Some annuities reward investors by offering a bonus where the insurance company adds an average of 3% to 5% to your premium payments. For example, if you invest $10,000 in a bonus annuity the insurance company will add $300 to $500. The trade-off is that with a bonus annuity the surrender period is usually longer, eight to nine years in most cases.
Most bonus annuities allow you to withdraw 10% to 15% of your premium payments per year without a penalty.
There are some things to be aware of when investing in bonus annuities. If you have any questions, call an Income Products representative to make sure that you pick the best annuity to meet your needs.