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.

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• Tax-Deferred Growth: Earnings grow without current taxation until withdrawn.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.