A Guaranteed Lifetime Withdrawal Benefit provides which protection?

• A. Guaranteed lifetime payments
• B. Higher death benefit
• C. Tax-deferred growth
• D. No surrender charges

Answer: (A)

A Guaranteed Lifetime Withdrawal Benefit is a rider that guarantees you a stream of withdrawals for your lifetime, even if the underlying account value drops to zero. This protection means you won’t outlive your retirement income—the payments continue for as long as you live, regardless of investment performance. The amount you can withdraw is usually tied to a benefit base and a specified withdrawal rate, and while the account value can go up or down with market performance, the guarantee ensures a minimum income stream for life. Other features like a higher death benefit, tax-deferred growth, or surrender charges may exist in the contract, but the distinctive protection of this riders is the guaranteed lifetime payments.