Future Income Plus

A Deferred Annuity with Single Premium

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

Minimum Premium

Contact your State Farm® agent for information regarding the availability of this product and for policy details on minimum premium requirements, coverage, costs, and restrictions.

How Future Income Plus works

This single premium deferred life annuity allows you to accumulate money with interest until a 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 Choice of Certain Period: Income is guaranteed for the greater of the certain period or your lifetime. Certain periods from 5 through 20 years are available.
• Joint & Last Survivor Life Income: Income is guaranteed for the greater of your lifetime or your joint annuitant's lifetime.
• Joint & Last Survivor Life Income with Choice of Certain Period: income is guaranteed for the greatest of your lifetime, the joint annuitant's lifetime or the certain period. Certain periods of 10, 15 or 20 years are available.

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

How interest is applied

Your single premium will earn interest at the current interest rate that the Company has established.

Guaranteed interest rate periods

• Interest rates are guaranteed for a period of time called the interest rate guarantee period.
• A higher interest rate may be available for a larger single premium.
• At the end of each guarantee period, you have a 30-day window to choose another guarantee period from those available at that time.
• A higher interest rate may be available for larger accumulation values at renewal.

Current Interest Rates

Please contact a State Farm agent for the current interest rates and the minimum guaranteed interest rate.

Tax advantages of Future Income Plus

Interest earned on the Future Income Plus 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 it is earned. 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
• 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 Plus?

• In all states except New York and Wisconsin, product guarantees are backed by the financial strength of State Farm Life Insurance Company. In New York and Wisconsin only, product guarantees are backed by the financial strength of State Farm Life and Accident Assurance Company.
  
  
• No need to worry about how your premiums are invested.
  
  
• 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 90 in NY) or 10 years from your issue age, whichever is longer.
  • 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 taxes. Your entire premium earns interest.
  
  
• 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 income options, including guaranteed monthly income for your lifetime.
  
  
• You may access your accumulation value at any time. However, surrender charges and a market value adjustment may apply. Most withdrawals are subject to income tax and a 10% tax penalty if taken before age 59½. The minimum withdrawal amount is $500. Up to 4 withdrawals per policy year are allowed. 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 and market value adjustments

State Farm waives surrender charges and the market value adjustment for the following situations:

• Withdrawal or surrender occurs during the 30-day window following the end of each guarantee period (limitations may apply for shorter periods)
  
  
• If withdrawals, on a policy year basis, are 10% or less of your single premium in the 1st year or 10% or less of the accumulation value at the end of the prior policy year in later years
  
  
• Death of the annuitant if a death benefit is payable
  

• Qualifying terminal illness (refer to policy for definition)
  
  
• Qualifying nursing home or hospital confinement (refer to policy for definition)
  
  
• A life income option is chosen after one year

Market Value Adjustment for withdrawal or surrender

• This adjustment will depend on how prevailing market interest rates have changed since the beginning of the guarantee period as well as the amount of time remaining in the guaranteed period. In general:
  • If prevailing interest rates have risen, the adjustment may decrease the amount available (subject to policy defined floor).
  • If prevailing interest rates have fallen, the adjustment may increase the amount available (subject to policy defined ceiling).
  • The longer the amount of time remaining in the guarantee period, the greater the adjustment will be.

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