Bonus Annuities

Some annuities with surrender charges reward the investor by offering a bonus: the insurance company adds an average of 3% to 5% to each of your premium payments, which can make for an excellent head start. 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 versus the typical seven-year surrender) and each subsequent bonus payment... Read More

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