Which feature is NOT commonly associated with index annuities?

The correct choice is that premium bonuses are not commonly associated with index annuities. Index annuities, also known as fixed indexed annuities, primarily focus on providing consumers with a way to earn returns tied to a specific market index, while offering certain guarantees.

Premium bonuses are typically seen in some types of annuities as an incentive for the investor to purchase the product, often adding a percentage to the initial investment. However, index annuities usually do not emphasize premium bonuses as a defining feature; their appeal lies more in the potential for higher interest credits linked to market performance, safety from market losses, and guaranteed minimum returns.

Daily interest credits refer to how interest is calculated on the annuity's cash value, which can be advantageous for policyholders. Banding is a method related to the way interest is credited on an annuity based on specific index performance. Market value adjustments can occur in the event of withdrawals or surrenders and help to adjust the account value. These features are more integral to the operation and appeal of index annuities than premium bonuses, supporting the energetic and growth-oriented nature of these products.