Future Income

A flexible premium Deferred Life Annuity

A financially secure retirement. That's an important goal for all of us. This Deferred Life Annuity can help you achieve that goal.

Minimum Premium

How Future Income works

This flexible premium Deferred Life Annuity allows you to accumulate money at interest until some future date. Then, when you retire, you can take the accumulation value in one sum or elect an income payment option.

Income payment options

• Life Income: income is guaranteed for your lifetime.
• Life Income with 10 Years Certain:  Income is guaranteed for the greater of 10 years or your lifetime.
• Joint & Last Survivor Life Income: Income is guaranteed for the greater of your lifetime or your joint annuitant's lifetime.

Contact your State Farm® agent for details on additional income options that may be available to you.

How interest is applied

Premiums earn interest at the current interest rate that the Company has established. Interest is credited on premiums at the rate in effect when the premium is received by State Farm, and will be applied to that premium for one year. The current rate is guaranteed to be at least 3% and is guaranteed for at least one year. At the end of the first and subsequent guarantee periods, a new current interest rate and guarantee period of at least one year apply.

Tax advantages of Future Income
Interest earned on the Deferred Life Annuity accumulation value is generally federal income tax deferred. This means it is not subject to federal income tax until it is received. This allows the annuity accumulation value to grow larger than would be possible if interest were taxed as earned. It is subject to tax when received. See your tax advisor for individual tax advice.

Some annuities are used to fund a "Tax-Qualified" plan. These tax-qualified plans can include:

• Business Retirement Plans
• TSA/403(b) Plans
• Traditional IRAs
• Roth IRAs

Note: In a tax-qualified retirement plan, federal income tax deferral treatment is provided by the tax-qualified retirement plan. No additional tax deferral treatment is provided by an annuity. You should contact your attorney or tax advisor for more complete information.

Why buy State Farm's Future Income?

• Our Deferred Life Annuity is backed by the financial strength of State Farm Life Insurance Company or State Farm Life and Accident Assurance Company.
  
  
• No need to worry about how your premiums are invested.
  
  
• You have the flexibility on the amount of premium you pay as well as when you make the premium payment. Payment reminders are available. Make payments of $25 or more at any time as long as the minimum initial premium requirement is met.
  
  
• You can allow your accumulation value to keep growing and choose when you begin receiving monthly payments.
  • You can wait until you are age 95 (age 85 in PA; age 90 in NY)
  • You can wait until you are age 70½ (if in a tax-qualified plan other than a Roth IRA) to begin receiving payments.
    
    
• There are no up-front sales charges, policy fees, or state premium tax charges. All of your premiums earn interest from the date funds are received by the Company.
  
  
• Death benefit -- Keep in mind that the difference between the accumulation value and the premiums paid will generally be subject to federal income tax.
  
  
• In addition to taking the accumulation value as a lump sum, you will have several payment options, including guaranteed monthly income for your lifetime.
  
  
• You may access your accumulation value at any time. However, surrender charges may apply. Most withdrawals are subject to income tax and a 10% tax penalty if taken before age 59½. If used to fund a tax-qualified plan, certain plan withdraw restrictions may apply. Please see your tax advisor for more information.

Current surrender charge

Surrender charges decline to zero over time and are a percentage of accumulation value withdrawn.

Note: Surrender charges decrease the amount available.

Waiver of surrender charges

State Farm waives surrender charges for the following situations:

• After the first policy year, if withdrawals on a policy year basis are 10% or less of the accumulation value at the end of the prior policy year
  
  
• After the 10th policy year
  
  
• After the 5th policy year, if:
  • Annuity income payments are taken under a life income option, or
  • Withdrawal occurs on or after the policy anniversary when the annuitant is age 60

• After death of the annuitant if a death benefit is payable
  

Security, safety, a guaranteed income for as long as you live...that's an annuity the State Farm way.

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