Annuitisation Bonus

An annuitisation bonus refers to an additional amount added to the funds of an annuity contract when the annuitant decides to convert their accumulated investment into a series of periodic payments.

This bonus is usually a percentage increase on the value of the annuity account or the payments. It is offered by insurance companies as an incentive for policyholders to annuitise their contracts, rather than taking a lump sum withdrawal.

The bonus can be a significant benefit for retirees seeking a stable income stream, as it boosts the overall value of the annuity, resulting in higher regular payments.