A bonus can be credited to different parts of an annuity and can carry restrictions. Before comparing a headline, identify the value receiving the credit, the conditions for keeping it and the consequences of leaving the contract.
The NAIC's 2022 deferred-annuity guide explains that access to a premium or interest bonus may be restricted and that some or all can be lost after a withdrawal. This guide discusses generic public contract features; it provides no current offer or carrier ranking.
Trace where the credit goes
| Question | Document to locate | Result to record |
|---|---|---|
| What receives the bonus? | Exact contract or rider definition | Cash-related value, income base or another measure |
| When is it credited? | Crediting provision | Applicable premium or interest event |
| When does it vest? | Vesting schedule | Conditions and dates for retention |
| What can remove it? | Withdrawal and termination provisions | Recapture or forfeiture conditions |
| What other restrictions apply? | Charge and benefit schedules | Separate surrender and rider effects |
| What can be received? | Current insurer illustration | Actual payment under the selected scenario |
The NAIC guide treats cash withdrawals and living-benefit payments separately. Ask the insurer which value a bonus changes and whether that value can be withdrawn. A larger payment calculation does not by itself establish the cash available on surrender.
Compare the whole contract
Request otherwise comparable illustrations with and without a bonus feature where actual alternatives are available. Examine guarantees, crediting limits, charges, surrender duration, income conditions and liquidity. An extra credit does not establish that the complete contract is better for a person's needs.
Use a hypothetical early withdrawal to ask what would be retained and what would be lost. Keep bonus recapture separate from surrender charges and tax treatment. A vesting anniversary is not automatically the end of every restriction.
Retain a plain-language explanation
Ask the insurer to identify the supporting policy sections and date of the illustration. Keep unresolved differences between a marketing summary and the contract visible.
This worksheet does not recommend a product or calculate an expected gain. Review the actual contract and circumstances with the appropriately qualified professionals before any separately authorized purchase or replacement.
Related reading
Start with the retirement planning overview. Continue with annuity delivery, free-look and replacement or browse the learning topics.
Browse federal benefits, retirement and insurance topics or read how we prepare and check our guides.
Sources
- NAIC: Buyer guide for deferred annuities (2022), checked November 4, 2026
- Investor.gov: Annuities, checked November 4, 2026
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