Bonus annuities are annuities that pay a bonus to the contract owner generally as an incentive to start the annuity.
This bonus is generally paid as bonus to the interest rate in the first year of the annuity.
These benefits can greatly improve yield on the cash in the annuity.
Some care should be taken when considering these annuities as they often come with recapture charges if the owner cashes in the annuity within a few years from opening it (i.e. the bonus will be forfeited).
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This bonus is generally paid as bonus to the interest rate in the first year of the annuity.
These benefits can greatly improve yield on the cash in the annuity.
Some care should be taken when considering these annuities as they often come with recapture charges if the owner cashes in the annuity within a few years from opening it (i.e. the bonus will be forfeited).