State Farm Annuities

Annuity Basics

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

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have become important retirement planning tools (Although income tax-deferred, taxes will become due when funds are withdrawn).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
Types of Annuities
Tax-Qualified and Non-Tax Qualified Plans
Annuity Mythbusters

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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 0-90: $25,000 Age 21-90: $25,000
Interest Rate Guarantee Period3 1 year, and can adjust annually Can be locked in for 3, 5, 7, or 10 years N/A
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)


Policy Series Wording Information