GMDBGuaranteed Minimum Death Benefit (insurance)
Copyright 1988-2018, All rights reserved.
References in periodicals archive ?
In the case of a GMDB, it may be optimal to do so when the VA account value has risen (significantly) above the guaranteed amount.
In addition, we include a roll-up GMDB rider that pays out a benefit of
Lincoln National Life Lincoln LifeGuarantee Plus UL GMDB
The contributions of this article are, firstly, to calculate explicit fair fees; second, to provide explicit hedging strategies for GMDB, Guaranteed Minimum for Maturity Benefit (GMMB), and a Guaranteed Minimum for Accumulation Benefit (GMAB) with a ratchet feature; and, third, to extend the Coleman, Li, and Patron (2007) hedging strategy using standard options to a general Levy context.
The fair value of a variable annuity policy containing a GMAB and a GMDB rider as well as a surrender option, seen from the perspective of a policyholder, is determined by the following equation:
Thrivent Financial for Lutherans UL Lifetime Protector GMDB
GMDB policies generate little cash value and are designed for long-term (lifetime) death benefits with a guaranteed minimum premium outlay.
Since the middle of 1990s, variable annuity contracts have offered more substantial minimum death benefit guarantees (GMDB).
* GMDB (Guaranteed Minimum Premium/ Death Benefit).
A particular worry is that individual policyholders will choose to transfer their money from the variable account to the fixed account when the GMDB is in-the-money and thereby lock in a positive GMDB for a substantial period into the future.
And the guaranteed minimum death benefit (GMDB), while not a "living" benefit, delivers death benefit more like the accumulation value of a fixed annuity.
The authors use risk-neutral option pricing theory to value the guaranteed minimum death benefit (GMDB) in variable annuities (VAs) and some recently introduced mutual funds.