Annuity income base is an internal value used exclusively to calculate lifetime income benefits under certain annuity riders, often differing from the contractTMs actual account value. The income base may grow by a guaranteed roll-up rate, step-ups to market highs, or a combination of both, and it is typically not available as a lump-sum cash value. When the owner elects income, the insurer applies a payout factor to the income base to determine the guaranteed lifetime payment. Income bases allow insurers to offer attractive-looking benefit values while managing risk through separate account-value mechanics and rider fees.

Advisors explain annuity income bases when presenting income riders, clarifying that clients cannot withdraw the income base itself but instead receive payments derived from it. They show how the income base might grow over time, how step-ups lock in gains, and how activating income at different ages affects payout factors. During reviews, advisors monitor both account value and income base, ensuring clients understand the tradeoffs of taking withdrawals before turning on income. In replacement or 1035 scenarios, they compare existing income bases and guarantees to those offered by new contracts. Understanding annuity income bases helps advisors prevent confusion between real cash values and calculation values, maintaining trust while leveraging powerful income guarantees.