What is Bonus Vesting in an Annuity?

Did your insurance agent promise you a massive 10% or 15% upfront "Sign-On Bonus" just for buying an annuity? Before you celebrate, you need to understand the brutal reality of "Bonus Vesting!" 🛑💸

In this video, Shawn Plummer from The Annuity Expert explains exactly how premium bonuses actually work. While the insurance company credits the bonus to your account on Day 1 (and you immediately start earning interest on it!), that money isn't truly yours yet! Shawn breaks down how insurance carriers use "Vesting Schedules" to lock you into the contract. If you buy a 10-year annuity with a 10% bonus, you might only "vest" or legally earn 1% of that bonus each year. If you get fed up with the contract and cancel it in Year 6, the insurance company will claw back the unvested portion of your bonus!

👉 Read our complete, unbiased guide to how premium bonuses actually work right here:

https://www.annuityexpertadvice.com/types-of-annuities/features/premium-bonuses/

⏱️ Video Chapters:

0:00 - Intro: What is bonus vesting?

0:20 - The purpose of surrender charges (Protecting the carrier)

0:42 - The Trap: You don't actually own your bonus on Day 1!

1:03 - How prorated vesting schedules work over the life of the contract

1:20 - Example: Canceling a 10-year contract in Year 6

2:21 - Escaping a bad contract: Using a new bonus to offset old surrender charges

2:51 - Why you need an Independent Broker to avoid "garbage" annuities