Michigan Variable Annuities Practice Test

A step-up feature means the guaranteed amount (or the income base) increases over time. In GMDB riders, the death benefit guarantee can be raised at set anniversaries to reflect growth in the rider’s value, often supported by credited growth or additional premium payments. In GMIB riders, the guaranteed lifetime income is recalculated upward at reset dates, so you can receive a higher income later even if market values have fallen since. This provides protection against market downturns by locking in higher guarantees as the contract accumulates value. It is not a decrease, a freeze, or a conversion to a fixed annuity.