The investment performance of premiums and cash value allocated to the separate account supporting variable annuities, depending on the specific equity or debt allocation, generally mirrors the performance of the equity markets. To provide a floor on the downside risks characteristic of equity markets, variable annuity contract owners have increasingly turned to the popular guaranteed living benefits.

This course provides a detailed study of these benefits, and explains the four most common GLBs: the guaranteed minimum accumulation benefit, the guaranteed minimum income benefit, the guaranteed minimum withdrawal benefit, and the guaranteed lifetime withdrawal benefit. The course covers the features of these benefits, how they work, and how they provide a measure of protection for variable annuity owners. Most importantly, the student will become familiar with the needs each GLB is designed to meet as well as the suitability issues that arise in connection with their recommendation.

Upon completion of this course, students will be able to:

• describe the types of guaranteed living benefits available to contract owners
• explain how insurers use a hypothetical benefit base to determine the amount of each guaranteed living benefit
• identify the concerns and suitability issues associated with the recommendation of a guaranteed living benefit
• describe the process by which a contract owner may access the various guaranteed living benefits

Life insurance and annuity producers, financial planners and advisors