Compare bonus and no-bonus annuities

A bonus may credit account value, an income base or indexed interest. Check where it lands, its vesting and its tradeoffs.

1. 1.

   Paste this case. In ChatGPT Work, use @ to pick Annuities Genius.

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   Using Annuities Genius: I'm an independent agent paid by commission. My client is 62 in Illinois with $250,000 from an IRA rollover. He saw an ad for an annuity with a big bonus. Show me 2 bonus FIAs and 1 no-bonus FIA for him, and tell me what the bonus really costs him: vesting, surrender years, fees, caps or participation. Look up how each one is sold. Which one would you show him first, and why? I decide.

   Select the text and copy it.

2. 2.

   Show what vests each year and what is recaptured after surrender, withdrawal or death.

   A surrender ends the contract. Surrender charges, a market value adjustment (MVA) and bonus recapture can reduce what the client receives.

3. 3.

   Check that you can sell each one, then pick the one to show first.

   The product details show how each one is sold. They do not show your commission: ask your agency.

4. 4.

   In the same chat, set the least bonus and the longest surrender you accept.

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   Only show bonus annuities with a bonus of at least 10% and a surrender of 7 years or less.

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   The list should get much shorter.

5. 5.

   Request carrier-authorized illustrations for both products (up to 20 credits each).

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   Use only carrier-produced illustrations or carrier-authorized software under carrier control. Run both products with their full current crediting formulas. Show guaranteed account and cash surrender values beside every authorized non-guaranteed scenario. Include bonus recapture, surrender charges and any MVA.

   Select the text and copy it.

   If a product cannot be illustrated, your AI may stop. Ask: "Illustrate the next bonus annuity instead."

6. 6.

   Compare account value and carrier-authorized cash surrender value each year. Include recapture, surrender charges and any market value adjustment (MVA).

   Use the full current crediting formula. Do not project today's cap or participation rate for 10 years. Never call a crossover an expected return.