![]() Do not buy an annuity solely for the bonus. If an insurance company gives you a bonus, they will reduce other contract benefits (ex., Cap rates, lower renewal rates, etc) and extend the term. Index annuities are fixed annuities and generate fixed-income types of returns. ![]() ![]() Spreads, caps, or participation rates limit how much of the return you receive. Over time, the returns will average out to be in the 2-4% range. You could receive 15% for one year and 0% for two other years.
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