When Does It Make Sense to Use a Bonus Annuity?
When Does It Make Sense to Use a Bonus Annuity?
When does it make sense to use a bonus annuity? The answer is more nuanced than the headline percentage suggests, and understanding the difference between a bonus annuity that genuinely improves your retirement outcome versus one that simply looks attractive on paper is the core skill required for this decision. A bonus annuity adds an upfront credit — often 5 percent to 20 percent or more of your premium — to the income base, the accumulation value, or both at contract issue. That additional credit can create a materially higher starting point for guaranteed lifetime income, strengthen a death benefit calculation, or provide psychological reassurance after a period of portfolio losses. None of those outcomes are trivial. But a bonus annuity is only better than a non-bonus alternative when the total structure — the crediting mechanics, the surrender schedule, the rider design, and the long-term income math — produces a genuinely stronger outcome for your specific timeline and objectives. A large bonus percentage attached to a restrictive structure, a shorter income runway, or compressed crediting potential may not outperform a simpler contract with no bonus at all over the same holding period.
At Diversified Insurance Brokers, our role is to model bonus and non-bonus structures side by side for each client’s specific situation — age, premium, intended income start date, liquidity needs, and overall retirement strategy — so that the decision is based on projected lifetime value rather than on which number looks larger at contract issue. We represent more than 100 top-rated carriers and evaluate products from the perspective of how they perform across a full retirement timeline, not just at inception. This page covers the mechanics of bonus annuities, the specific scenarios where they make the most sense, where they typically underperform alternatives, how to evaluate the long-term math, and the structural considerations that separate genuinely strong bonus contracts from those where the upfront credit is offset by tradeoffs buyers discover later.
Ensure you are receiving the absolute top rates
Current Fixed Annuity Rates
Compare today’s best fixed annuity rates from top carriers.
Current Bonus Annuity Rates
See which annuities offer the highest upfront bonus today.
Request an Annuity Quote
Submit our annuity request form to get personalized rate options.
Lifetime Income Calculator
Use our calculator to see how a bonus annuity could impact your guaranteed retirement income.
How a Bonus Annuity Actually Works
Understanding when a bonus annuity makes sense begins with understanding what the bonus actually does inside the contract. Most bonus annuities are fixed indexed annuities (FIAs) that credit an upfront percentage to some portion of the contract value at issue. The “where” the bonus lands — whether on the income benefit base, the accumulation value, or both — is the most important structural detail, because that determines what the bonus actually accomplishes for you and when you will be able to use it.
Bonus annuities that apply the credit to the income benefit base are designed specifically for buyers whose primary goal is maximizing future guaranteed lifetime income through a GLWB rider. The income base is the calculation engine that determines how much the rider will eventually pay you each year for life — it grows according to a contractual formula during the deferral period, and when you turn income on, you receive a percentage of that income base as an annual payout. An upfront credit that raises the income base by 10 or 15 percent creates a higher starting point for that calculation, which compounds into meaningfully higher future income payments. The tradeoff is that the income base is generally not accessible as a lump sum — it is a mathematical construct within the rider, not a cash value you can withdraw. Understanding this distinction is essential, and our resource on what an annuity income bonus is covers the mechanics in detail.
Bonus annuities that apply the credit to the accumulation value add the bonus directly to the contract value — the actual account balance that drives both future crediting and the surrender value of the contract. These designs create genuine day-one value in the account that can grow through index crediting during the deferral period. They tend to be rarer than income-base-only bonus designs, and the tradeoffs are similar: longer surrender periods, potentially compressed crediting mechanics, and bonus recapture provisions that can claw back part of the upfront credit if the contract is surrendered too early. Our resource on what a bonus annuity vesting schedule is covers how recapture provisions work and what the vesting timeline means in practical terms.
Some contracts apply the bonus to both — crediting to the accumulation value and to a separate income benefit base simultaneously. These designs can be powerful for buyers whose goals include both accumulation and income, but they typically carry the longest surrender periods and most complex structure. For deeper product-level evaluation, our resource on bonus annuity pros and cons covers the tradeoff structure comprehensively.
Bonus Annuity vs. Non-Bonus Annuity: Key Decision Factors
The most useful framework for deciding when a bonus annuity makes sense is a direct comparison of the structural differences between bonus and non-bonus designs. Bonus annuities are not universally superior — nor are non-bonus annuities. The right choice depends on how the specific structural differences align with the buyer’s timeline, income objectives, and liquidity needs.
