Pick the State Farm^® Interest Advantage Program

Here's a simple idea. Take the fixed-rate earnings from your State Farm Future Income Flex variable annuity and shift them into professionally managed investment accounts that offer the potential for a higher return.

How? With a controlled, systematic approach that gradually shifts these assets into the subaccount of your choice -- giving you simple, convenient access to the investment potential of the stock and bond markets.

It's called the Interest Advantage Program, and it makes the complex process of reallocating your assets and managing your investments far easier and more convenient ...because it's automatic.

We call it the "advantage" program for good reason.

While you may not want to take big risks with your assets, choosing only low-return investments carries the risk that the value of your assets may not keep up with inflation. Without enough savings growth, you could fall short of realizing your future dreams.

The Interest Advantage Program enables you to explore opportunities in the stock and bond markets, without committing a large portion of your retirement savings all at once:

• The principal in your Fixed Account remains protected from market fluctuations (based on the claims-paying ability of the issuing State Farm life insurance company)
• An amount equal to your Fixed Account earnings is shifted gradually into underlying stock and bond investments each quarter. These periodic investments have the effect of "dollar-cost averaging" -- a strategy that helps reduce the risk of making investments only when unit prices are high.*
• You can choose from a variety of underlying subaccounts for your new investments.
• We supply professional investment management of your subaccounts to save you time and effort.  However, you will need to monitor the performance of the subaccounts to make sure they are meeting your expectations.

How does it work?

It's a simple idea. The interest earnings from your State Farm Future Income Flex variable annuity's Fixed Account are transferred quarterly into the professionally managed investment accounts (know as subaccounts) of your choice. The amount of each quarterly transfer is equal to the interest earned on your Fixed Account balance during the previous quarter. No fixed Account Principal is put at market risk, as only the amount of earned interest is moved into your subaccounts.

Is it right for you?

The Interest Advantage Program could be suitable for a wide range of individuals:

• First-time stock or bond investors
• Conservative investors who are cautious about broadening their investment mix
• Individuals who recognize there is no "perfect" time to make new investments
• Investors who seek greater diversification for their retirement savings
• Those who simply wish to explore new avenues for long-term growth potential

How to get started

To begin the program, you must have the minimum required balance of $2,500 in your Fixed Account. If this balance should fall below $500 by the end of any policy quarter, the transfer will not occur. Please see the prospectus for further details.

Find out if the Interest Advantage Program could work to your advantage. Contact your registered State Farm agent today.

*Dollar Cost averaging does not assure a profit and does not protect against loss in declining markets. Dollar cost averaging involves continuous investment in securities regardless of fluctuating prices. You should consider your financial ability to continue purchases through periods of low price levels.

State Farm Variable Products are available through prospectus by registered representatives of State Farm VP Management Corp., One State Farm Plaza, Bloomington, Illinois 61710, 1-888-702-2307.  Please read the prospectus and consider the investment objectives, risks, charges, expenses and other information it contains about State Farm Variable Products carefully before investing.

Investing in a variable annuity is generally suitable for long-term investing such as retirement savings. You should consider your financial situation before investing.

Investment return and principal values will fluctuate so that your account value, when redeemed, may be worth more or less than the premiums you paid.

AP2007/12/9606