What feature is NOT typically associated with Guaranteed Lifetime Withdrawal Benefits (GLWB)?

The feature that is not typically associated with Guaranteed Lifetime Withdrawal Benefits (GLWB) is the limitation of total withdrawals to contract value. GLWBs are designed to provide a guaranteed stream of income for the lifetime of the policyholder, regardless of the performance of the underlying investments.

This means that even if the account value declines due to poor market performance or excessive withdrawals, the individual is still entitled to receive withdrawals for life, as set forth in the terms of the GLWB. This feature ensures a level of financial security for retirees who may be concerned about outliving their assets.

While GLWBs do allow policyholders to access their investment in a variety of asset classes, including equities, the critical aspect of these benefits is that they provide a stable income stream irrespective of the market fluctuations. Therefore, stating that total withdrawals are limited to the contract value contradicts the purpose of GLWB, which is to guarantee income independently of the investment performance or the total account balance.