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Met Life Guaranteed Minimum Income

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I had a contact from an insurance sales rep who represents Met Life and they offer a program called GMIB, or guaranteed minimum income benefit. The rider protects your investment against any downside risk by guaranteeing you an alternative account that is guaranteed to grow at 6% for a minimum of ten years. I have not seen the prospectus yet on this product.

 

This means you could take more risk with your portfolio with supposedly no downside risk???

 

I've learned a long time ago that there is nothing "free" in life. There has to be a catch with this plan. Has anyone had experience or heard of this from one of your reps and could you give me your opinions. Thank you.

 

 

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Why not read the prospectus prior to posting? You may very well decide not to post because you understand the product perfectly. If you still require clarification we will be glad to assist.

 

Peace,

Joel

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Guest eddie

The downside is you have to give Metlife your funds-(annuitize) to get this benefit-

 

you have to leave the $$ with Metlife for 10 years- what if you earned 5% on your funds are you wlling to annuitize your account. the really question is what is the cost of this benefit- it win & win for Metlife

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Guest Guest_LBJackson

Annuity Company slight-of-hand is at work here.

 

An ANNUITY is a vehicle whereby one make elect to have an income for life, i.e. you cannot outlive the monthly cash flow. The payments to you are for life and cease at your death. IMMEDIATE annuities are likewise to winning the lottery, a lump sum is dumped into the coffers of an insurance company and they pay a fixed amount for as long as you live. You die early and they keep the balance (yes...other arrangements can be made for survivors, but it will cost you with a reduction of monthly benefits).

 

Aside from a LUMP SUM funding of the annuity are periodic payments, say monthly for 20 or 30 or 40 years. This is the ACCUMULATION phase of creating a future LIMP SUM that may be converted into a GUARANTEED INCOME FOR LIFE, or an ANNUITY PAYOUT.

 

What you were offered is just another name for an ANNUITY. All annuities have a minimum guaranteed payout based upon an amount, a gender (ususally), and an age.

 

Hope this helps.

 

LBJ

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Guest eddie

Please aware that in most cases your annuity options will limited if you use the GMIB option.. Win for Win Insurance for companies

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Again, I appreciate the information and help.

 

Joel, obviously, if I had the prospectus I would read it. I thought these kind of sites were here to help one another. If you can't help, I guess you don't need to respond!

 

 

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