Page 242 - A Canuck's Guide to Financial Literacy 2020
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increased as well. The payout amount increases if extra deposits are contributed into the
contract.
Terms of Payout Phase
Guaranteed Minimum Withdrawal Benefit Plans (GMWB) payout phase begins at a certain
age and lasts for a specified period of time. The payout phase can be for a term or for life. A
lifetime payout phase will have a lower monthly withdrawal amount as the income is for life.
Individuals who are worried for outliving their financial resources may opt for a lifetime
payout phase.
