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The Highest Annuity Bonus Accounts

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Annuities with BonusesAre you searching for the highest bonus annuity accounts? Look no further. Our independent brokerage offers the best premium bonuses on first year and subsequent yearly deposits.

Interest rates and bonus amounts on annuities are constantly changing. It is best to give us a call in order to compare current yields and illustrations available in your State.

Some policies will require a future annuitization to capture the full bonus while others vest over time. It’s important to make sure any policy aligns with long term goals.

Index Annuity Accounts With Largest Bonuses

Insurance CompanyAM BestBonusAnnuity TermBonus Vests?Annuitize?Brochure
Allianz LifeA+40%20 YearsN/AYesDownload >
North American LifeA+26%14 YearsYes 14 YrsNoDownload >
Global AtlanticA20%10 YearsN/AYesDownload >
American LifeB++20%10 YearsYes 10 YrsNoDownload >
Midland National LifeA+19%14 YearsYes 14 YrsNoDownload >
Athene LifeA18%15 YearsYes 15 YrsYesDownload >
SILACB+18%10 YearsNoYesDownload >
Ibexis LifeA-16%10 YearsYesYesDownload >
Fidelity & Guaranty LifeA-15%10 YearsYes 10 YrsNoDownload >
Silac LifeB+14%7 YearsYes 10 YrsNoDownload >
Allianz LifeA+13%10 YearsYesNoDownload >
Equitrust LifeB++12%14 YearsNoNoDownload >
Aspida LifeA-10%10 YearsYes 10 YrsNoDownload >
AIG CorebridgeA10%8 YearsYes 10 YrsNoDownload >
American EquityA-10%16 YearsNoYesDownload >
Nassau LifeB+10%11 YearsYes 13 YrsNoDownload >

Considering An Annuity Rollover Or Exchange?

You may be looking for an annuity rollover and in need of a first year bonus to help recoup losses from an under-performing variable annuity or mutual fund. We can help.

However, it’s important to understand how annuity bonus accounts work. And you want to know what to expect before investing in one that offers the highest first year bonus. While there are plenty of accounts offering 10% premium bonuses or more, they work in different ways.

Some annuity accounts offer a 20% premium bonus for example, but they require a future annuitization. In other words, the bonus is only applied to a future stream of income. This is called an annuitization. In order 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

Most 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), then the larger the bonus.

First year only bonus accounts are usually appropriate for consumers who are 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 see this transaction work with life insurance plans as well. 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

Highest Annuity BonusesMulti-year bonus annuities are not as common as those with only a first year premium bump. They are popular with those who are 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. The advantage is that the income tax liability created by the Roth IRA conversion would be spread out over more than one year.

Multi-year annuity accounts are also appropriate for those who are 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, then 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, but effective means to create a future lifetime income. When a 10% bonus is added to the account value, future income streams are larger.

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 ten-year surrender term.

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.

It’s also important to know 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 policies. Vesting rules also come into play when the owner passes away. Should the account owner pass away prematurely, the bonus value may not be fully vested with some insurance companies.

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 high 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.

Category: Annuities, Articles, Retirement Planning

Last updated on August 2nd, 2023