Annuities✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
A guaranteed lifetime withdrawal benefit (GLWB) rider on an annuity guarantees the owner:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A guaranteed lifetime withdrawal benefit is an annuity rider that guarantees the owner can take withdrawals of a stated annual amount — typically a percentage of a benefit base — for life, even if the underlying account value is depleted. It converts part of the account into a lifetime income floor while preserving owner access to the remaining value. This rider is a key feature of modern deferred annuity products marketed for retirement income.
Why the other options are wrong
- B) A GLWB protects the withdrawal stream, not the account value; in a variable annuity the account value can still fluctuate and even reach zero.
- C) Income starting within 12 months describes an immediate annuity, not a deferred annuity with a withdrawal rider.
- D) Withdrawals above basis remain taxable; the GLWB guarantees lifetime income, not tax-free treatment.
Memory hook
GLWB = a lifetime income floor built into the account. The withdrawal check keeps coming even at zero.