The Annuity Rider: What It Is and How It Can Benefit You

Shawn Plummer

CEO, The Annuity Expert

Understanding Annuity Riders

Annuity riders are additional features or benefits that can be added to an annuity contract. They are designed to provide extra protection, income, or benefits under certain conditions. These riders come at an additional cost and are optional.

What Is A Rider Fee On An Annuity

Types and Purposes of Annuity Riders

  1. Guaranteed Minimum Income Benefit (GMIB): Ensures a minimum income level regardless of market performance.
  2. Guaranteed Minimum Withdrawal Benefit (GMWB): Allows withdrawals up to a certain percentage of the premium paid.
  3. Guaranteed Minimum Accumulation Benefit (GMAB): Guarantees the policy value after a specified period, regardless of market conditions.
  4. Death Benefit Riders: Provide enhanced benefits to beneficiaries upon the annuitant’s death.
  5. Long-Term Care Riders: Offer financial assistance for long-term care expenses.
  6. Cost of Living Adjustment (COLA) Rider: Increases annuity payments to keep up with inflation.
What Is An Annuity Rider

Examples of Annuity Rider Benefits

  • GMIB Example: If you invest $100,000 and the market declines, the GMIB ensures you still receive a predetermined minimum income.
  • Death Benefit Example: If the annuitant passes away, the beneficiary might receive greater than the account value or premiums paid.

Organizing Annuity Rider Information

  1. Definition and Purpose
  2. Types of Riders
  3. Specific Benefits and Examples
  4. Cost Considerations
What Is Annuity Rider

Annuity Riders and Their Benefits

Rider TypePurposeExample Benefit
GMIBMinimum IncomeGuaranteed income regardless of market dips
GMWBWithdrawal AssuranceWithdraw a certain percentage annually
GMABValue ProtectionGuaranteed policy value after a set period
Death BenefitBeneficiary ProtectionEnhanced payout upon death
Long-Term CareHealth Expense CoverageFunds for long-term care needs
COLAInflation ProtectionIncreasing income to match inflation
Annuity Rider


Annuity riders offer added flexibility and security for annuity contracts, allowing individuals to tailor their retirement income to their specific needs and concerns. From income guarantees to long-term care coverage, these riders address a variety of concerns, ensuring financial stability in various circumstances. Remember, each rider comes at an additional cost and should be chosen based on individual needs and goals.

For more detailed guidance on selecting the right annuity rider, contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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