Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
A guaranteed minimum withdrawal benefit (GMWB) rider typically promises that:
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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 the owner a minimum annual withdrawal amount, often a fixed percentage of the benefit base, frequently the original premium, for life or for a specified period, regardless of how the underlying account performs. If the account value falls to zero, the insurer continues making the guaranteed withdrawals. This rider, common on variable annuities and some life products, transfers market risk to the insurer and gives the owner income certainty.
Why the other options are wrong
- B) A highest-anniversary-value feature is a death-benefit enhancement, not a GMWB.
- C) A GMWB guarantees withdrawals, not a full return of premiums at age 65.
- D) Surrender charges generally still apply to amounts withdrawn beyond the free-withdrawal allowance.
Memory hook
GMWB = a lifetime minimum paycheck from your account, even if the account hits zero.