Bonus Annuity vs. Non-Bonus Annuity: Structural Comparison
| Decision Factor | Bonus Annuity | Non-Bonus Annuity |
|---|---|---|
| Upfront Credit | 5–20%+ added to income base and/or account value at contract issue | No upfront credit; full premium earns from day one |
| Surrender Period | Typically 10–14 years; longer to offset bonus cost to carrier | Typically 5–10 years; shorter surrender period is common |
| Crediting Potential | May have lower caps or participation rates to offset bonus cost | Often higher caps or participation rates; no bonus cost to offset |
| Income Base Starting Point | Higher starting income base; stronger projected payouts for buyers near income start | Lower starting income base; depends more on deferral growth to build payout value |
| Best Fit | Income-focused buyers within 3–10 years of income start; post-loss recovery; 1035 exchange | Accumulation-focused; longer deferral periods; buyers prioritizing liquidity or flexibility |
| Recapture Provisions | Bonus recapture may apply if contract surrendered within vesting period | No bonus recapture; surrender charges only |
| Rider Fees | Income rider fees typically 0.75–1.5% annually on income base | Rider fees similar but may carry different base-rate structure |
This comparison framework illustrates why the bonus percentage alone is never sufficient to evaluate a bonus annuity. The structural tradeoffs — surrender period length, crediting mechanics, and recapture provisions — must be evaluated against the buyer’s specific timeline and objectives. A 12 percent bonus with an 14-year surrender period evaluated against a buyer’s actual needs may produce a weaker outcome than a non-bonus contract with stronger crediting potential and a shorter surrender period. Our resource on bonus annuity comparisons covers how to evaluate these tradeoffs across carriers. And for buyers wanting to see the current marketplace’s highest bonus offerings, our highest bonus FIA rates page tracks the current marketplace.
When a Bonus Annuity Makes the Most Sense
Several specific buyer scenarios make bonus annuities a genuinely strong strategic choice, where the upfront credit produces lasting value rather than simply providing a headline number. Understanding these scenarios helps frame the decision around circumstances rather than around product marketing.
The first and most common scenario is a buyer within three to ten years of their intended income start date who is using a GLWB rider. This is the scenario where the bonus annuity’s core structural advantage — a higher starting income base — translates most directly into stronger lifetime income. When income will begin relatively soon, there is less time for the income base to grow through the contractual roll-up rate during deferral. An upfront credit that immediately increases the income base compensates for the shorter deferral runway, producing projected lifetime income that can be meaningfully higher than what a non-bonus contract with the same premium would generate. A buyer planning to start income in five years benefits more directly from a large upfront income base boost than a buyer deferring for twenty years, because the roll-up rate has less time to compound. For buyers actively planning their income start date, our resource on best annuity for guaranteed income in retirement covers the broader income-planning framework within which this decision sits, and our resource on bonus annuity with lifetime income covers the specific combination of bonus credit and lifetime income rider design.
The second scenario is a buyer repositioning assets following a period of portfolio losses who wants to establish a guaranteed income foundation. After a significant market drawdown, some retirees face a version of the sequence-of-returns problem in reverse: their portfolio needs to recover before it can safely fund income, but they also need income soon. A bonus annuity can provide a form of reset by establishing a higher income base than the premium alone would create — not recovering the market losses directly, but creating a guaranteed income foundation that can fund essential retirement expenses while the remainder of the portfolio is left to recover over time. Our resource on how Social Security and annuities work together covers the broader income-coordination strategy that often accompanies this approach.
The third scenario is a 1035 exchange of an older annuity or life insurance contract into a new structure, where the bonus credit offsets surrender costs from the prior contract. Section 1035 of the Internal Revenue Code allows for tax-deferred exchanges of insurance and annuity contracts into newer contracts without triggering taxable income on the accumulated gains. When an existing annuity carries a surrender charge that would normally make repositioning expensive, a bonus annuity whose upfront credit equals or exceeds the surrender cost on the prior contract can effectively make the exchange economically neutral or positive. Our resource on how 1035 exchanges work in annuity planning covers the mechanics of this exchange process, including the tax-deferred treatment and the documentation required.
The fourth scenario is a buyer with a large premium — typically $200,000 or more — rolling over an IRA, 401(k), or pension lump sum into an annuity structure specifically designed to generate guaranteed lifetime income. At larger premium amounts, the absolute dollar value of a bonus credit becomes substantial. A 10 percent bonus on $500,000 creates $50,000 of additional income base at contract issue — a materially meaningful contribution to the income calculation that compounds through the deferral period and produces demonstrably higher annual income when the GLWB is activated. Our resource on how to get an annuity for retirement income covers the broader rollover and funding process for buyers in this category.
