Accumulation Benefits

Accumulation Benefits

An addition to the death benefit of a life insurance policy. See also: Whole life insurance.
References in periodicals archive ?
The markets' subpar performance reduced the amount of variable annuity-related reserves (connected with guaranteed minimum death, income, withdrawal and accumulation benefits) that "could be released into earnings."
Allianz Life said that, unlike current variable annuities with Guaranteed Minimum Accumulation Benefits that require waiting periods of up to 10 years, the new Index Advantage product provides opportunity for benefits to be protected every year.
2) Guaranteed Minimum Accumulation Benefits (GMABs)--guarantee that the owner never receives less than a certain amount of AV at a stated point in the future.
With interest rates so low, the traditional products are not able to provide significant wealth accumulation benefits. The indexed product, even with the horrible economy we have faced for the past 10 years, has still earned upwards of 8%.
And on the living-benefit side, despite consumer demand for guaranteed withdrawal benefits, Hegna said he is a big fan of guaranteed-minimum accumulation benefits. "It guarantees your cash," he said.
Some, like those with guaranteed minimum accumulation benefits guarantee that the account value will not be lower than the amount invested at some future time.
This virtually erodes the accumulation benefits of tax-deferral.
Election rates for guaranteed minimum withdrawal benefits (GMWBs) and guaranteed minimum accumulation benefits (GMABs) were less than 10% throughout 2008.
More recent benefits that do not require annuitization include guaranteed minimum withdrawal benefits, minimum withdrawal benefits for life and minimum accumulation benefits in the account value.
Carriers not only developed these benefits, but also added some innovative new enhancements such as bonuses credited to the benefit base of the GLWB and simple interest accumulation benefits. Undoubtedly, 2009 will be another year of carriers thinking outside-the-box, in an attempt to gain market share in the IA-GLWB market.
From guaranteed minimum accumulation benefits to expanding existing life products to formerly difficult-to-insure customers, innovation among life and annuity writers is impacting reinsurers.
* The industry is only in the beginning stages of developing minimum accumulation benefits and minimum withdrawal benefits.