Guaranteed Minimum Withdrawal Benefit. A type of
rider on a
Variable Annuity insurance product.
Variable Annuities are sold by insurance companies and the a la carte riders (e.g. GMWB) are a form of
exotic option product.
A Guaranteed Minimum Withdrawal Benefit confers on the holder of a
Variable Annuity the right to withdraw a certain dollar amount per year irrespective of the performance of market conditions for an underlying account.