"Guaranteed minimum" refers to a certain amount or level that is promised or ensured to be provided under an agreement or situation. It means that there is a
guaranteed minimum amount or condition that will be met.
Full definition
The premiums you pay are guaranteed and you are also
guaranteed a minimum rate of interest on the cash value accumulation portion on most policies.
In other words, if the company's experience is favorable, cash values grow larger and more quickly than shown on the schedule of
guaranteed minimum cash values.
It's common for traditional publishers and others to claim that buying a traditionally published book
guarantees a minimum level of quality.
Note that while the cash value may be much higher due to the return on investment, you are usually
guaranteed a minimum payout regardless of how well the investments perform.
This plan also assures you to take care of your savings through
guaranteed minimum bonus interest rate applicable throughout the policy term.
Many policies will set a minimum amount on the death benefits, but the investment portion of your premiums will not
typically guarantee a minimum return.
The interest is actually a dividend from the insurance company's annual profits, but most insurers
guarantee a minimum yearly return.
If the annuity
guarantees a minimum periodic payout, the annuity costs will reflect the risk the insurer takes, and that risk is a premium built into the cost of the annuity.
The life insurance company
makes guaranteed minimum guarantees regarding the growth of the cash value, and most often this is greatly exceeded with dividend payments.
Also, variable universal life insurance policies may also offer a rider — at an additional cost — that will
guarantee a minimum death benefit, regardless of the underlying investment performance.
That strain has made it difficult for insurers to support certain policy guarantees, especially the very popular living benefit guarantees such as the guaranteed lifetime withdrawal benefit and
guaranteed minimum income benefit options.
Guaranteed minimum withdrawal benefit riders can be added to variable annuities to ensure that some minimum value is paid out even if the investments inside the contract perform poorly.
Many companies also
guarantee minimum interest rates within their life insurance cash value policies that guarantee you will lose no money, regardless of the current interest rate or what the stock market does.
Many policies will set a minimum amount on the death benefits, but the investment portion of your premiums will not
typically guarantee a minimum return.
Phrases with «guaranteed minimum»