What Is GMIR?
A guaranteed minimum interest rate (GMIR) is a contractual promise, often found in fixed annuities, that an insurance company will pay at least a certain low percentage (e.g., 1%-3%) on an investment, protecting against market downturns, though higher rates can be declared; it acts as a safety net for risk-averse investors, ensuring principal safety even if the company's actual investments perform poorly.GMIR is the lowest annual interest rate a fixed annuity will credit, as stated in the contract. It protects against extreme rate declines.
Where to Find It
GMIR is disclosed in your policy and illustration. Review your issue documents and ask your advisor to confirm the current floor.
How It Works with Declared Rates and Renewals
Declared rates may change at renewal, but cannot go below GMIR during the guaranteed period specified. Compare products and renewal histories on your fixed annuity overview and fixed annuity rates pages.
Why GMIR Matters
- Sets a worst-case accumulation assumption.
- Helps evaluate conservative growth scenarios.
- Useful for laddering and liquidity planning.
Frequently Asked Questions
Can GMIR change after issue?
GMIR is defined in your contract. Some policies allow changes for future renewal periods within regulatory limits; others fix GMIR for the surrender term.
Is GMIR the same as guaranteed minimum value?
No. GMIR is a rate floor. Guaranteed minimum value refers to provisions affecting surrender values and may include market value adjustments (MVA).
Does GMIR apply to MYGAs and renewal periods?
Yes, but the guaranteed term in a MYGA may be different from renewal periods. Compare the declared rate, GMIR, and surrender schedules for your specific product.
Get unbiased annuity guidance
Compare rates, understand riders, and choose confidently. We’ll walk you through options in plain English.
