Guaranteed Minimum Withdrawal Benefit (GMWB)
A Guaranteed Minimum Withdrawal Benefit (GMWB) is an option available in some segregated fund policies. A GMWB in a segregated fund policy guarantees that the policyholder will continue to receive an annual income, for a specified term or for life, even if the fund becomes depleted due to poor market performance of the fund assets.
At the time of failure, the policy will either be in:
- The Saving Phase, if no withdrawals have been made by the policyholder in the last twelve months, or
- The Payout Phase, if a withdrawal has been made by the policyholder in the last twelve months.
If your life insurance company fails, the actual value of the fund is not impacted. Your segregated fund policies will be transferred to another solvent company and the promised guaranteed amounts will be protected by Assuris as follows:
- In the Saving Phase, Assuris guarantees that you will retain up to $60,000 or 85% of the promised Guaranteed Withdrawal Balance, whichever is higher. The Guaranteed Withdrawal Balance includes deposits, bonuses, resets and withdrawals prior to the insolvency date.
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- In the Payout Phase, Assuris guarantees that you will retain up to $2,000 per month or 85% of the promised Guaranteed Income Benefit, whichever is higher.
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