Assuris

Examples of Guaranteed Minimum Withdrawal Benefit (GMWB)


Example 1: In the Saving Phase

  • Policyholder initial investment: $80,000
  • Guaranteed Withdrawal Balance at time of insolvency: $100,000
  • No withdrawals have been made by the policyholder in the last twelve months

Guaranteed Withdrawal Balance
at Date of Insolvency

Explanation

Adjusted Guaranteed
Withdrawal Balance

$100,000
Since the amount is higher than $60,000, the 85% protection is applied to the Guaranteed Withdrawal Balance.
($100,000 x 85% = $85,000)
$85,000

Example 2: In the Payout Phase

  • Policyholder initial investment: $80,000
  • Guaranteed Withdrawal Balance at time of insolvency: $100,000
  • Guaranteed Income Benefit: $5,000/year
  • A withdrawal has been made by the policyholder in the last twelve months

Guaranteed Income Benefit
at Date of Insolvency

Explanation

Adjusted Guaranteed
Income Benefit

$417 / month
($5,000 / year)
Since the amount is below $2,000/month, the Guaranteed Income Benefit is fully protected.
$417 / month
($5,000 / year)

If the liquidator, appointed to manage the company failure, achieves a greater return on the policy than the Assuris protection, your benefits will be adjusted to the greater of either:
  • The Assuris protection or;
  • The amount recovered by the liquidator.