At Diversified Insurance Brokers, we help retirees and pre-retirees compare fixed indexed annuities (FIAs) across the marketplace—especially when the goal is to capture the highest fixed indexed annuity (FIA) bonus rates available without getting trapped by fine print. A bonus FIA can look incredibly appealing on day one because it adds an upfront credit to your initial premium, which can create a larger starting value than a traditional fixed annuity or a non-bonus FIA. In the right situation, that head start can improve long-term results, increase the base used for income planning, or help offset moving costs when you’re rolling money from an IRA, an old 401(k), or an existing annuity.

But “highest bonus” is not the same thing as “best overall.” Bonus FIAs often come with trade-offs—sometimes subtle, sometimes significant—such as longer surrender schedules, lower caps or participation rates, different rider charges, or vesting rules that change how much of the bonus you actually keep if you exit early. That’s why we approach bonus FIAs like a full contract review, not a headline comparison. The bonus percentage matters, but it is only one part of a bigger picture that includes liquidity, crediting strategy strength, renewal flexibility, and how the product treats withdrawals over time.

If you’re early in the research process, it may help to start broad and then narrow. Many shoppers begin on our highest guaranteed annuity rates page to compare fixed-rate growth against indexed alternatives. Others prefer to get oriented first with current annuity rates and then decide if a bonus structure is worth the extra complexity. Either way, the goal is the same: match the product design to your timeline and keep the contract working in your favor instead of against you.

How Bonus FIAs Work (And Why the Details Matter)

A bonus FIA is typically a fixed indexed annuity that credits an upfront percentage to your premium at issue. For example, a $100,000 deposit with a 10% bonus might show an additional $10,000 of value at the start of the contract. That sounds straightforward, but the definition of “value” is where most confusion begins. Some contracts apply the bonus to the accumulation value (the value used for surrender and withdrawals). Others apply the bonus to a separate benefit base used only for calculating lifetime income—meaning you may see a larger number on paper, but it might not be available as cash value.

This distinction is not “good” or “bad” by itself; it simply needs to match your objective. If your priority is protected accumulation with the flexibility to reposition later, a bonus that impacts accumulation value (or a product with strong surrender value mechanics) can be more meaningful. If your priority is future income planning, then a bonus that boosts the income base might be valuable—especially when paired with rider terms you actually plan to use. The important point is that the same bonus percentage can behave very differently across contracts, so the comparison has to be structure-based, not headline-based.

It also helps to understand what a bonus is designed to do from the carrier’s perspective. Insurance companies don’t offer bonuses “for free.” The value is usually funded through some combination of surrender terms, index-crediting levers (caps, spreads, participation rates), rider pricing, or renewal flexibility. In other words, you’re being offered an incentive up front, and you “pay for it” somewhere else in the design. A great bonus FIA is one where that trade-off is reasonable for your timeline and goals. A poor bonus FIA is one where the trade-off quietly overwhelms the benefit over time.

Who Bonus FIAs Tend To Fit Best

Bonus FIAs generally fit people who want principal protection, want a meaningful day-one jump in value, and can commit to the carrier’s surrender period without needing large early withdrawals. This often includes pre-retirees consolidating retirement assets, households repositioning a portion of their portfolio away from market risk, or individuals exchanging out of an older annuity that no longer fits their needs. In those cases, the bonus can help soften the transition—especially when the timeline to retirement income is measured in years, not months.

Bonus FIAs can also make sense when you want to preserve flexibility but still like the idea of index-linked interest crediting. Some clients use a bonus FIA as a “protected accumulation phase” strategy and then reassess later whether they want to keep the contract, reposition to a new term, or shift toward an income-focused design. If you want a simpler, guaranteed-rate approach instead, that is often where comparing against guaranteed annuity rate options can clarify the decision quickly—because the more moving parts a contract has, the more important it is that the moving parts align with how you will actually use the policy.

Where bonus FIAs usually do not fit is when you expect significant liquidity needs early, you’re unsure about the surrender window, or you’re primarily shopping for the strongest long-run index terms (where a non-bonus FIA may offer a better crediting profile). That’s one reason many shoppers compare bonus designs side by side with current annuity rates and fixed-rate options. Sometimes the “best” solution is not the highest bonus, but the best overall balance between liquidity, crediting strength, and transparency.

✅ Current Bonus Annuity Offers (as of Feb 2026)

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 to Compare Bonus FIAs Without Getting Misled by the Headline Bonus

To compare bonus FIAs intelligently, start by treating the bonus as one data point—not the conclusion. The first question is always: what does the bonus apply to? If it applies to accumulation value, it can have a direct impact on the value you can potentially access (subject to surrender rules). If it applies to an income base, it may matter most when you’re pricing lifetime withdrawals later. Many consumers assume a bonus automatically increases “cash value,” but in practice, the contract language decides that, and the difference can be meaningful.

