Guaranteed Minimum Accumulation Benefit (GMAB) is an important and useful option available within annuities that helps to protect the account owner against unexpected and unwelcome market fluctuations. For policyholders, this means that, no matter what the actual value is in their annuity, they are guaranteed to received the amount promised in the policy by the insurance company.

GMAB is an annuity rider option that guarantees to pay a minimum value to the holder after a certain holding period. This period is often referred to as the accumulation period or the established period, which lasts until the policyholder can cash out their annuity. The GMAB rider ensures that the account values will not dip below a certain level, meaning the account owner is not at risk of a loss. If the policy’s actual value is higher than the minimum benefit, then the higher amount will be paid out to the account owner upon completion of the holding period.

Other offerings by insurance companies come with similar guarantees, such as the guaranteed minimum income benefit (GMIB), the guaranteed minimum withdrawal benefit (GMWB), the guaranteed lifetime withdrawal benefit, and the standalone lifetime benefit, but none are quite as reliable as the GMAB rider when it comes to securing protection from market fluctuations.

Ultimately, by investing in the GMAB option, annuity holders can rest assured that the money in their annuity is safe from dramatic changes in the market. The exact returns are never fully known, but when the holding period ends, account holders can take comfort in knowing that their annuity value cannot dip below the minimum benefit amount. This peace of mind is invaluable for individuals who are depending on their annuity for long term investments, retirement savings and future income.