Are you searching for the highest bonus annuity accounts? Our independent annuity brokerage offers the best premium bonuses on first year and additional yearly deposits.
Interest rates and bonus amounts on annuities are constantly changing. It is best to give us a call to compare current yields and illustrations available in your state of residence.
Some policies require a future annuitization to capture the full bonus while others vest over time. And others are for income streams only. It’s important to make sure any policy aligns with long term goals.
Index Annuity Accounts With Largest Bonuses
| Insurance Company | AM Best | Bonus Amount | Annuity Term | Bonus Vests? | Must Annuitize? | View Brochure |
|---|---|---|---|---|---|---|
| Allianz Life | A+ | 45% | 20 Years | N/A | Yes | Download > |
| Equitrust Life | B++ | 40% | 10 Years | Yes | No | Download > |
| Athene Life | A | 27% | 15 Years | Yes 15 Yrs | Yes | Download > |
| North American Life | A+ | 26% | 14 Years | Yes 14 Yrs | No | Download > |
| American Equity | A- | 23% | 16 Years | No | Yes | Download > |
| AuguStar Life | A | 21% | 10 Years | Yes 10 Yrs | No | Download > |
| American Life | B++ | 20% | 10 Years | Yes 10 Yrs | No | Download > |
| SILAC | B+ | 20% | 10 Years | No | Yes | Download > |
| Midland National Life | A+ | 19% | 14 Years | Yes 14 Yrs | No | Download > |
| Nassau Life | B+ | 18% | 11 Years | Yes 13 Yrs | No | Download > |
| Fidelity & Guaranty Life | A- | 17% | 10 Years | Yes 10 Yrs | No | Download > |
| Ibexis Life | A- | 17.5% | 10 Years | Yes | Yes | Download > |
| Revol One | B++ | 16% | 10 Years | Yes 10 Yrs | No | Download > |
| Farmers Life | B++ | 15% | 10 Years | Yes 10 Yrs | No | Download > |
| Delaware Life | A- | 15% | 10 Years | Yes 10 Yrs | No | Download > |
| Aspida Life | A- | 15% | 10 Years | Yes 10 Yrs | No | Download > |
| Global Atlantic | A | 14% | 10 Years | N/A | Yes | Download > |
| American National | A | 14% | 10 Years | Yes 10 Yrs | No | Download > |
| Silac Life | B+ | 14% | 7 Years | Yes 10 Yrs | No | Download > |
| Allianz Life | A+ | 13% | 10 Years | Yes | No | Download > |
| Equitrust Life | B++ | 12% | 14 Years | No | No | Download > |
| AIG Corebridge | A | 10% | 8 Years | Yes 10 Yrs | No | Download > |
Considering An Annuity Rollover Or Exchange?
You may be looking for an annuity rollover or exchange and in need of a premium bonus to help recoup losses. Many underperforming variable, fixed and income annuity accounts can be rescued with a first year premium bonus. We will help you compare your most suitable options.
It’s understand how annuity bonus accounts work. You want to know what to expect when investing in a policy with the highest first-year annuity bonus. While there are plenty of accounts offering 10% premium bonuses or more, they often work in different ways.
Some annuity accounts offer a 20-40% premium bonus for example, but they might require a future annuitization. In other words, the bonus is only applied to a future stream of income. This is called an annuitization. For the bonus to pay out, you must annuitize the entire account (principal, interest, and bonus) for a set number of years – or even a lifetime.
First Year Bonus Annuity Accounts
Many fixed and indexed annuities offer a one-time bonus on all premiums deposited in the first year. The bonus amount is usually tied to the term of the annuity. That is to say, the longer the term (in years), the larger the premium bonus.
First-year-only bonus annuity accounts can be suitable for consumers looking to exit an underperforming investment. Maybe they have lost money in a mutual fund or wish to exchange a variable annuity for a safer investment like a fixed or indexed account.
Upfront bonuses can recoup investment losses helping to ease the pain of exchanging a poorly performing annuity account. The accumulated value of the new account (including bonus) can help match the death benefit value or initial investment value of the old policy.
We also see this transaction work with life insurance plans. Many of our clients use a 1035 tax-free exchange when exchanging an old annuity policy for a new one. This method can defer taxes on any unrealized gains.
Multi-Year Fixed Premium Bonuses
Multi-year bonus annuities are not as common as those with only a first-year premium bump. Multi-year bonuses are popular with those saving for the long haul – one year at a time. A select few annuity providers will offer premium bonuses (some as high as 10%) on all deposits made in the first seven years of the account.
This is valuable for consumers who are slowly divesting from another investment. An example is someone who’s systematically converting a traditional IRA to a Roth IRA.
Also known as a Roth IRA Conversion, bonus annuities are great vehicles to accomplish this transition while mitigating taxes. The advantage is that the income tax liability created by the Roth IRA conversion would be spread out over several years.
Multi-year annuity accounts are also appropriate for those saving toward retirement. If larger deposits will be made over a 2-7 year time period, then the account owner can take advantage of the bonus opportunity. This provides a much larger principal amount to draw from during retirement.
Annuity Income Riders Offering Bonuses
Income riders are quite popular with investors who desire a future guaranteed income stream. When the rider is attached to certain fixed and indexed annuities, the income account value will also be credited with the bonus amount.
Those who want to divest a portion of their portfolio from the ups and downs of the overall markets are using guaranteed annuity income riders (with or without a bonus) as a simple and effective way to create future lifetime income. Future income streams are much larger when a premium bonus is added to the account value
What Are The Disadvantages To Annuity Bonuses?
The first and most obvious one is time. In order to secure a large first or multi-year bonus, you must be willing to commit your premium for a longer period of time. Any account offering a 10% or greater bonus will usually require at least a longer surrender term. Policies with 7, 10 , or even 14 year terms are common.
It is important to understand that annuity owners will always have penalty-free access to a portion of their invested funds. However, if you choose to withdraw all of your money before the annuity term is up, early surrender penalties will likely be encountered.
Surrender penalties are not assessed on regular income withdrawals, yearly principal (usually 10%-20%) or RMD disbursements, withdrawals for health reasons, during annuitization, or at death. Annuity investors with longer surrender periods have several ways to access their funds for any number of reasons without facing penalties.
Annuity Bonus Vesting Schedules
It’s important to understand if your annuity bonus vests over time – some do and some do not. If you withdraw your funds early, then the bonus might not be fully vested with some contracts.
Vesting schedules determine what happens when the owner passes away. Should the account owner pass away prematurely, the bonus value may not be fully vested with some insurance companies. This means the entire account value may not pass to the beneficiaries.
Buyers of annuities should ask if the first or subsequent year bonuses will mitigate future interest gains. In many cases, a fixed account with no bonus, but offering a guaranteed multi-year rate may offer better growth in the long run than one offering a larger first-year bonus.
Consumers should always ask about the guaranteed interest rates offered by the insurance company over the life of the contract depending on the type of annuity purchased. Fortunately, interest rates are competitive meaning consumers can lock in strong bonus annuities with strong crediting potential.
Summary, Quote Request & Investment Assistance
Annuities offering the best bonus rates may not be the same for every person and in every situation. And some may simply be inappropriate for certain investors. It is always wise to speak with an insurance expert to make certain all variables are thoroughly understood before investing.
Hyers and Associates, Inc. is a full-service, independent insurance agency specializing in fixed, indexed, and immediate annuity accounts. We help consumers all over the country with rollovers, 1035 exchanges, and retirement planning.