What is an annuity?
An annuity is a type of policy issued by an insurance company to promise you an income that can last you a lifetime.
Even after you stop working, bills will still come in. Count on your fixed annuity for a dependable income stream to help you handle some of the basic costs of living.
State Farm® Life Insurance Company (Not licensed in MA, NY or WI) or State Farm Life and Accident Assurance Company (Residents of NY and WI only) offers three annuity options.
Guaranteed
Income Now
Convert a portion of your retirement assets into guaranteed lifetime income that starts immediately.
- Income can start after the first month or up to 13 months after the policy is issued.
- You can elect to receive guaranteed payments for life, or elect payments to be made over a specified length of time (period certain).
- Our Optional Annual Increase Benefit allows you to increase your annuity payments from 1% to 5% annually.
- Ideal at or near retirement when you’re ready for help with retirement expenses.
Future
Income Plus
Diversify a portion of your retirement assets into conservative long-term investments.
- A guaranteed interest rate.
- The tax-deferral and compounding of interest provided by an annuity can help it grow larger than an equal amount placed in a taxable account.
- The option to generate guaranteed lifetime income.
- It can also be used to fund traditional IRAs, Roth IRAs, and Simplified Employee Pension Plans.
Guaranteed
Income Later
Convert a portion of your retirement assets into guaranteed lifetime income beginning at a future date.
- Income can start as soon as 13 months into the future, or, depending on your age, up to 30 years later.
- Our Optional Annual Increase Benefit allows you to increase your annuity payments from 1% to 5% annually.
- Adding a Qualified Longevity Annuity Contract (QLAC), can give you more flexibility because it enables you to delay a portion of your funds until age 85. Consult your tax advisor for individual tax advice.
- Best when approaching retirement and you can delay taking your first payment.
Disclosures
This is a general description of coverage. A complete statement of coverage is found only in the policy.
Contact your State Farm agent for details on coverage, costs, and restrictions.
Neither State Farm nor its agents provide tax or legal advice. Please consult your tax, legal, or investment advisor regarding your specific circumstances.
Each State Farm insurer has sole financial responsibility for its own products.
Guarantees are based on the claims-paying ability of the issuing State Farm life insurance company.
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.
Not FDIC Insured
No Bank Guarantee
May Lose Value
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, Illinois
IL-100.5