When a Bonus Annuity Does Not Make Sense
Being clear about when a bonus annuity is not the right choice is as important as identifying when it is. The most common scenario where a bonus annuity underperforms is a buyer with a long deferral period — 15 years or more before income is intended to begin. With a long runway, the non-bonus annuity’s potentially stronger crediting mechanics (higher caps, better participation rates) have more time to compound and may produce a higher income base than the bonus contract despite the lack of an upfront credit. Over 15 or 20 years of deferral, even modest differences in annual crediting can produce income base outcomes that exceed the benefit of the initial bonus. The math of compounding over time regularly defeats the math of a large upfront credit when the horizon is long enough.
The second scenario where a bonus annuity typically underperforms is a buyer whose primary goal is accumulation rather than income. Bonus annuities are optimized for income — their structural advantages are concentrated in the income benefit base, and their tradeoffs (longer surrender periods, potentially compressed crediting) affect accumulation value more than income value. Buyers who want strong account value growth to preserve flexibility, fund future reinvestment, or maintain access to a larger lump sum may find non-bonus alternatives with stronger crediting structures more appropriate. Our resource on highest fixed annuity rates and our resource on best MYGA annuity rates cover accumulation-focused alternatives that may outperform bonus annuities for buyers whose primary goal is maximum account growth rather than income optimization.
The third scenario is a buyer who anticipates needing liquidity beyond the contract’s free-withdrawal provisions during the surrender period. Most annuities — bonus and non-bonus alike — allow annual penalty-free withdrawals of 10 percent of the account value, typically starting in the second contract year. Withdrawals beyond that amount trigger surrender charges during the surrender period, and bonus annuities with recapture provisions may additionally reduce or reclaim part of the upfront bonus credit if excess withdrawals occur. A buyer who may need to access a substantial portion of the premium before the surrender period expires faces a particularly costly scenario with a bonus annuity — the combination of surrender charges and bonus recapture can produce value outcomes far below the premium invested. Understanding the free-withdrawal mechanics before purchase is essential; our resource on annuity free withdrawal rules covers how these provisions work in detail. For buyers who need a shorter time horizon with maximum flexibility, our resource on best MYGA annuity rates and our overview of annuity surrender charges cover shorter-duration alternatives.
The fourth scenario is a buyer whose retirement income strategy requires significant annual distributions from the annuity beyond the free-withdrawal provision. Some retirement budgets require more than 10 percent of the annuity’s value per year, particularly in early retirement years when other income sources may not yet be activated. Structuring this level of withdrawal from a bonus annuity with long surrender periods creates ongoing tension between the need for income and the structural penalties for exceeding withdrawal limits.
How to Evaluate Whether the Bonus Adds Real Long-Term Value
The practical test for whether a bonus annuity makes sense is a side-by-side projection comparing the bonus contract against the strongest non-bonus alternative at the same premium, income start date, and assumed interest crediting. This projection — run on an apples-to-apples basis — reveals whether the upfront credit produces meaningfully higher lifetime income, or whether the tradeoffs (compressed crediting, longer surrender period, rider fee structure) erode the advantage over the holding period.
The most important metric in this comparison is projected annual income at the intended start date, not the bonus percentage. A 15 percent bonus that produces $18,000 of annual guaranteed income is inferior to a 0 percent bonus contract that produces $22,000 of annual guaranteed income at the same income start date. This comparison seems obvious when stated directly, but in practice many buyers focus on bonus percentages rather than income projections — a habit that carriers marketing high-bonus products exploit. Our resource on what the best fixed indexed annuities for income are covers the income-comparison framework, and our resource on best fixed indexed annuities with lifetime income riders covers the broader rider landscape.
Secondary metrics that affect the comparison include the surrender value at various points during the holding period (relevant if circumstances change and access is needed), the income base value if the contract is held to full deferral before income activation, and the death benefit calculation (which affects estate planning decisions). Some buyers also evaluate Roth conversion strategies that interact with annuity designs, and our resource on Roth conversions using a bonus annuity covers that specific intersection. For buyers over age 70 interested in large upfront credit structures, our resource on bonus annuities with credits over 20 percent and our resource on 40 percent bonus annuities cover the current marketplace at the highest bonus tiers.
