The Truth About That Annuity Bonus
Why you should never base your decision on the bonus.
If you have talked to an insurance agent about annuities, you have undoubtedly been shown at least one annuity with a bonus.
Typically, the insurance company offers to pay you a bonus on your annuity premium of somewhere between 5% and 20%. That means that if you buy an annuity with $100,000 and the insurance company gives you a 10% bonus, you immediately have $110,000 in your annuity.
How great is that? You get an immediate 10% boost on the money that is working for you.
Before you get too excited, there is much more to know about that bonus.
Example #1
In example #1, I looked at a company with both a bonus version and a non-bonus version of the same annuity.
Look at the Guarantees
Most people do not realize that the insurance company offering the annuity with a bonus probably offers the same annuity without the bonus. And comparing the two can be eye-opening.
The first thing to look at is the guaranteed returns. Look at the guaranteed values in years ten and fifteen.
I ran two proposals for a male age 70 living in Arizona purchasing a $100,000…
