Secure Your Retirement
Investing in a State Farm® Annuity is a great way to grow your money now and ensure a steady flow of income in the future.
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Investors are on a seemingly endless quest for a safe haven for their retirement dollars. Selecting the best investment depends on your financial goals and market conditions. Fixed annuities are low-risk investments that can help you reach those goals.
How Deferred Annuities Work
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have become important retirement planning tools (Although income tax-deferred, taxes will become due when funds are withdrawn).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 several types of annuities. Learn more about which one best fits your personal retirement program.
|Future Wealth Builder1||Future Income Plus2||Guaranteed Income|
|Life stage||Several years from retirement and you want to save for the future||Closer to retirement with a sizable amount already saved||About to retire or already retired and you want a steady, guaranteed income right away|
|Premium mode||A lump-sum payment or periodic payments||A lump-sum payment||A lump-sum payment|
|Minimum initial premium amount||
Age 0-65: $10,000
Age 66-90: $25,000
|Age 0-99: $25,000||Age 21-90: $25,000|
|Interest rate guarantee period||1 year and can adjust annually||
Can be locked in for 3, 5, 7, or 10 years
|Guaranteed minimum interest rate||At least 1% for duration of policy||At least 1% for duration of policy||N/A|
|Annual fees and expenses||$25 for account values less than $10,000 ($50 maximum)||None||$175 (one-time fee)|
This is a general description of coverage. A complete statement of coverage is found only in the policy. For more details on coverage, costs, restrictions, and renewability 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.
1 This product is currently not available.
2 This product is currently not available in New York and California.
3 Interest rate guarantee periods available can based on new or renewal business and by the state. Please see you State Farm agent for specifics.
Not FDIC Insured
- No Bank Guarantee
- May Lose Value
State Farm Life Insurance Company (Not licensed in MA, NY, or WI)
State Farm Life and Accident Assurance Company (Licensed in NY and WI)