A bonus annuity with lifetime income blends an upfront premium bonus with the security of guaranteed paychecks you can’t outlive. It’s designed for retirees and pre-retirees who want protection from market losses, tax-deferred growth, and reliable income. We compare options from 100+ highly rated carriers and tailor illustrations so you see exactly how your bonus, roll-up rates, and income guarantees work for your situation.

What Is a Bonus Annuity With Lifetime Income?

A bonus annuity is typically a fixed indexed annuity (FIA) that credits an upfront bonus—often between 5% and 20%—to your premium on day one. When paired with a lifetime income rider, you can later convert the contract into guaranteed paychecks (single or joint life). Your principal is protected from market losses, and growth is tax-deferred.

How It Works

• Fund the Contract: Use IRA/401(k) rollovers or non-qualified savings.
• Day-One Boost: A premium bonus increases your contract (or income) value immediately.
• Growth Without Market Losses: Choose index crediting strategies for upside potential with downside protection.
• Turn On Lifetime Income: Start guaranteed paychecks when you’re ready—now or in future years.

Who It’s Best For

• Pre-retirees (5–10 years out) who want an upfront boost and strong future income.
• Retirees seeking predictable paychecks to cover essential expenses.
• Conservative savers who want principal protection and tax-deferred growth.
• Couples who value joint lifetime income and beneficiary options.

Key Advantages

• Upfront Bonus: Immediate head start on day one.
• Guaranteed Income: Personal-pension paychecks for life (single or joint).
• Downside Protection: No losses due to market declines.
• Tax-Deferred Growth: Keep more working for you each year.
• Flexible Options: Liquidity features, enhanced income, and legacy choices vary by carrier.

Considerations

• Riders may have fees; understand how bonuses apply (cash vs. income value).
• Surrender schedules limit early access; use penalty-free withdrawal features wisely.
• Product availability and rates vary by state and carrier.

To see how a bonus annuity with lifetime income could fit your plan, review today’s rates and run a personalized illustration. You can also compare broader income-focused strategies here: Lifetime Income Annuities.