Fixed Indexed Annuity with Guaranteed Lifetime Withdrawal Benefit (GLWB) Income Calculator & Roll-Up Tables

## Guaranteed Lifetime Withdrawal Benefit (GLWB) Mechanics

A Guaranteed Lifetime Withdrawal Benefit (GLWB) rider provides contractual, guaranteed income for life without requiring irrevocable annuitization (loss of principal control). The insurer maintains two distinct accounting books: the **Account Value** (cash surrender value linked to index caps) and the **Income Base** (a protected ledger used solely to calculate lifetime income payouts).

### 1. Income Base Roll-Up vs Real Cash Value

$$\text{Income Base}_t = \text{Premium} \times (1 + r_{\text{roll-up}})^t$$

$$\text{Annual Guaranteed Lifetime Income} = \text{Income Base}_{t} \times \text{Payout Factor}(\text{Age})$$

| Age at First Withdrawal | Payout Factor (Single Life) | Payout Factor (Joint Life) | 10-Yr Compounded Income Base on $500k | Annual Guaranteed Income |
|:-----------------------:|:---------------------------:|:--------------------------:|:-------------------------------------:|:------------------------:|
| 60 | 4.75% | 4.25% | $983,575 (7% roll-up) | $46,720 / year |
| 65 | 5.50% | 5.00% | $983,575 (7% roll-up) | $54,096 / year |
| 70 | 6.25% | 5.75% | $983,575 (7% roll-up) | $61,473 / year |
| 75 | 7.10% | 6.60% | $983,575 (7% roll-up) | $69,833 / year |

### 2. The Drag of Ongoing Rider Fees

GLWB riders incur annual fees ranging from 0.95% to 1.35%, deducted directly from the contract's real cash Account Value. During periods of flat market index performance, rider fees cause real cash value depletion, effectively locking the policyholder into holding the contract until mortality cross-over to realize the projected roll-up value.