When purchased with a NYLIAC Variable Universal Life (VUL), VUL 20001, or Survivorship Variable Universal Life (SVUL)1 policy, the Guaranteed Minimum Death Benefit (GMDB)2 rider helps maintain the death benefit coverage despite the potential risks associated with variable life insurance products.
The GMDB rider guarantees that the death benefit protection of your policy won't lapse even if the cash surrender value is insufficient to cover monthly deduction charges.3 In short, your policy's death benefit is guaranteed, no matter how the market is performing.
The GMDB rider:
- Helps protect the policy's death benefit from potential market risks;
- Offers protection for the base policy's face amount and for eligible riders that are included with the policy; and
- Offers a choice of GMDB rider coverage periods (each with a required premium level) to meet your individual needs.
The monthly premium for a policy with the Guaranteed Minimum Death Benefit rider is determined when your policy is issued, and you must make premium payments for at least this amount to pass a monthly "GMDB premium test." As long as you do, the GMDB rider's death benefit protection remains intact.
How the rider works
On any monthly deduction day when the policy's cash surrender value is not sufficient to cover the required monthly deduction charges, the GMDB rider is activated to pay these charges - which are necessary to maintain your policy's death benefit protection.
If any part of the monthly deduction charges exceeds your policy's available cash surrender value, the GMDB rider covers these charges, as well as the charges for the rider itself and any other riders included with the policy. By doing this, the GMDB rider protects the policy's death benefit even if market fluctuations reduce the policy's cash surrender value.
Separate account charges4 are not covered by the GMDB rider. They are deducted from the fund returns before returns are credited to your policy.
1 The GMDB rider cannot be selected with the Supplementary Term Rider (STR) for NYLIAC VUL 2000 or NYLIAC SVUL policies.
2 The GMDB rider is not available in Massachusetts, New Jersey, New York, and Texas. In Maryland, the GMDB rider is known as the Guaranteed No Lapse Benefit.
3 Monthly deduction charges are the cost of insurance, monthly contract charge (separate account administrative charges for VUL 2000), and charges for policy riders, if any.
4 Separate account charges include the mortality and expense risk fee, administrative fee (not charged at a separate account level for VUL 2000), and annual fund expenses.
Available Benefit Periods
You have a choice of rider coverage periods. The GMDB rider must be elected for a minimum of ten years. The longer the coverage period selected, the greater the required premium for the rider.
|Available Rider Periods||Available at Issue Ages|
|VUL||To Age 70||0-60|
|To Age 80||0-70|
|To Age 955||0-80|
|VUL 2000||To Age 70||0-60|
|To Age 80||0-70|
|To Age 1005||0-80|
|SVUL||To Younger Insured's Age 80||20-90 (Both Insureds)|
|To Younger Insured's Age 100||20-90 (Both Insureds)|
To maintain the guaranteed death benefit provided by the GMDB rider, limitations on policy loans exist. If a loan is taken during the first two policy years, the rider ends.
After the first two policy years, loans are permitted - but may be limited. If the amount of the loan would cause the GMDB rider to end, you will be notified before the loan is processed.
When the Rider Ends
The GMDB rider ends:
- On the policy anniversary when the insured covered under the policy reaches the age on the rider benefit period you've selected;
- If the GMDB premium test is not satisfied on a monthly deduction day, and any required payment is not received by the next monthly deduction day;
- If a policy loan is taken during the first two policy years, or if a loan is requested after the first two policy years in excess of the available amount; or
- If the policy is terminated, surrendered, or cancelled by the policyowner.
Talk to your Registered Representative
Your registered representative can provide additional information about the protection available with the Guaranteed Minimum Death Benefit rider and other features of a NYLIAC vul, VUL 2000, or Survivorship Variable Universal Life policy. He or she will provide you with a current NYLIAC VUL, VUL 2000, or SVUL policy prospectus, which contains more complete details, including fees and charges. Please read it carefully before making any purchase decisions.
5The VUL GMDB rider to age 95 and VUL 2000 GMDB rider to age 100 are not available on policies issued with a Substandard underwriting class.
New York Life Insurance Company
New York Life Insurance and Annuity
Corporation (A Delaware Corporation)
51 Madison Avenue
New York, NY 10010
Issuer: New York Life Insurance and Annuity Corporation (A Delaware Corporation)
Distributor: NYLIFE Distributors LLC
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|Guaranteed Minimum Death Benefit (GMDB) Rider|