Not all annuities are created equal.  Below is a Bonus Annuity Comparison chart.  Some provide steady fixed rates, others offer upfront bonuses, and a few combine both safety and guaranteed growth. The 40% Bonus Annuity stands apart with a clear promise: your account value is guaranteed to grow to at least 140% of your original deposit after 10 years. But how does that compare to traditional fixed annuities and standard bonus FIAs?

This page provides a side-by-side look at the strengths and weaknesses of each option so you can make an informed decision about where to place your retirement dollars.

What Is the 40% Bonus Annuity?

The 40% Bonus Annuity is a fixed indexed annuity (FIA) designed to guarantee long-term growth while protecting your principal. Here’s what makes it different:

• Guaranteed 40% Growth: At the end of 10 years, your premium is guaranteed to be worth at least 140% of its starting value.
• Upside Potential: Multiple index crediting options provide additional growth potential on top of the guarantee.
• Legacy Boost: Enhanced death benefit values provide additional security for your beneficiaries.
• Liquidity: Withdraw up to 7% annually after the first year, with nursing home and terminal illness riders included.

Traditional Fixed Annuities

A traditional fixed annuity provides a declared interest rate for a set term. These products are safe, predictable, and easy to understand. However, they do not offer bonuses or index participation. Current rates (as of 2025) range from 4–6%, depending on term length.

• Pros: Simplicity, guaranteed rate, no market risk.
• Cons: Limited upside, no bonus, earnings capped at fixed interest.

Standard Bonus FIAs

Bonus FIAs add an upfront credit—usually between 5% and 15%—to your initial premium. These bonuses often apply to income rider values rather than cash accumulation, meaning the advertised “bonus” may not directly increase your withdrawal value. Still, they can provide meaningful benefits for retirement income planning.

• Pros: Immediate upfront value, potential for higher income rider payouts.
• Cons: Bonuses are smaller (5–15%) and often limited to rider income base, not actual account value.

Bonus Annuity Comparison Chart:

The chart below highlights the key differences:

Case Example

Susan, age 65, is considering three annuities with a $300,000 deposit:

• Fixed Annuity: Offers 5% for 5 years → about $382,000 after 5 years, but limited long-term growth.
• Standard Bonus FIA: Adds a 10% rider bonus but real cash value grows slower, leaving Susan uncertain about actual withdrawals.
• 40% Bonus Annuity: Guarantees $420,000 after 10 years—with potential for more via index credits. This makes it the most compelling option for long-term income planning.

Which Option Is Right for You?

Every retiree’s needs are different. If you want maximum short-term liquidity, a traditional fixed annuity may be best. If you value upfront rider bonuses, a standard bonus FIA could work. But if you’re looking for long-term certainty combined with meaningful growth potential, the 40% Bonus Annuity is hard to beat.  Use our Bonus Annuity Comparison to find which works best for your situation.

To dive deeper into all annuity types, visit our Annuities Hub for guides, strategies, and product comparisons.

Why Work With Diversified Insurance Brokers?

Since 1980, Diversified Insurance Brokers has helped retirees secure safer, smarter retirement income strategies. With access to 75+ top-rated carriers, we shop the entire marketplace to help you find the highest-paying annuities—whether fixed, indexed, or bonus products. See why clients across the country trust us.

✅ Current Bonus Annuity Offers (as of Aug 2025)

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.