Second, confirm how the bonus vests. Some contracts credit the bonus immediately but effectively “hold it hostage” inside surrender charges if you exit early. Others use a vesting schedule that gradually makes the bonus yours over a set number of years. Neither approach is inherently wrong; the real issue is mismatch. A vesting schedule can be fine if your plan is to hold for the full surrender period anyway. But if you might need to reposition in year three or four, a vesting design could turn a great-looking bonus into a disappointment.

Third, review liquidity like you mean it. Many FIAs allow penalty-free withdrawals up to a certain percentage annually, often after the first policy year. That feature can be helpful, but it can also interact with the bonus in ways that surprise people. Some designs reduce the bonus or recapture unvested bonus amounts when withdrawals exceed the contract’s free amount. The practical takeaway is simple: if liquidity matters, the “best bonus” is the one that still behaves reasonably under the withdrawal pattern you expect to use.

Fourth, evaluate the crediting engine. A bonus doesn’t change the fact that an FIA’s performance depends on its crediting terms. Caps, participation rates, and spreads are the levers that control what portion of index movement becomes credited interest. A contract can show a large upfront bonus but have weaker long-run index terms than a non-bonus FIA. That’s why it often helps to compare bonus products against the broader landscape of current annuity rates and other designs—even if the bonus still ends up being the right choice.

Finally, make sure you understand what you’re optimizing for. If you are primarily trying to maximize guaranteed growth, you may find that the most straightforward route is a fixed-rate strategy—especially when you can compare what’s available on pages like highest guaranteed annuity rates. If you’re optimizing for protected upside, then an FIA can make sense, but the best-fit product is typically the one whose crediting terms, surrender window, and bonus structure all align.

Common Bonus FIA Trade-Offs to Watch (In Plain English)

Most bonus annuity “gotchas” aren’t really tricks—they’re simply contract mechanics people don’t notice until later. One of the most common is a longer surrender schedule. The carrier is paying value up front, so they usually want you to stay long enough for the economics to balance out. That can be a fine trade if you truly have a long time horizon. But if you’re choosing a bonus product and hoping to get out quickly, you are likely to be disappointed once the surrender grid is applied.

Another trade-off is crediting strength. A bonus can be paired with lower index caps or less favorable participation rates. Again, that may still work out, especially if the bonus is substantial and you plan to hold for the long run. But the correct comparison is “net value over time,” not “bonus on day one.” This is one reason we often recommend doing a simple side-by-side against other rate and design options on today’s annuity rates page.

Rider pricing is another area that deserves attention. Some bonus designs are tied to income riders, and riders can carry annual charges. If you want lifetime income, a rider may be a good fit. If you don’t want lifetime income, paying for a rider to access the headline bonus can be inefficient. The best bonus FIA is the one that matches the features you will actually use, not the one with the biggest number attached to a benefit you don’t plan to activate.

And yes—carrier quality matters. Annuities are guarantees backed by the insurer, so financial strength is part of any serious comparison. In the table above, you’ll notice links to carrier profiles like Athene, North American, Nationwide, and others. Those reviews are helpful when you want more context on an insurer before you choose a contract design that could be part of your retirement plan for years.

Where Bonus FIAs Often Fit in a Retirement Strategy

Many people use a bonus FIA to solve one of three common planning problems. The first is a “repositioning” problem: you want to move money from market risk into principal protection, but you still want some upside potential through index crediting. In that scenario, the bonus can help make the move feel less like a reset because it starts you ahead of where a non-bonus contract might begin.

The second is a “future income staging” problem: you’re not ready to turn on income today, but you want to build toward a future income plan. Some bonus structures are designed to enhance the base used for future withdrawals, which can be beneficial if you actually plan to use it later. The key is making sure the timeline matches the rider mechanics and the surrender schedule. A bonus doesn’t help if the contract structure forces a decision you’re not ready to make.

The third is a “comparison” problem: you’ve seen multiple products and you’re trying to understand how they truly stack up. In many cases, comparing a bonus FIA against guaranteed-rate alternatives clarifies things quickly. If what you really want is a clean, predictable outcome, you may find more comfort in a guaranteed-rate approach. That’s why pages like highest guaranteed annuity rates can be a helpful reference point—because they show what you can lock in without the moving parts of indexed crediting.

Bottom Line: Highest Bonus vs. Best Bonus

Bonus FIAs can be excellent tools when the contract is chosen for the right reason and held for the right timeline. But the highest bonus is not automatically the best fit. The best bonus FIA is the one where the bonus type, vesting, liquidity rules, surrender schedule, and crediting terms are all aligned with how you plan to use the annuity. If you focus on structure first and headline numbers second, bonus FIAs become far easier to evaluate—and far less likely to disappoint later.

If you want to broaden your comparison beyond bonuses alone, a practical next step is to review current annuity rates and compare how guaranteed-rate options stack up against indexed designs. That way, you’re choosing a contract based on outcomes that match your plan—not simply choosing the biggest number on day one.

Related Topics to Explore

• Best Fixed Indexed Annuities with Lifetime Income Riders
• Annuity Strategies for Early Retirees
• Roth Conversions Using a Bonus Annuity
• Best Short-Term MYGA Annuities