Annuity guaranteed value is the minimum account or benefit value that an annuity contract promises under specific conditions, such as a guaranteed minimum accumulation value, income base, or death benefit. These guarantees provide a floor under market performance or interest-rate changes and are backed by the insurerTMs claims-paying ability. Guaranteed values are often distinct from current account values and may be used solely for calculating income payouts or death benefits, not for cash surrender. Understanding which values are guaranteed and how they are calculated is essential to accurately setting client expectations.

Advisors explain annuity guaranteed values when discussing riders like guaranteed minimum income benefits or enhanced death benefits. They often show separate columns on illustrations for account value and guaranteed value, clarifying which numbers represent real walk-away cash and which are calculation-only figures. In poor markets, guaranteed values can reassure clients that long-term income expectations remain intact even if account balances lag. Advisors also evaluate the cost of riders that create additional guaranteed values, weighing fees against the psychological and financial benefits of stronger floors. Understanding annuity guaranteed values helps advisors translate multi-column statements into clear, meaningful explanations for clients concerned about downside risk.