Start Of Main Content

Help secure your retirement

An annuity from State Farm Life Insurance Company or State Farm Life and Accident Assurance (residents of NY and WI only) is a great way to grow your money now and ensure a steady flow of income in the future.

Find an agent near you

Or call 844-242-1899844-242-1899 for a quote.

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have become important retirement planning tools (Although income tax-deferred, taxes will become due when funds are withdrawn).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


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

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)
Home Office, Bloomington, Illinois

Each insurer is financially responsible for its own products.

IL - 159.7