For variable annuity contracts, a provision which provides that, should the annuitant or owner die before benefits begin, the beneficiary will receive no less than the amount originally invested (regardless of investment experience) or the actual value of the contract, if greater. In some annuities, the guaranteed amount is periodically increased.
This is the minimum death benefit that will be paid. The death benefit is guaranteed in a whole life policy. With variable life and other non-traditional products, provisions are often available to provide limited death benefit guarantees.
The guarantee is that upon death of the annuitant, the beneficiary will receive the greater principal, plus any additions, or the value of the account as the annuitant's date of death.
The minimum death benefit that will be paid, regardless of dividend and investment experience. The benefit can be adversely affected by untimely premium payment and policy loans. Death benefits are guaranteed with Traditional Whole Life insurance; limited guarantees apply for and blended products.
The basic death benefit offered under virtually all variable annuity contracts. Payment is equal to the greater of (1) the contract value, and (2) purchase payments less withdrawals, and is made to the beneficiary upon the death of the owner and/or annuitant. Many variable annuity contracts now offer "enhanced" death benefits.
Basic death benefits guaranteed under variable annuity contracts.
For variable annuity contracts, the guarantee provides that, upon the death of the annuitant or owner during the accumulation period before age 65, the beneficiary receives at least the amount originally invested (minus withdrawals)—or—the value of the contract, whichever is greater. For fixed annuity contracts, the beneficiary receives the accumulation value if the annuitant dies before the contract matures.