Yes. Some deferred annuities offer a premium bonus or an interest bonus, but you may not be able to withdraw some or all of that bonus for a set period of time. You also could lose the bonus if you take some or all of the money out of your annuity within a set period of time.
The NAIC Buyer’s Guide explains that some annuities add a bonus when you buy the contract or when you add money. A premium bonus is usually a set percentage of the amount you put into the annuity. An interest bonus is usually a set percentage of the interest earned. These features can increase the annuity’s value, but they may come with limits on access to the money.
If you take money out during the surrender charge period, your annuity may also have a surrender or withdrawal charge. That charge is usually a percentage of the amount you withdraw, and the percentage often goes down over time until the surrender charge period ends. Some annuities may allow small withdrawals each year without that charge, but the contract and disclosure will explain the details.
Because annuities can differ, it’s important to read the contract and disclosure carefully and ask how long any bonus restrictions last, whether a withdrawal causes you to lose all or part of the bonus, and what other charges or adjustments may apply.
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Educational content provided by Jeffrey Scott McLeod, LUTC, National Insurance Producer License #558629. This is for informational purposes only and is not a recommendation to buy or sell any annuity. Guarantees are subject to the claims-paying ability of the issuing insurance company. Always consult your own advisor and read the full NAIC Buyer’s Guide. For residents of your state.
Source: © 2025 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC.
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