{"id":22939,"date":"2014-11-10T07:13:00","date_gmt":"2014-11-10T07:13:00","guid":{"rendered":"https:\/\/www.annuityfyi.com\/?page_id=22939"},"modified":"2022-12-16T15:57:22","modified_gmt":"2022-12-16T15:57:22","slug":"what-is-lib","status":"publish","type":"page","link":"https:\/\/www.annuityfyi.com\/annuity-riders\/lifetime-income-benefits\/what-is-lib\/","title":{"rendered":"Lifetime Income Benefit Provision"},"content":{"rendered":"
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Annuity FYI Overview<\/strong><\/h4>\n\n\n\n

Variable annuities come with a host of optional features that you can select for an additional annual fee. One increasingly popular type of variable annuity feature is the lifetime income benefit provision (LIB).
The concept behind a Lifetime Income Benefit is simple. If you purchase a Lifetime Income Benefit Rider with your variable annuity, the insurance company guarantees a regular monthly, quarterly, or annual payment for your lifetime, even if your account balance goes to zero. For example, suppose you invest $100,000 in an annuity with a 5 percent lifetime income benefit rider. The insurance company guarantees that you can withdraw $5,000 per year for the rest of your life, even if your account balance is zero. In such a case, the insurance company uses its own money to pay you, until you die. An LIB assures you that you will never outlive your assets. As such, LIBs are most suited for investors who plan on a lengthy retirement (say, thirty years or more), and the piece of mind of regular, guaranteed income.<\/p>\n\n\n\n

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