Guaranteed Income

A Single Premium Immediate Annuity

You worked, you played, and you raised a family. Saving money was hard work, but you did it. Now is the time to make sure all of your hard work pays you back. A Single Premium Immediate Annuity from State Farm® guarantees a monthly income for the rest of your life. For over eighty years we've helped our customers protect their financial futures. Take the guesswork out of retirement income and let us do the hard work for you.

  • “Single premium” means you fund the annuity with a lump sum payment
  • “Immediate” means you start receiving income one month after policy issue

Did you know?
Many customers who have purchased a Single Premium Whole Life policy or another Limited Pay policy from State Farm® have also expressed interest in this type of annuity.

You might also be interested in this annuity if you want to convert a tax-qualified retirement account, a matured CD, or an inheritance into an immediate stream of income.

Why Buy a Single Premium Immediate Annuity:

  • You receive a guaranteed monthly stream of income, or you can choose quarterly, semi-annual, or annual payments
  • You pay no fees beyond the initial one-time policy fee
  • You can choose the income payment option that best suits your needs

Premiums

  • Minimum single premium: $25,000
  • Maximum single premium: $1,000,000

Higher premiums may be allowed with State Farm approval. Contact your State Farm agent for more information.

Income Payment Options

This Single Premium Immediate Annuity offers the following income payment options:

  • Life Annuity: Income is guaranteed for your lifetime
  • Life Annuity with Choice of Certain Period: Income is guaranteed for the greater of the certain period or your lifetime. Certain periods from 5 through 30 years are available
  • Life Annuity with Cash Refund: Income is guaranteed for your lifetime. Upon your death, if the total income received is less than your initial purchase payment, any difference is paid in one sum to your beneficiary
  • Joint & Last Survivor Life Annuity: Income is guaranteed for the greater of your lifetime or your joint annuitant’s lifetime
  • Joint & Last Survivor Life Annuity 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 available

Income payment options may vary depending on the age and gender of the annuitant, single premium paid, income option chosen, state of issue, and policy provisions.

The Guaranteed Income Annuity cannot be surrendered; however, income options that include a certain period may allow you to accelerate all or part of your payments. Talk to your State Farm agent for details. (Acceleration of payments is not available in NJ, PA, TX, and WA.)

Tax Advantages

Income payments are not taxed until received and may not be fully taxable.

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

  • Business Retirement Plans
  • Traditional IRAs
  • Roth IRAs

Charges

  • There is a one-time $175 policy fee

Acceleration of Payments

For Guaranteed Income "immediate annuities", an Acceleration of Payments Provision is available. This provision allows remaining certain period income payments to be accelerated after the first policy year. If the unexpected happens (home repair, medical bills, or family emergency), it's nice to know you have options. Minimums apply, and partial accelerations are limited to one per policy year and must be at least $5,000. Annuity income payments will be reduced. Acceleration of Payments is not available in NJ, PA, TX, and WA. Contact your local State Farm agent for specific details and restrictions.


Policy Series Wording Information

This is a general description of coverage. A complete statement of coverage is found only in the policy.

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)
Bloomington, IL


  • View additional disclosures

    Contact your State Farm agent for details on coverage, costs, and restrictions.

    State Farm agents do not provide tax, legal, or investment advice. Please consult your tax, legal, or investment advisor regarding your specific circumstances.

    Guarantees are based on the claims-paying ability of the issuing State Farm Life Insurance company.

    Withdrawals made prior to age 59 1/2 are subject to a 10 percent federal income tax penalty.

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

    Insurance policies and/or associated riders and features may not be available in all states, and policy terms and conditions may vary by state.

    Single Premium Immediate Life Annuity policy series 03041, 03091, and A03041.

    Single Premium Immediate Life Annuity with Choice of Certain Period policy series 03042, 03092, and A03042.

    Single Premium Immediate Life Annuity with Cash Refund policy series 03043, 03093, and A03043.

    Single Premium Immediate Joint & Last Survivor Life Annuity policy series 03044, 03094, and A03044.

    Single Premium Immediate Joint & Last Survivor Life Annuity with Choice of Certain Period policy series 03045, 03095, and A03045.

    Single Premium Immediate Life Annuity with Choice of Certain Period policy series 03046 and A03046.

Not FDIC Insured
  • No Bank Guarantee
  • May Lose Value

IL-98.11

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