Which rider guarantees a percentage of withdrawal for the life of the annuitant?

The correct answer is the Guaranteed Minimum Withdrawal Benefit (GMWB), as it directly guarantees a percentage of the annuitant’s investment can be withdrawn over their lifetime, regardless of market performance or the account value of the annuity. This rider ensures that the annuitant can receive a specified percentage of their initial investment annually, providing a safety net and income stream, even if the remaining balance of the annuity dwindles due to withdrawals or negative market conditions.

This rider is particularly appealing because it balances the potential for growth with the assurance of guaranteed withdrawals, making it attractive for retirees or those seeking predictable income. It aligns well with the objectives of individuals looking to secure their financial future while still participating in market growth opportunities.

In contrast, the other options serve different purposes: The Guaranteed Minimum Accumulation Benefit (GMAB) focuses on guaranteeing a certain minimum value at a specified point in time, making it unsuitable for ongoing withdrawals. The Guaranteed Lifetime Withdrawal Benefit (GLWB) also provides guaranteed withdrawals for life, but usually with varying conditions and often linked with different withdrawal percentages. The Guaranteed Minimum Income Benefit (GMIB) is centered on guaranteeing a minimum level of income rather than a percentage of withdrawals. Each of these riders caters to specific financial planning