Vesting Schedules and Bonus Recapture: What Buyers Miss
Bonus recapture provisions are the most frequently overlooked structural element in bonus annuity contracts, and misunderstanding them is one of the most common sources of unpleasant surprises. A recapture provision allows the carrier to claw back all or a portion of the upfront bonus if the contract is surrendered, annuitized, or subjected to excess withdrawals before a specified vesting period has elapsed. The vesting period is typically shorter than the full surrender period but can still extend 7 to 10 years in many bonus designs.
The practical implication is that if a buyer’s circumstances change in the first several years of the contract — a health event that requires large distributions, a financial emergency, a change in estate plans — the recapture provision may reduce the surrender value below even the original premium amount. This is not hypothetical; it happens regularly when buyers have purchased bonus annuities with long surrender periods without fully understanding the recapture structure. The full mechanics are covered in our resource on what a bonus annuity vesting schedule is — an essential read before committing to any contract with recapture provisions.
Bonus Annuities Within a Broader Retirement Strategy
A bonus annuity is rarely a standalone retirement strategy — it is typically one component of a broader income and protection plan. The most effective deployment is as a dedicated income engine: a specific allocation of premium whose purpose is to generate guaranteed lifetime income that funds essential retirement expenses, leaving other assets in roles better suited to their structures. A bond ladder funds short-term liquidity needs. A diversified equity portfolio provides growth. A bonus annuity with a GLWB rider provides a reliable income floor that does not require market performance to deliver predictable monthly income.
This layered approach is particularly powerful for buyers who have experienced market volatility and want to separate the income function from the growth function in their retirement plan. Allocating the income function to a bonus annuity with guaranteed withdrawal benefits allows the growth portfolio to operate on a longer time horizon without being forced to sell during down markets to fund living expenses. Our resource on how a GLWB works covers the mechanics of this income guarantee, and our resource on best fixed indexed annuity covers the broader FIA landscape within which most bonus annuities sit.
For buyers comparing how a bonus annuity interacts with Social Security timing, required minimum distributions from IRAs, or the coordinated income planning that optimizes after-tax retirement cash flow, our resource on how Social Security and annuities work together covers those integration points. The most successful retirement income plans treat the annuity as the income floor layer, Social Security as the inflation-adjusted base, and the investment portfolio as the growth layer — each doing the job it was designed for.
Specific product reviews for buyers interested in the current market’s strongest bonus annuity designs include our deep dives on the Athene Ascent Pro 10 bonus annuity and the American Equity AssetShield 10 bonus annuity. For buyers interested in income-focused fixed indexed annuities regardless of bonus structure, our resource on fixed indexed annuities with income riders covers the broader product category. And for buyers conducting structured comparison work, our best upfront bonus annuity resource covers the current market’s top performers across multiple bonus tiers.
See Whether a Bonus Annuity Improves Your Retirement Income
We run side-by-side projections comparing bonus and non-bonus structures at your premium, age, and income start date — so the decision is based on projected lifetime value, not headline percentages.
Request Your Personalized Annuity ComparisonRelated Pages: Bonus Annuities and Income Planning
Continue researching bonus annuity mechanics, income rider design, and retirement income strategy.
Financial Essentials: Annuity Rates by Term
Compare the best multi-year guaranteed annuity rates by term length to match your retirement income timeline.
Talk With an Advisor Today
Choose how you’d like to connect—call or message us, then book a time that works for you.
Schedule here:
calendly.com/jason-dibcompanies/diversified-quotes
Licensed in all 50 states • Fiduciary, family-owned since 1980
FAQs: When Does It Make Sense to Use a Bonus Annuity?
What is a bonus annuity?
A bonus annuity is typically a fixed indexed annuity (FIA) that credits an upfront premium bonus — often 5 to 20 percent or more of the deposit — to the income benefit base, the accumulation value, or both at contract issue. The bonus creates a higher starting point for either future income calculations or the actual account balance, depending on the contract design. This upfront credit distinguishes bonus annuities from standard FIAs and MYGAs, which begin crediting interest on the original premium without an upfront addition.
Understanding where the bonus is applied within the contract structure is essential. Bonuses that apply only to the income benefit base improve future lifetime income projections but do not increase the actual surrender value of the contract. Bonuses that apply to the accumulation value increase the contract’s cash value and surrender value from day one. Some contracts apply the bonus to both — creating a higher income base and a higher account value simultaneously. The “where” determines what the bonus actually accomplishes and whether it aligns with the buyer’s goals.
