Guaranteed death benefit,
Definition of Guaranteed death benefit:
A guaranteed death benefit is a safety net if an annuitant dies while the contract is in the accumulation phase. This ensures that the annuitant’s estate or beneficiary will at least receive a specified minimum amount, even though the contract had not yet reached the point where it would start paying benefits. In some cases, the contract terms will stipulate that a designated individual will be instated as the new annuitant to assume the contract if the original annuitant dies during the accumulation period.
The term in an annuity contract that guarantees the contracts named beneficiary will receive the death benefit if the annuitant were to die prior to the annuity paying out benefits. Different annuity contracts have various types of guaranteed death benefits. The contracts beneficiary is guaranteed at least an amount that is equal to what was invested or the amount of the current contract value on the most recent policy anniversary - whichever amount is higher.
A guaranteed death benefit is a benefit term that guarantees that the beneficiary, as named in the contract, will receive a death benefit if the annuitant dies before the annuity begins paying benefits.
Meaning of Guaranteed death benefit & Guaranteed death benefit Definition