Bonus Flexible Annuity review

It depends on what you're comparing it to. As a low-cost, flexible-premium fixed annuity with an A+ rated carrier, it's a reasonably good annuity — the fee structure and liquidity terms are better than a lot of products in this category. As a "bonus" annuity in the sense the name implies, it's a little misleading: there's no lump-sum bonus credited to your account, just a temporary rate boost that fades after 12 months. If you go in understanding that distinction, it's a fine option. If you're shopping on the headline rate alone, you should ask what the rate looks like starting in year two before you commit.

The main draw is simplicity and flexibility. You can start with $5,000, add more money whenever you want without restarting the surrender clock, and never pay a base contract fee or rider fee because there are no riders to attach one to. The secondary draw is liquidity — 10% of the account is available every year from day one, with no market value adjustment reducing what you get back. For someone who wants a plain fixed annuity to hold conservative money and doesn't need income riders or index-linked upside, that combination is appealing.

I think this product is best for a conservative saver, likely closer to or in retirement, who wants a simple interest-bearing contract rather than an indexed or rider-heavy design, and who values the ability to keep contributing over several years rather than funding the whole thing up front. It's a poor match for anyone who wants guaranteed lifetime income (there's no income rider at all), anyone chasing the highest sustainable yield (the true ongoing rate is meaningfully lower than the advertised one), or anyone in New York, where United of Omaha isn't licensed to sell it.

You're buying a traditional declared-rate fixed annuity, not a locked multi-year guaranteed rate and not an indexed product. The carrier sets a current interest rate on your money, and that rate can move over time within the bounds of the contract's guaranteed minimum. What makes this one worth reading the fine print on is the word "bonus" in its name: it doesn't add extra principal to your account the way some FIA premium bonuses do. It's an interest-rate enhancement — an extra 1% credited to the rate during the first 12 months only. Once that year is up, the rate drops by that same 1%, and what you earn from there depends on the carrier's ongoing declared rate.

Per Wink data as of 4/6/2026, the current headline rates were 5.05% for accounts under $50,000 and 5.20% for accounts at $50,000 or more. Both of those figures already include the first-year 1% rate bonus — they are not on top of it. Starting in policy year two, the rate is reduced by that same 1%, which puts the underlying ongoing rate closer to 4.05% (low band) and 4.20% (high band) at this snapshot in time, before any future rate changes the carrier makes. This is a common structure in the industry: a strong first-year number that gets people's attention, followed by a lower rate that applies for the rest of the surrender period, subject to whatever the carrier declares going forward. The one hard floor underneath all of that is the minimum guaranteed surrender value — 87.5% of premiums accumulated at 1% to 3%, depending on the state and the year of issue.

The second notable structural feature is the $50,000 rate breakpoint, which is permanent rather than temporary. Balances at or above $50,000 get a 0.15% add-on to the declared rate that stays in place for the life of the contract, not just the first year. It's a modest edge, but unlike the first-year bonus, it doesn't expire. Combined with the flexible-premium design — you can keep adding money to the same contract without restarting the surrender schedule on prior deposits — this means someone who starts below $50,000 and grows the account over time through additional contributions can eventually cross into the better rate band on new dollars.

This is an 8-year commitment, with a surrender schedule that starts at 8% in both year one and year two before stepping down to 2% by year eight. There's no market value adjustment on this product, which is a real plus — your surrender charge is a flat percentage, not one that can be made worse by rising interest rates the way an MVA contract can. Within that structure, 10% of the accumulated account value is available every year with no withdrawal charge or rate adjustment, starting immediately rather than after a waiting period. Annuitizing the contract after the second year — converting it to a stream of payments — also bypasses the surrender charge entirely. Withdrawals taken before age 59½ can still trigger the standard 10% federal early-withdrawal tax penalty, which is a tax rule, not a feature of this contract.

There's no base contract fee and no rider fee, mainly because there's no rider to attach one to — no income rider, no chronic illness enhancement, nothing beyond a standard death benefit. That keeps the product simple, but it also means it can't do double duty as a retirement-income vehicle the way a built-in income annuity can. The real tradeoff isn't a line-item fee; it's opportunity cost. The headline rate looks competitive, but a meaningful chunk of it — the 1% first-year bonus — isn't available for the other seven years of the contract. Anyone comparing this against a true multi-year guaranteed-rate product should compare the post-year-one rate, not the headline number, since that's what you'll actually be earning for most of the surrender period.

Legal Entity: United of Omaha Life Insurance Company

Parent: Mutual of Omaha

A.M. Best Rating: A+