Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A guaranteed minimum withdrawal benefit (GMWB) rider on a life or annuity product guarantees that the owner:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A guaranteed minimum withdrawal benefit rider guarantees that the owner can withdraw a minimum annual amount over a stated period or for life, even if the underlying account value is depleted by withdrawals or poor performance. It protects the income stream rather than the account balance. This is one of the guaranteed minimum benefit riders identified in objective LIFE-III.1i.
Why the other options are wrong
- B) The rider guarantees withdrawals, not a death benefit; a guaranteed minimum death benefit is a different rider.
- C) Surrender rights and surrender value are governed by the base contract, not by a withdrawal-benefit rider.
- D) The rider does not eliminate future premiums; premium obligations belong to the base policy.
Memory hook
GMWB = the check keeps coming even when the account hits zero.