A bonus fixed indexed annuity may offer an initial premium bonus, index-linked interest potential, and protection from direct market losses. In this example, a $100,000 contribution could show a $125,000 initial account value, while a stated 28.75% first-year yield depends on the contract’s definition, crediting method, caps, participation rates, and bonus provisions. Some contracts may also include a 4.50% fixed account option, 5% annual free withdrawals, and nursing-home, terminal-illness, or critical-illness benefits. Investors should review surrender schedules, fees, tax treatment, liquidity limits, carrier strength, and all guarantees with a qualified fiduciary before purchasing. Guarantees depend on the issuing insurer’s claims-paying ability.
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