Question

A _______________ guarantees that if the contract owner of a variable annuity dies prior to annuitization the beneficiary will receive at least as much from the variable annuity as the owner paid in premiums.

Answer 1

Guaranteed Death Benefit

Step-by-step explanation:

A guaranteed death benefit may be defined as a benefit term which guarantees that a beneficiary will surely receive a
`\text{death benefit}` if the annuitant expires or dies before the annuity begins paying the benefits.

It is a safety net where when the annuity dies while making the payments or the contract is in the accumulation phase.

Variable annuity is defined as an agreement or a
`\text{contract}` between a person and the
`\text{insurance company}`, under which the
`\text{insurer agrees}` to make
`\text{periodic payments}` to the person, beginning either immediately or at some future date.

Thus,
`\text{Guaranteed Death Benefit}` guarantees a beneficiary to receive payments from the variable annuity which is guaranteed by the Guaranteed Death Benefit when the contract owner of the variable annuity dies before annuitization.