income at annuitization regardless of market performance — payout based on the GREATER of the actual account value or the GMIB benefit base (net premiums compounded at a fixed rate). The contract MUST be annuitized to trigger it.
Exam tip
GMIB requires annuitization; GMAB does not. That's the tested difference.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms