Thursday, February 19, 2004
Recent client question. www.legacyannuities.com
I have seen Insurance Companies advertise bonus rates.How do they work?
A Bonus Rate is the "extra" or "additional" interest paid during the first year. (the initial guarantee period) The term "Bonus Rate" also means that extra interest paid as a pure bonus with no vesting requirements to earn it... a true bonus. Bonus rates are fine but always look at the "Yield to surrender" when comparing different annuity options.
Thanks,
Joe
www.legacyannuities.com
I have seen Insurance Companies advertise bonus rates.How do they work?
A Bonus Rate is the "extra" or "additional" interest paid during the first year. (the initial guarantee period) The term "Bonus Rate" also means that extra interest paid as a pure bonus with no vesting requirements to earn it... a true bonus. Bonus rates are fine but always look at the "Yield to surrender" when comparing different annuity options.
Thanks,
Joe
www.legacyannuities.com
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