Help secure your retirement
Annuity basics
How deferred annuities work
Accumulation phase
During this phase, the customer pays either a lump sum or makes periodic payments to the insurance company. These payments accumulate at interest over a period of time, similar to a savings account. However, unlike most other savings vehicles, interest is earned on a federally income tax-deferred basis. This tax advantage is one reason annuities have become important retirement planning tools (Although income tax-deferred, taxes will become due when funds are withdrawn).Distribution phase (income payout)
Income payments can be made monthly, quarterly, semi-annually, or annually. The amount of these income payments is based upon the accumulation value when payments begin, the age and gender of the annuitant,* and the income option selected. If the annuitant selects one of the life income payout options, guaranteed payments will continue for the rest of his or her life. * Unisex rating applies to certain tax-qualified plans and policies issued in Montana. Sounds simple, right? And yet there's a lot of confusion and misinformation out there when it comes to annuities. At State Farm® we're committed to providing you with the answers you need to make confident, well-informed choices when it comes to your future.Learn more about annuities
Our annuities at a glance
State Farm offers two types of annuities. Learn more about which one best fits your personal retirement program.Future Income Plus | Guaranteed Income | |
---|---|---|
Life stage | Closer to retirement with a sizable amount already saved, seeking a guaranteed rate of return and would like the option to annuitize it in the future. | About to retire or already retired and you want a steady, guaranteed income right away |
Premium mode | A lump-sum payment | A lump-sum payment |
Minimum initial premium amount | Age 0-99: $25,000 | Age 21-90: $25,000 |
Interest rate guarantee period | Interest rate guarantee periods can vary based on new or renewal business and by state. Contact your State Farm agent for specifics. | N/A |
Guaranteed minimum interest rate | At least 1% for duration of policy | N/A |
For more details on coverage, costs, and restrictions, or to apply for coverage, contact your local State Farm agent.
Insurance policies and/or associated riders and features may not be available in all states, and policy terms and conditions may vary by state. Neither State Farm® nor its agents provide tax or legal advice. Securities are not FDIC insured, are not bank guaranteed and are subject to investment risk, including possible loss of principal.Issued by:
State Farm Life Insurance Company (Not licensed in MA, NY, or WI)
State Farm Life and Accident Assurance Company (Licensed in NY and WI)
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