Which of the following annuity riders ensures investors will receive a set amount of income annually, regardless of market performance?

• A. Enhanced Death Benefit rider
• B. Guaranteed Minimum Income Benefit (GMIB) rider
• C. Return of Premium rider
• D. Accumulation Benefit rider

Answer: (B)

Verified step by step guidance

1. Understand the concept of an annuity rider: An annuity rider is an optional feature added to an annuity contract to provide additional benefits or guarantees. These riders often address specific concerns such as income stability, death benefits, or premium returns.
2. Analyze the purpose of the Guaranteed Minimum Income Benefit (GMIB) rider: This rider ensures that the investor will receive a predetermined minimum amount of income annually, regardless of the performance of the underlying investments or market conditions. It provides income stability and protection against market volatility.
3. Compare the GMIB rider with other options: The Enhanced Death Benefit rider focuses on providing a higher payout to beneficiaries upon the annuitant's death. The Return of Premium rider ensures that the investor will receive at least the total premiums paid if the annuity is surrendered or the annuitant passes away. The Accumulation Benefit rider is designed to enhance the growth of the annuity's value during the accumulation phase.
4. Identify the key feature of the GMIB rider: The GMIB rider specifically addresses the need for guaranteed income, making it distinct from other riders that focus on death benefits, premium returns, or accumulation growth.
5. Conclude that the GMIB rider is the correct answer: Based on the analysis, the Guaranteed Minimum Income Benefit (GMIB) rider is the annuity rider that ensures investors will receive a set amount of income annually, regardless of market performance.