Like other fixed indexed annuities, PrimeStart Bonus 10 does not directly invest your funds in the stock market. Instead, the insurance carrier credits interest based on the performance of selected market indexes—subject to caps, spreads, or participation rates—while guaranteeing that negative index performance will not reduce your principal. If an index declines during a crediting term, your contract receives a 0% credit for that period rather than a loss. Gains that are credited become locked in and cannot be taken away due to future downturns. If you would like a refresher on how indexed annuities structure these protections, review our full explanation of how a fixed indexed annuity works before evaluating specific product mechanics.

What immediately separates PrimeStart Bonus 10 from many competitors is its 10% premium bonus, applied to premium payments made within the first 60 days of the contract. This bonus increases the accumulation value at issue, giving your retirement savings a measurable head start. When compounded over time—and especially when paired with tax-deferred growth—the long-term impact of that early boost can be meaningful. For clients evaluating multiple bonus annuities side-by-side, we often model how bonus percentages, cap rates, and surrender durations interact over 5-, 7-, and 10-year periods. You can also compare competitive offerings by visiting our Current Bonus Annuity Rates page.

In addition to the bonus, PrimeStart introduces a distinctive Lowest Starting Index Value feature. Rather than locking in the index value strictly on day one, the contract calculates performance from the lowest daily index value during the first 90 days. This structure helps mitigate poor short-term timing and can create a stronger baseline for measuring gains. For investors concerned about entering the market at a temporary high, this design can provide additional peace of mind. The contract also includes a Flex-Lock Index Account, which allows policyholders to lock index rates at contract issue and maintain those rates for the full surrender period—creating predictability and reducing future rate uncertainty.

The index menu within PrimeStart Bonus 10 is diversified and performance-oriented. Available options may include the S&P 500® Index (excluding dividends), Goldman Sachs Canopy Index, First Trust Capital Strength Barclays 10% Index, and Franklin SG Select Index. Each incorporates unique volatility management or allocation strategies. Because indexed annuities rely on structured crediting formulas rather than direct equity ownership, understanding caps, spreads, and participation rates is essential. If you want to explore how these crediting approaches differ across carriers, review our breakdown of index annuity crediting methods.

Liquidity is another key consideration. After the first contract year, policyholders may withdraw up to 10% of the contract value annually without surrender penalties, subject to contract terms. Nursing Home and Terminal Illness Waivers provide additional flexibility if qualifying health events occur. For a complete understanding of declining surrender schedules and how they apply over time, see our explanation of annuity surrender charges. Knowing how liquidity provisions interact with long-term planning is critical before making any commitment.

Like all fixed indexed annuities, PrimeStart Bonus 10 benefits from tax-deferred growth. Interest compounds without annual taxation, potentially increasing long-term accumulation efficiency compared to taxable accounts. When distributions begin, taxation follows IRS guidelines based on qualified or non-qualified status. Coordinating annuity income with Social Security and other retirement income sources can significantly improve tax efficiency. For more clarity, review our guide on how annuities are taxed.

At death, beneficiaries typically receive the full accumulation value without surrender charges, allowing for efficient wealth transfer. This makes the contract not only an accumulation vehicle but also a probate-avoidance planning tool. If you are still evaluating whether indexed annuities align with your retirement philosophy, our article on whether annuities are a good investment in retirement provides balanced perspective.