Understanding Bonus Annuities—Are They Right for You?
A bonus annuity provides an upfront boost—typically a percentage of your initial premium added to the account on day one. While the idea of a 10%, 15%, or even 20% bonus sounds appealing, it’s important to understand what you’re trading off in exchange for the benefit.
What is a Bonus Annuity?
It’s a type of fixed indexed annuity that adds an immediate percentage bonus to your starting balance. These bonuses may enhance your income rider, increase death benefit values, or give you more accumulation power.
When They Work Best:
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You’re planning to hold the annuity for the full term
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You’re interested in guaranteed lifetime income
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You understand and are comfortable with the longer surrender periods and potential rider costs
Common Mistakes to Avoid:
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Choosing a bonus annuity only because of the upfront number
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Not understanding how the bonus applies (benefit base vs account value)
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Overlooking fees or liquidity restrictions
At Diversified Insurance Brokers, we walk you through every bonus annuity option, explaining how it fits into your broader financial strategy—not just how big the bonus looks.
Ensure you are receiving the absolute top rates
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Contact Us Today:
Ready to explore insurance and annuity options that offer guaranteed income, principal protection, disability, life insurance, Social Security and Medicare reviews, and long-term financial growth? Let the expert advisors at Diversified Insurance Brokers help you find the right strategy for your retirement goals.
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About the Author:
Jason Stolz, CLTC, CRPC, is a senior insurance and retirement professional with more than two decades of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient.
