The primary benefit of a GLWB rider is that it safeguards you from the possibility of receiving a lower lifetime payout if the market takes a hit. In addition, the rider allows you to access your cash value if you need it, which you cannot do with a traditional annuity because it ties...
GLWB ridersurrender optionvariable annuityThis study investigates the pricing problem of a variable annuity (VA) contract embedded with a guaranteed lifetime withdrawal benefit (GLWB) rider. VAs are annuities in which the value is linked to a bond and equity sub‐account fund. The guaranteed life...
This paper offers a financial economic perspective on the optimal time (and age) at which the owner of a Variable Annuity (VA) policy with a Guaranteed Living Withdrawal Benefit (GLWB) rider should initiate guaranteed lifetime income payments. We abstract from utility, bequest and consumption ...