Which feature guarantees the annuitant will not outlive retirement income?

• A. Guaranteed Lifetime Withdrawal Benefit
• B. Death Benefit Rider
• C. Cash Surrender Value
• D. Inflation Rider

Answer: (A)

longevity risk is the concern about outliving your savings. The feature that directly addresses this is a Guaranteed Lifetime Withdrawal Benefit. This rider promises a minimum withdrawal amount for life, regardless of how the account value performs, as long as you stay within the rider’s rules. That guarantees ongoing income for the annuitant, so you won’t run out of retirement income even if markets decline.

The other options don’t provide this lifetime income guarantee. A death benefit rider pays out upon the annuitant’s death, not to the living; cash surrender value is what you could get by ending the contract, not a guaranteed lifetime stream; and an inflation rider adjusts payments for rising prices but still doesn’t ensure payments continue for the annuitant’s entire life.