Variable Deferred Annuity — Future Income Flex
A Variable Deferred Annuity is a contract with a life insurance company that offers you a way to accumulate savings and defer taxes until you begin withdrawing your money. The Variable Deferred Annuity through State Farm Life Insurance Company (Not licensed in MA, NY or WI) or State Farm Life and Accident Assurance Company (Licensed in NY and WI) is called Future Income Flex.
The contract is set up so that you contribute money (by paying premiums) during various intervals over a number of years. The premiums you pay go into your choice of underlying stock and bond investment funds (called subaccounts) and/or a fixed account. Your rate of return — and therefore the accumulated value of your premiums — depends on the performance of the underlying accounts you choose.
The earnings within a Variable Deferred Annuity are not subject to federal income tax until you withdraw your money.1 This allows the account value of the annuity to potentially grow larger than it would if the earnings were taxed each year. It also means you can spread your tax liability over the life of your income payments. Plus, you may move your money between the underlying investment funds without federal income tax implications.
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.
When you decide to annuitize the contract, you have the option of receiving proceeds payable in fixed or variable dollar amounts, or a combination of both. In addition to payout options, payments can be made in a lump-sum, monthly, quarterly, semi-annual, or annual payments.3
Please note effective September 27, 2008, State Farm® discontinued offering Variable Products. The State Farm Variable Products Processing area continues to service all existing Variable Deferred Annuity-Future Income Flex policies. This includes additional contributions* and transfer/rollovers up to $30,000 annually.
* Tax Qualified plans — under age 50 — $6,000. Age 50 and over — $7,000. Non Tax Qualified plans — $30,000. No contributions are allowed on Tax Sheltered Annuity/403b plans; current SEP plan contributions are limited to $58,000.
Before investing, consider the funds' investment objectives, risks, charges and expenses. Contact State Farm VP Management Corp (888-702-2307) for a prospectus containing this and other information. Read it carefully.
Securities, insurance and annuity products are not FDIC insured, are not bank guaranteed and are subject to investment risk, including possible loss of principal.
Variable annuities are long-term investments designed for retirement purposes.
The Interest Advantage Program does not assure a profit or protect against loss.
Variable annuities have fees and charges that include mortality and expense, administrative fees, fund expenses and may include surrender charge, transfer processing fee and additional deposit rider charge.
Past performance is no guarantee of future results.
State Farm VP Management Corp. is a separate entity from those State Farm® and/or unaffiliated entities which provide banking and insurance products.
Neither State Farm® nor its agents provide tax or legal advice.
Withdrawals and distributions of taxable amounts are subject to ordinary income tax and, if made prior to age 59 1/2, may be subject to an additional 10% federal income tax penalty. Dividends and gain from other investments may be taxed at capital gains tax rates (which are usually lower than ordinary income tax rates). The gain portion of variable annuity death benefit proceeds is taxable as ordinary income.
BUSINESS CONTINUITY PLAN DISCLOSURE FOR STATE FARM VP MANAGEMENT CORP.
State Farm VP Management Corp. has developed a Business Continuity Plan on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our business continuity plan.
Contacting Us—If after a significant business disruption you cannot contact us as you usually do at 1-888-702-2307, you should go to our web site at statefarm.com®.
Our Business Continuity Plan—We plan to quickly recover and resume business operations as soon as possible after a significant business disruption and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the firm’s books and records, and allowing our customers to transact business. In short, our business continuity plan is designed to permit our firm to resume operations as quickly as possible, given the scope and severity of the significant business disruption.
Our business continuity plan addresses: data back-up and recovery; all mission critical systems; financial and operational assessments; alternative communications with customers, employees, and regulators; alternate physical location of employees; critical supplier, contractor, bank and counter-party impact; regulatory reporting; and procedures to help ensure that our customers have prompt access to their funds and securities if we are unable to continue our business.
Our business continuity plan may be revised or amended. If changes are made, an updated summary will be promptly posted on our website (statefarm.com®). You may obtain a current summary of our business continuity plan by writing to us at State Farm Life Insurance Company, Variable Annuity Separate Account of State Farm Life Insurance Company, P.O. Box 2307, Bloomington, IL 61702-2307.
Varying Disruptions—Significant business disruptions can vary in their scope, such as only our firm, a single building housing our firm, the business district where our firm is located, the city where we are located, or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to only our firm or a building housing our firm, we may transfer our operations to a local site when needed and expect to recover and resume business within 1 business day. In a disruption affecting our business district, city, or region, we will transfer our operations to a site outside of the affected area, and expect to recover and resume business within 3 business days. In either situation, we plan to continue in business, transfer operations if necessary, and notify you through our web site statefarm.com®, or our customer number how to contact us. In the unlikely event that the significant business disruption is so severe that it prevents us from remaining in business, our plan provides procedures to help ensure that our customers have prompt access to their funds and securities.
In all of the situations described above, in light of the various types of disruptions that could take place and that every emergency poses unique problems, it may take longer to resume operations during any particular disruption.
For more information—If you have questions about our business continuity planning, you can contact us at 1-888-702-2307.
1 A surrender charge may be deducted from a policy withdrawal or surrender made during the first seven policy years. The surrender charge is 7% in the first policy year and declines by 1% in each following policy year until it reaches 0% in the eighth policy year.
Guarantees are based on the claims-paying ability of the issuing State Farm life insurance company.
State Farm Life Insurance Company (Not licensed in MA, NY or WI)
State Farm Life and Accident Assurance Company (Licensed in NY and WI)
State Farm (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates) is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites hyperlinked from this page. State Farm has no discretion to alter, update, or control the content on the hyperlinked, third party site. Access to third party sites is at the user's own risk, is being provided for informational purposes only and is not a solicitation to buy or sell any of the products which may be referenced on such third party sites.
Each State Farm insurer has sole financial responsibility for its own products.
State Farm VP Management Corp.
(Underwriter and Distributor of Securities Products)
One State Farm Plaza
Bloomington, Illinois 61710-0001
Variable Deferred Annuity policy series 97090, 97090, A97040, and A97090.