Single Premium Deferred Annuity

An annuity and a company you can count on
A Single Premium Deferred Annuity from Farmers New World Life can assure the future monthly income necessary for completion of your long-term financial goals. The plan allows your deposits to grow at a competitive rate and at the same time, offers one of the few remaining tax-deferred opportunities - no federal taxes need to be paid on the interest earnings until funds are withdrawn.

In addition, you will enjoy the strength, experience and service of an established, well regarded Life insurance company. Farmers New World Life's 80-plus years of experience, which has earned us favorable recognition from clients and industry analysts, is your assurance of future stability. Some questions and answers regarding Single Premium Deferred Annuities Basically, how does an Annuity work?
Simply stated, the Annuity contract is issued following your deposit of the single premium. Payments to you begin after a deferred period, starting on a date you have chosen. The money you set aside for the future compounds on a tax-deferred basis until you're ready to withdraw it.

What about interest rates?
A competitive rate is guaranteed for the first year. Thereafter, credited rates will be guaranteed for one year periods.

NOTE: Ask your Farmers Agent for the current and guaranteed interest rates credited for the product(s) discussed in this brochure. The current interest rate may be changed by the Company, but never below the guaranteed minimum. Is my principal guaranteed?
Yes! Your principal and interest accumulation are both guaranteed, with the exception of any charges and withdrawals.

How much will my Annuity cost?
There are two minimum premiums available - $50,000 and $100,000. But if you choose, you can deposit up to $250,000.

How will my annuity be paid?
You may choose any of these payout options: lump sum, life only, 10 to 30 year period certain and life, 10 to 30 year period certain, joint and survivor. If you die before electing a payout option, the full accumulated value of your Annuity will be paid to your beneficiary without a surrender charge.

Is there a sales charge?
No. However, state premium taxes may be deducted from the single premium. If the full policy value is withdrawn, there is a surrender charge applied to the value.

Will I have access to my money?
Yes! After the first year, you nay withdraw up to 10 percent of the policy value per year without paying a surrender charge (subject to minimums and limitations). A $25 processing fee is applied to each partial or full withdrawal.

Repetitive Payment Option
If a fixed payment is desired on a regular basis, you will want to request the Repetitive Payment Option. You may request to receive payments on a monthly, quarterly, semi-annual or annual basis. Once in every 12-month period you may change the amount and/or frequency of the payments. Additional partial withdrawals are not allowed in the same quarter repetitive payments are made.

Each payment must be a least $100 and the fund balance must be at least $50,000 or $100,000 after each payment (depending upon the minimum stated in your contract). To keep withdrawals within the 10 percent penalty-free range, total payments within one year must not exceed 10 percent of the fund balance at the beginning of the policy year. Surrender charges may apply and all or part of any withdrawal may be subject to a 10 percent federal penalty. You should consult with a tax advisor before requesting any withdrawals. Withdrawals prior to age 59 and a half may be subject to Federal and State early withdrawal tax penalties. We even offer a Skilled Nursing Facility Benefit*
After 90 days of confinement in a skilled nursing care facility, you will be eligible to make full or partial withdrawals without surrender charges. The benefit may be used any time after your contract has been in force for six months and before age 75. *Not available in Minnesota.

Farmers Single Premium Deferred Annuity offers:

• Easy Entry - The application process is simple and, with two minimum premium levels, it's easy to find a plan to fit your needs.
• Opportunity - Our plan provides a competitive rate of earnings growth.
• Tax Advantages - Tax on Annuity interest is deferred until you actually withdraw money from your contract. This helps your Annuity grow faster and gives you more control over the timing of the taxes you pay.
• Safety - Backed by a financially secure company, our contract provides interest rate guarantees as well as protection of your principal.
• Freedom - We provide a plan free of sales fees. Limited withdrawals may be made without surrender charges as early as the second policy year. If skilled nursing care is requested, you may qualify for a full or partial surrender without charges.

| Single Premium Immediate Annuity | Single Premium Deferred Annuity |
| When Comparing A Farmers Annuity with a CD | A Tax-Sheltered Annuity |