GUARANTEED MINIMUM DEATH BENEFIT Clause Samples
The Guaranteed Minimum Death Benefit clause ensures that a beneficiary will receive at least a specified minimum payout upon the policyholder's death, regardless of fluctuations in the policy's investment value. Typically found in variable life insurance or annuity contracts, this clause protects against market downturns by guaranteeing a baseline benefit, even if the account value drops below the guaranteed amount. Its core function is to provide financial security and peace of mind to beneficiaries by safeguarding them from potential losses due to poor investment performance.
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GUARANTEED MINIMUM DEATH BENEFIT. The GMDB is a feature providing for the option to receive an enhanced death benefit upon the death of the Owner during the Accumulation Period. If available at that time, the GMDB feature must be elected when you purchase your Contract. The amount of the GMDB is based on the GMDB Protected Value (see Protected Value section above). If you have elected the GMDB feature, and if the Owner dies before the Annuity Date, the death benefit payable to your beneficiary will be as described below: Upon receipt of due proof of death and any other documentation we need, the beneficiary is entitled to receive a death benefit equal to the greater of: the Contract Value as of the date we receive due proof of death and any other documentation we need; and the GMDB Protected Value as of the date we receive due proof of death and any other documentation we need. If you do not elect the GMDB feature, upon receipt of due proof of death and any other documentation we need, the beneficiary is entitled to receive a base death benefit equal to the greater of: the Contract Value as of the date we receive due proof of death and any other documentation we need; and the initial Invested Purchase Payment increased by subsequent Invested Purchase Payments and reduced by the effect of withdrawals. If the ownership of the Contract changes as a result of an assignment, the value of the death benefit will be reset to the Contract Value as of the date of the assignment. Such value will be treated as a Purchase Payment made on that date for purposes of computing the death benefit. The Beneficiary may, within 60 days of providing proof of death, elect to take the death benefit under one of the death benefit payout options listed below, provided that any payout option shall not include a period certain that exceeds the life expectancy of the Beneficiary. The Beneficiary will be the sole measuring life in determining the amount of any such payout option. If no payout option is selected within the 60 days, the death benefit will be payable as a lump sum. If a Beneficiary of the Owner having priority to be paid a death benefit is the spouse of the Owner at the time of the Owner's death, the Contract will continue and the spouse will become the Owner. The spouse may, within 60 calendar days of providing proof of death, elect to take the death benefit under any of the payout options available under this Contract. If the contract continues, and the new Annuitant is older than the prior Annuitant, th...
GUARANTEED MINIMUM DEATH BENEFIT. The amount of the Guaranteed Minimum Death Benefit (GMDB) is based on the death benefit option shown on the Policy Data Page. You may not change the GMDB option after the policy is issued.
GUARANTEED MINIMUM DEATH BENEFIT. The GMDB reinsured hereunder will be paid if an Annuitant dies prior to his or her retirement date. For issue ages 0-79, the amount of the death benefit is the greatest of: · the highest account value on any contract anniversary (prior to age 81) · total contributions minus any withdrawals · account value For issue ages 80-85, the amount of the death benefit is the greatest of: · total contributions minus any withdrawals · account value If the Annuitant is age 90 or older at the time of death (or 10 years from issue date, if later) the amount of the death benefit will be the account value. For purposes of calculation of the GMDB, the highest account value on any contract anniversary shall include subsequent contributions and minus any subsequent withdrawals. Withdrawals reflect market value adjustments applicable to withdrawals and reduce the GMDB on a pro-rata basis. The amount of the reduction will be determined by dividing the amount of the withdrawal by the annuity account value on the transaction date and multiplying this percentage by the then current GMDB.
GUARANTEED MINIMUM DEATH BENEFIT. There is a base Guaranteed Minimum Death Benefit provision. In addition, you may choose one of two Guaranteed Minimum Death Benefit options which provide different levels of death benefit guarantees. The two options have different issue requirements and guaranteed minimum death benefit monthly expense charges associated with them.
GUARANTEED MINIMUM DEATH BENEFIT. The amount of the Guaranteed Minimum Death Benefit (GMDB) is based on the death benefit option shown on the Policy Data Page. You may not change the GMDB option after the policy is issued. This GMDB is equal to:
(a) the step–up value as described below; plus
(b) any premium payments subsequent to the previous determination point minus
(c) any Adjusted Partial Withdrawals subsequent to the previous determination point. On the Policy Date. the step–up value is the Policy Value. On each Policy Anniversary (referred to as the determination points) prior to the earlier of the date of death of the Annuitant or the Annuitant’s 8 1 st birthday, a comparison is made between (a) and (b), where (a) is the Policy Value at this point in time and (b) is the previous step–up value, plus premium payments minus Adjusted Partial Withdrawals (as described below) made since the previous determination point The larger of (a) and (b) becomes the new step–up value. This step–up process stops at the earlier of the date of death of the Annuitant or the Annuitant’s 81st birthday. The then current step–up value becomes the final step–up value.
GUARANTEED MINIMUM DEATH BENEFIT. The GMDB is a feature providing for the option to receive an enhanced death benefit upon the death of the Owner during the Accumulation Period. If available at that time, the GMDB feature must be elected when you purchase your Contract. The amount of the GMDB is based on the GMDB Protected Value (see Protected Value section above). If you have elected the GMDB feature, and if the Owner dies before the Annuity Date, the death benefit payable to your beneficiary will be as described below: Upon receipt of due proof of death and any other documentation we need, the beneficiary is entitled to receive a death benefit equal to the greater of:
GUARANTEED MINIMUM DEATH BENEFIT. 1. The indemnity cession shall be the share of the MNAR (defined in Article IV) that is generated, prior to the termination of the Reinsurer's liability (defined in Article II), by the Guaranteed Minimum Death Benefit ("GMDB").
2. The Reinsurer's maximum aggregate MNAR (defined in Article IV) liability has no calculated aggregate limit.
3. This Agreement covers only the Cedent's contractual liability for reinsured claims paid under variable annuity contracts specified in Schedule A and its Amendments related to contract and program changes that were submitted to the Reinsurer in accordance with the terms of this Agreement as set forth in Article XV.
4. Contracts issued by the Cedent which have external reinsurance will be excluded from this Agreement.
GUARANTEED MINIMUM DEATH BENEFIT. 1. For an individual contract, the liability of the Reinsurer under this Agreement will terminate either in accordance with Paragraph B, above, or upon the earliest of the following occurrences defined in the contracts ceded hereunder:
a. the date the owner elects to annualize;
b. surrender or termination of the contract;
c. the death of the owner or annuitant where such death triggers the payment of a contractual benefit, except when spousal continuance has been elected. On spousal continuance election, the Reinsurer's liability will be terminated upon death of the spouse; and
d. attainment of the maximum annuitization age or attained age 95, if earlier.
2. The Reinsurer shall indemnify Reinsured Contract claims only on those deaths as to which the actual date of death is on or after the Effective Date.
GUARANTEED MINIMUM DEATH BENEFIT. On each Contract Anniversary on or before the Owner's 85th birthday, the Guaranteed Minimum Death Benefit is recalculated and will equal the greater of:
GUARANTEED MINIMUM DEATH BENEFIT. The Purchase Payment reduced proportionally for any partial withdrawals prior to the date the Request for payment is received.