Bonus Annuity Rates – October 2025
Looking to give your retirement a boost right from the start with current bonus annuity rates? Bonus annuities add an immediate percentage—often 10% or more—on top of your initial premium. That means if you invest $1,000,000, you could receive an extra $100,000 credited to your account on day one. This upfront value can enhance your long-term retirement income strategy.
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Why Choose a Bonus Annuity?
- Immediate Value: Get a percentage added to your account balance on day one.
- Income Rider Benefits: Many bonuses increase guaranteed lifetime income payouts.
- Stronger Accumulation: Boosts growth potential within your annuity contract.
- Flexible Uses: Enhances retirement income, legacy planning, or death benefits depending on product selection.
✅ Current Bonus Annuity Offers (as of October 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.
How Bonuses Can Impact Your Retirement
A bonus annuity provides an immediate head start on growth and can significantly increase guaranteed lifetime income values if paired with an income rider. For retirees seeking long-term stability, this upfront boost helps offset lower interest rate environments or provides peace of mind knowing your savings start ahead of the curve. Interested to see the current fixed annuity rates?
Example
If you deposit $500,000 into a 10-year annuity with a 20% bonus, you would see an additional $100,000 added on day one—providing $600,000 credited in your annuity contract. This enhanced balance can then compound and support greater retirement income potential.
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FAQs: Current Bonus Annuity Rates
What is a bonus annuity?
A bonus annuity is typically a fixed indexed annuity (sometimes a fixed annuity) that credits an upfront or vesting bonus—expressed as a percentage of your premium—to enhance accumulation value, an income base, or both. Principal is protected from market losses, and growth follows the contract’s fixed rate or index crediting method.
How do “current bonus annuity rates” work?
Two moving parts matter: (1) the bonus amount (e.g., 10%–25%+ credited day one or over time) and (2) the product’s ongoing rates—fixed rates or index terms (caps, participation rates, spreads). Offers change by carrier and state; evaluate the bonus and the long-term crediting terms together.
Does the bonus increase my cash value or only the income base?
It depends on the contract. Some bonuses boost the accumulation (cash) value; others apply mainly to the income rider base used to calculate lifetime withdrawals. Read the specification pages to confirm where the bonus lands and how it vests.
Is there a vesting schedule or bonus “recapture” if I exit early?
Often, yes. Many contracts vest the bonus gradually during the surrender period. If you surrender early, a portion of the bonus may be forfeited or subject to recapture. Know the vesting grid before you commit.
Do bigger bonuses usually mean lower caps or longer surrender terms?
There’s typically a trade-off. Higher bonuses can coincide with lower index caps/participation, rider fees, or longer surrender periods. Compare the total value—bonus, ongoing crediting, liquidity, and fees—rather than the bonus in isolation.
What liquidity do bonus annuities offer?
Most allow annual penalty-free withdrawals (commonly 5%–10% of value) after the first year. Many include nursing-home or terminal-illness waivers. Keep in mind: excess withdrawals may reduce or forfeit unvested bonus amounts.
Are bonus annuities available for IRAs and non-qualified funds?
Yes. You can fund with qualified dollars (e.g., IRA/401(k) rollovers) or non-qualified money. Tax treatment differs: IRA withdrawals are generally taxable; non-qualified contracts use LIFO taxation on gains unless annuitized with an exclusion ratio.
How are bonuses and earnings taxed?
Bonuses and credited interest grow tax-deferred inside the contract. Taxes apply when gains are withdrawn (ordinary income). Early distributions before 59½ may incur a 10% IRS penalty on taxable portions. Consult your tax advisor for your situation.
Will a 1035 exchange or rollover qualify for the bonus?
Usually, yes—exchanges (non-qualified) and rollovers/transfers (qualified) generally qualify for the same new-money bonus. Always verify state approval, minimum premium requirements, and whether the bonus applies to subsequent contributions.
Does the bonus improve lifetime income payouts?
If the bonus credits to the income base or increases the account value used for payout calculations, it can raise guaranteed lifetime withdrawals. Check the rider’s fee, deferral credits, and payout factors at your target age.
What should I look at beyond the headline bonus?
Carrier financial strength, surrender period length, vesting schedule, caps/participation/spreads, rider fees, free-withdrawal percentage, market value adjustment (MVA), and state availability. Balanced terms typically outperform “bonus-only” choices over time.
How do I compare today’s bonus annuity offers effectively?
Ask for a side-by-side that shows bonus type (cash vs. income base), vesting, 10-year value comparisons under conservative index assumptions, liquidity provisions, and lifetime income quotes at your intended start age. That makes “apples-to-apples” decisions much easier.
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