Most bonus annuities also include a vesting schedule and potential recapture provisions. If the contract is surrendered or excess withdrawals are taken before a defined vesting period, some or all of the bonus may be returned to the carrier. Understanding the vesting mechanics before purchase is essential to evaluating the bonus’s true value.
When is a bonus annuity most useful?
Bonus annuities are most useful when a buyer is within three to ten years of their intended income start date and wants to maximize guaranteed lifetime income through a GLWB rider. In this scenario, the shorter deferral period means the income base has less time to grow through the contractual roll-up rate. An upfront bonus that immediately increases the income base compensates for the limited deferral runway, producing projected lifetime income that may be meaningfully higher than what a non-bonus contract would generate at the same income start date.
A second scenario where bonus annuities are particularly useful is repositioning assets after a period of significant market losses. The upfront credit can help re-establish a higher guaranteed income foundation than the post-loss premium alone would create, providing a floor of reliable income while the remainder of the portfolio has time to recover. This approach separates the income function from the growth function — the annuity handles income, the portfolio handles recovery — which can reduce the pressure on both.
A third strong scenario is a 1035 exchange of an older annuity or life insurance policy into a new structure, where a surrender charge on the prior contract would otherwise make repositioning expensive. A bonus annuity whose upfront credit equals or exceeds the surrender cost on the prior contract can make the exchange economically neutral or positive. This is one of the more strategically compelling uses of a bonus structure and requires careful matching of the outgoing surrender charge amount to the incoming bonus credit.
Are bonus annuities only for income riders?
No, though income optimization is the most common and compelling use case. Some bonus annuities apply the upfront credit to the accumulation value rather than or in addition to the income benefit base. In these designs, the bonus creates genuine day-one value in the contract’s cash account — a higher starting balance that earns through index crediting during the deferral period. Buyers whose primary goal is accumulation can benefit from this structure, though the tradeoffs in crediting mechanics and surrender period must still be evaluated against non-bonus accumulation alternatives.
Bonus designs can also enhance death benefit calculations in contracts where the death benefit is based on the accumulation value or a multiple thereof. For buyers who want to maximize what passes to beneficiaries if the contract is not fully used for income, a bonus applied to the accumulation value creates a higher death benefit basis at contract issue.
That said, the majority of bonus annuities sold today are designed with income optimization as the primary purpose. The income benefit base bonus is the most common structure, and the GLWB rider that converts that income base into lifetime payments is the most common activation mechanism. Buyers focused purely on accumulation or legacy may find non-bonus alternatives with stronger crediting structures or death benefit designs more appropriate.
What are the trade-offs of choosing a bonus annuity?
The most significant structural tradeoff in most bonus annuities is the surrender period length. To offset the cost of crediting an upfront bonus, carriers typically extend the surrender period — the window during which early withdrawal triggers a surrender charge — beyond what comparable non-bonus contracts carry. Many bonus annuities have surrender periods of 10 to 14 years, compared to 5 to 10 years for non-bonus FIAs and even shorter periods for MYGAs. This extended lockup is not a problem for buyers who intend to use the contract for income over a long deferral period, but it is a serious constraint for buyers who may need access to a substantial portion of their premium before the surrender period expires.
The second major tradeoff is crediting mechanics. Because the carrier has already paid the cost of an upfront bonus at contract issue, the carrier’s budget for interest crediting — caps, participation rates, spreads — may be more constrained than on non-bonus contracts. Over a long deferral period, even small differences in annual crediting potential can compound into meaningful differences in income base value and account value. This is why projections comparing bonus and non-bonus contracts over the same time horizon regularly show non-bonus contracts outperforming when the deferral period is long.
The third tradeoff is bonus recapture. Most bonus annuities include vesting schedules that allow the carrier to reclaim all or part of the upfront bonus if the contract is surrendered or subjected to excess withdrawals before the vesting period expires. This creates a form of double jeopardy — surrender charges on top of potential recapture — that can produce surrender values meaningfully below the original premium if circumstances change and early access becomes necessary.
Is a bigger bonus always better?
No — and this is the most important misconception to correct about bonus annuities. A larger headline bonus percentage does not automatically produce better retirement outcomes. The bonus percentage is one input into a multi-variable projection, and other structural factors frequently outweigh the bonus size in determining actual lifetime income or accumulation value.
A 20 percent bonus contract with compressed crediting mechanics, a 14-year surrender period, and high rider fees may produce lower projected lifetime income than a 0 percent bonus contract with strong crediting rates, a 10-year surrender period, and lower rider fees when both are projected to the same income start date. The carrier that markets the largest bonus is not necessarily offering the strongest retirement value — it may simply be packaging the highest upfront number attached to the most constrained long-term structure.
