Best Annuities That Offer a Premium Bonus

Shawn Plummer

CEO, The Annuity Expert

A bonus annuity is a type of annuity that pays out an additional sum of money, or bonus, at some point now or in the future. This bonus can be a set amount of money, or it can be a percentage of the original investment. In this guide, we will discuss how bonus annuities work and how you can benefit from them!

How Does A Bonus Annuity Work?

Bonus annuities work by giving the policyholder an additional sum of money, or bonus, either immediately or in the future. This bonus can be a set amount of money or a percentage of the original investment.

For example, if you invest $100 in a bonus annuity, you may receive an additional $20 bonus for every contribution to the contract.

The purpose of a bonus annuity is to encourage policyholders to keep their money invested for a longer period of time. By offering a bonus, annuity providers can offer higher payouts than traditional annuities.

What Are The Benefits Of A Bonus Annuity?

Several benefits come with investing in a bonus annuity.

  • Policyholders can receive a higher rate of return on their investment.
  • Bonus annuities are often more flexible than traditional annuities, allowing policyholders to withdraw their money earlier if they need to.
  • Bonus annuities can provide peace of mind, knowing that you will receive a bonus at some point in the future.
  • Annuity owners wanting to replace their current annuity with a new one can use a bonus to offset any surrender charges applied for prematurely canceling the annuity.

What Are The Drawbacks Of Bonus Annuities?

  • The upside potential may be lower than an annuity without a bonus.
  • The bonus may not be fully vested until years after the annuity’s surrender charge period.

The Best Annuities With A Premium Bonus

So you’re looking for annuities with a premium bonus? Well, look no further. Below is an ever-growing list of bonus annuity products that offer a real premium bonus when you open up a retirement plan.

Now with that said, be careful.

Always check the rates to ensure you have the best opportunity to grow your retirement savings. A bonus today may make you happy now, but in the future, it may not.

What Is A Bonus Annuity?

A bonus annuity is an annuity that provides a bonus as an incentive to purchase the contract. The bonus is based on the initial purchase amount and often has vesting schedules, meaning the bonus is credited on day 1, earns interest on day 1, but vests over the entirety of the contract. Suppose the annuity is canceled before the contract term is complete. In that case, the bonus is pro-rated based on the amount of time in the contract before surrendering, canceling, or transferring away.

Ideal Scenarios To Purchase Bonus Annuities

Bonus Annuity Rates

AnnuityLengthRatingBonus (Up To)
American Select Bonus Plus10 yearsB++16%
Athene Performance Elite PLUS 1515 yearsA20%
Athene BCA 12 2.012 YearsA14%
American Select 7 Series Bonus Plus7 yearsB++11%
Athene Performance Elite 10 Plus10 yearsA16%
North American Secure Horizon Plus10 yearsA+15%
Equitrust MarketPower Bonus14 yearsB++10%
Midland IndexBuilder 1414 yearsA+11%
F&G Performance Pro10 yearsA-15%
Athene Performance Elite 1515 yearsA15%
Athene Performance Elite 1010 yearsA10%
North American Charter Plus 1414 yearsA+10%
Athene BCA 10 2.010 yearsA12%
Midland IndexBuilder 1010 yearsA+7%
Americo LibertyMark 10 Plus10 yearsA7%
North American Charter Plus 1010 yearsA+8%
Athene Performance Elite 7 Plus7 yearsA6%
Athene BCA 8 2.08 yearsA6%
Fidelity & Guaranty Accelerator Plus 1010 yearsA-5%
Fidelity & Guaranty Prosperity Elite 77 yearsA-4%
Americo ClassicMark 10 Plus10 yearsA4%
AIG Power Select Builder 88 yearsA10%
American Select 10 Series Bonus10 yearsB++10%
American Select 7 Series Bonus7 YearsB++7%

Next Steps

Bonus annuities can be a great way to grow your retirement savings. They can provide an extra income boost when you need it the most. Additionally, bonus annuities can help you keep pace with inflation.

There are a few things to consider before investing in a bonus annuity. Make sure to do your research and contact us to see if a bonus annuity is right for you.

Bonus Annuities

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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