An income rider (also called a guaranteed lifetime withdrawal benefit or GLWB) is an optional feature added to a deferred annuity that guarantees a minimum income stream for life. The income rider grows at a guaranteed rate during the accumulation phase and provides a guaranteed withdrawal rate during the distribution phase.
Key Points
- Income rider: guarantees minimum income stream for life
- Also called guaranteed lifetime withdrawal benefit (GLWB)
- Grows at guaranteed rate during accumulation phase
- Provides guaranteed withdrawal rate during distribution phase
- An independent agent can help you compare income rider options