The practical test is always a side-by-side income projection using identical assumptions: same premium, same age, same income start date, same assumed crediting scenario. The contract that produces the highest projected annual income at the intended start date wins that comparison, regardless of bonus size. Our resource on the bonus annuity comparison framework covers how to run this evaluation properly.
Can I lose the bonus if I withdraw too much?
Yes — in many bonus annuity contracts, excess withdrawals during the vesting period can trigger a partial or full recapture of the upfront bonus. Most contracts define a free-withdrawal provision — typically 10 percent of the account value annually beginning in the second contract year — that can be taken without triggering surrender charges or recapture. Withdrawals beyond that free amount, or surrender of the contract before the vesting period expires, can subject the contract to both surrender charges and bonus recapture depending on how far into the vesting schedule the contract is at the time of withdrawal.
The specific recapture mechanics vary by carrier and contract. Some contracts recapture the full bonus if surrender occurs within a specific period. Others use a vesting schedule that reduces the recapture amount each year until the bonus is fully vested. Some contracts apply recapture only to surrenders and not to excess withdrawals (beyond the free amount); others apply recapture to both. Reading the specific recapture language in the contract illustration and the policy contract itself is essential before purchase.
Our resource on what a bonus annuity vesting schedule is covers the vesting mechanics in detail, including what triggers recapture and how to evaluate whether the recapture structure creates unacceptable risk for a specific buyer’s liquidity needs.
Are bonus annuities good for short-term goals?
Generally no. Bonus annuities are designed for buyers with long-term holding intentions — typically 10 years or more. The surrender periods, vesting schedules, and structural design of most bonus annuities assume that the buyer will hold the contract through the surrender period and eventually activate the income rider or allow the accumulation value to grow over a multi-year period. Short-term capital parking, emergency fund management, or any other objective that may require full access to the premium within a few years is incompatible with most bonus annuity designs.
For buyers with short-term goals, simpler alternatives are usually more appropriate. Multi-year guaranteed annuities (MYGAs) with 2, 3, or 5-year terms provide guaranteed interest rates and full access to the accumulated value at the end of the term without surrender penalties. These contracts do not offer upfront bonuses but also do not carry the long surrender periods or recapture provisions that make bonus annuities unsuitable for short-term use. Our resource on best MYGA annuity rates covers the current marketplace for short-to-medium term accumulation alternatives.
How do I know if a bonus annuity is right for me?
The most reliable way to evaluate whether a bonus annuity is right for your situation is a structured comparison that projects both a bonus and non-bonus alternative to your intended income start date, using identical assumptions for premium, age, deferral period, and assumed interest crediting. That comparison will show you which structure produces higher projected annual lifetime income — which is the primary metric for most buyers considering a bonus annuity for income purposes.
Beyond the income projection, evaluate four additional factors: your liquidity needs during the surrender period, whether the vesting schedule is compatible with any potential need to access funds early, the total rider fees and how they affect long-term income base growth, and the carrier’s financial strength rating. A strong projected income number attached to a carrier with weak financial strength ratings is not a strong annuity; the projection is only as reliable as the carrier’s ability to make those payments 20 or 30 years from now.
Working with an independent broker who can run these comparisons across multiple carriers simultaneously is the most efficient path to a well-informed decision. An independent advisor has no incentive to recommend a specific carrier’s bonus product over a competitor’s non-bonus product — the recommendation should be driven entirely by which structure produces the best outcome for the buyer’s specific situation. Our overview of the best annuity for guaranteed income in retirement covers the broader decision framework, and our simple vs. compound interest annuity resource covers the crediting mechanics that affect how bonus and non-bonus annuities grow differently over time.
About the Author:
Jason Stolz, CLTC, CRPC, DIA, CAA and Chief Underwriter at Diversified Insurance Brokers (NPN 20471358), is a senior insurance and retirement professional with more than 25 years 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, Group Health, 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, as well as his agency's featured coverage in Kiplinger— 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. Visitors who want to explore current annuity rates and compare options across multiple insurers can also use this annuity quote and comparison tool.
Browse More Resources: Return to our complete Fixed Indexed Annuity Products & Education guide — covering FIA products and education from top carriers.
Editorial Standards: Diversified Insurance Brokers maintains rigorous editorial standards to ensure accuracy, clarity, and independence in all content. Learn more about our editorial standards and commitment to transparency.
