What Is Bonus Annuities? 
Bonus annuities are annuities that pay a bonus to the contract owner generally as an incentive to start the annuity . This bonus is generally paid as bonus to the interest rate in the first year of the annuity . These benefits can greatly improve yield on the cash in the annuity . Some care should be taken when considering these annuities as they often come with recapture charges if the owner cashes in the annuity within a few years from opening it -LRB- i.e. the bonus will be forfeited -RRB- . 