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175 Don’t Make Me Say I Told You So

Most death benefits also offer “step-ups,” which allow you to lock
in gains above your original investment if your annuity increases
in value. These step-ups usually end when the contract owner

reaches age 81, are typically annual, and the amount is locked in

only when it’s above the previous “high water mark”-value of your
subaccounts.

Death benefit riders cost more than the basic death benefit. A
rider that has a monthly step-up may cost anywhere from 0.25%

to 0.5% per year.

Illustration of maximum anniversary value step-up
Current value
GMDB annual step-up
Anniversary mark
Initial investment

Year 1 2 3 4 5 6

Source: Morningstar 2014

Your beneficiaries can receive the highest account value that has been locked in by the annual
step-ups.*

Chapter 4: Annuities

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