Best Upfront Bonus Annuity
At Diversified Insurance Brokers, we understand that for many retirees and pre-retirees, the size of your initial account value matters just as much as long-term growth. Annuities with an upfront bonus can give your retirement savings an immediate boost, often by 5%–20% at the time of contract issue. These bonuses can enhance income guarantees, increase accumulation value, or both—making them especially appealing for those looking to maximize benefits right away.
Compare the Best Upfront Bonus Annuities
See current bonus rates, features, and guaranteed income options from top-rated carriers.
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How an Upfront Bonus Works
An upfront bonus annuity adds a percentage to your initial premium at contract issue. For example, if you invest $100,000 into a 10% bonus annuity, your contract value might start at $110,000. The bonus may apply to your accumulation value, income benefit base, or both, depending on the product.
Potential Advantages
- Immediate Account Boost: Enhances your accumulation value from day one.
- Higher Income Base: If the bonus applies to the income benefit base, it can increase your lifetime payout amount.
- Tax-Deferred Growth: Earnings grow without current taxation until withdrawn.
- Market Protection: Many bonus annuities offer fixed indexed crediting strategies that protect against losses.
Considerations Before Choosing
- Longer Surrender Periods: Bonus annuities often require a longer commitment.
- Lower Crediting Rates: The trade-off for the bonus may be lower long-term growth potential.
- Withdrawal Restrictions: Bonuses may be forfeited if large withdrawals are taken early.
Top Bonus Annuities Available Now
Bonus rates and features change frequently. At the time of publication, many leading carriers—such as Athene, F&G, and Delaware Life—are offering competitive upfront bonuses along with strong income rider options. The right choice depends on your timeline, income goals, and risk tolerance.
Why Work with Diversified Insurance Brokers
We compare over 75 top-rated annuity carriers, allowing you to see which bonus annuities provide the most value for your unique retirement plan. Our independent status means we work for you—not the insurance companies—and focus solely on finding the best fit for your needs.
Bottom Line
An upfront bonus annuity can be a powerful tool for boosting your retirement income or growth potential right from the start. With guidance from Diversified Insurance Brokers, you can ensure you’re getting the highest bonus available without sacrificing essential features like income guarantees, liquidity, and competitive growth potential.
Find the Best Bonus Annuity for Your Goals
Secure a competitive upfront bonus and guaranteed retirement income with expert help from Diversified Insurance Brokers.
✅ Current Bonus Annuity Offers (as of September 2025)
| Term | Bonus | Provider | Product | AM Best Rating |
|---|---|---|---|---|
| 5 Years | 12% | GILICO | Growth Builder 5 | A- |
| 7 Years | 17% | Am. Life | American Select Bonus | A |
| 8 Years | 3% | Nationwide | New Heights Select | A+ |
| 9 Years | 5% | Americo | Ultimate One | A |
| 10 Years | 23% | Midland National | Index Builder Plus | A+ |
| 14 Years | 29% | North American | NAC Charter Plus | A+ |
| 15 Years | 27% | Athene | Performance Elite Plus | A+ |
Bonus amounts apply to the initial premium and may vary by state availability, rider selection, and contract terms. Some products also include guaranteed lifetime income, enhanced death benefits, or liquidity features.
FAQs: Best Upfront Bonus Annuity
What is an upfront bonus annuity?
It’s typically a fixed indexed annuity (FIA) that credits an immediate bonus—usually a percentage of your premium—to the contract on day one. The bonus may apply to the account value, the income base for a rider, or both, and it commonly vests over time.
Does the annuity bonus vest right away?
Often, no. Many contracts use a vesting schedule. If you surrender early or exceed free-withdrawal limits, some or all of the unvested bonus can be “recaptured.” Always review the vesting and recapture provisions before buying.
Is the bonus added to my income base only?
Sometimes. A bonus might credit only the income base used to calculate lifetime withdrawals (not cash value), or it may split between the accumulation value and income base. Check where the bonus applies and how it’s used.
What trade-offs come with higher annuity bonuses?
Bigger bonuses often pair with longer surrender periods, tighter caps/participation rates/spreads on indexed strategies, higher rider fees, or stricter withdrawal rules. Compare total value, not just the headline bonus.
Can a MYGA or SPIA have an upfront bonus?
Upfront bonuses are most common on FIAs. MYGAs (multi-year guaranteed annuities) focus on a fixed declared rate, and SPIAs (immediate annuities) pay income right away—bonuses on these are uncommon.
How do RMDs interact with bonus annuities in an IRA?
Most FIA contracts are “RMD-friendly,” allowing RMD withdrawals without surrender charges. However, RMDs can still affect index credits or rider calculations depending on the contract. Verify RMD provisions for your specific annuity.
Will I pay taxes on the bonus?
Tax treatment follows annuity rules: you’re generally taxed on earnings when withdrawn (ordinary income). In qualified accounts (IRAs), distributions are taxable; in non-qualified, withdrawals are typically LIFO (earnings first). Consult a tax professional for your situation.
Can I 1035 exchange into a bonus annuity?
Often yes, but you’ll still be subject to the new contract’s surrender period, rider fees, and bonus vesting rules. Ensure the long-term economics (income quote, caps, fees) justify moving from your current contract.
Who is a good fit for an upfront bonus annuity?
Investors seeking protected growth or future lifetime income who can commit to a multi-year surrender schedule. It can help jump-start an income base if you plan to turn on income after a deferral period.
How do I compare “best” bonus annuities?
Look beyond the bonus: evaluate surrender length, caps/participation/spreads, rider fees, payout rates at your target age, free-withdrawal/RMD rules, and the insurer’s financial strength. Ask for a side-by-side illustration showing income at the age you’ll actually start.
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