Bonus or higher payout

A bonus can win or lose against a plain higher payout. Put two contracts side by side and check the dollars each pays a year.

1. 1.

   Type the premium. From Deferral snapshot, take each Withdrawal Percentage. Take the bonus from the row, the roll-up from Annuity info, Riders.

   Same single or joint and same start age on both. If income differs from Deferral snapshot, the illustration decides.

2. 2.

   Use the Income Base Bonus filter on the left. Row tags read like "20% Income Base Bonus". Compare the dollars, not the bonus.

   A bonus raises the base. If the rider fee is charged on the base, the fee grows too.

3. 3.

   Read the payout contract A needs to match B. Check vesting: GrantAI's replacement answer shows a $15,000 bonus vesting 10% a year.

   With the starting numbers, try A at 15% bonus, no roll-up, 4% payout: A pays $2,900 a year less.

4. 4.

   Pick simple or compound roll-up in the tool. The contract says which one applies.

   $100,000 at 8% for 10 whole years: $180,000 simple, $215,892 compound. Check whether the roll-up applies to the bonus, and whether starting income stops it.

   • Read the rider card