Annuity Acronyms Explained (GLWB, GMAB, GMDB, and GMIB)
Annuity Acronyms! How can you understand them all? GLWB, GMAB, GMDB, GMIB – what do they all stand for? This video will teach you exactly what each annuity acronym means and how it affects you.
To begin, usually an acronym on an annuity refers to some type of annuity rider. And usually (like 99% of the time) a rider costs money. Meaning there is an annual fee to have the rider. So if you aren’t 100% sure you need the rider, don’t add it to the annuity. Why pay for something you don’t need?
On the other hand, any time you see an “annuity benefit”, it is usually a benefit built into the annuity which will have no extra fee or charge. To summarize:
- Annuity rider = charges you a fee to own
- Annuity benefit = free
In this video, Rob explains what prompted insurance companies to incorporate these riders into fixed annuities, index annuities and variable annuities. He walks through what each one stands for and how it works.
Note: To watch the educational video, just click on the video picture below or you can click here to watch it in YouTube.
To learn more from this annuity professional, click here (Rob Brinkman).
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