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Single Premium Immediate Annuity
An annuity and a company you can count on
Is your primary financial or retirement concern a steady stream of income that will start now and continue into the future? If so, a Single Premium Immediate Annuity from Farmers New World Life may be the solution. The numerous advantages of this Annuity, plus our outstanding record of performance, provide peace of mind and help you attain your financial goals.
A Single Premium Immediate Annuity will pay you a predetermined, constant income as long as ou live. A variety of payout options can fulfill long-term income and retirement needs for you as well as your survivors. In addition, Farmers New World Life has developed a record of operating stability that has earned us favorable recognition from our clients as well as the insurance industry. Questions and answers about a Single Premium Immediate Annuity
How does it work?
The plan will pay you periodically following the payment of a single premium to Farmers New World Life. Income payments can commence within 30 days or be deferred for up to one year from the date you make your payment.
What are the payout options?
Most annuitants choose to receive payments monthly; however quarterly, semi-annual or annual payment options are also available.
We offer a wide variety of Annuity options at payout, including:
- Period Certain - This option privides periodic payments for a specified period of time and guarantees any remaining payments will continue to the beneficiary if the annuitant dies prior to the end of the specified period. Guaranteed periods available are 10, 15, or 20 years.
- Life Only - This option provides or periodic payments as long as the annuitant lives. Once the annuitant dies, the contract is fulfilled and no further payments are made.
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Life Income with Period Certain - This option provides periodic payments for as long as the annuitant lives, and guarantees that any remaining payments will be made to the beneficiary if the annuitant dies prior to the end of the selected period. Guaranteed periods available are 10, 15, and 20 years.
- Joint and Survivor - This option provides periodic payments for as long as the annuitant and a named individual live. Prior to the Annuity commencement date, an additional election must be made to determine if the payment amount continuing for the life of the surviving annuitant will be equal, or be two-thirds or one-half of the amount paid to the annuitant.
How much will it cost?
The cost depends on your age and gender. The minimum premium is the amount necessary to provide a monthly income of $100. As an example, the minimum premium for a male annuitant age 65 will be approximately $14,000. Younger ages will require a larger premium. Your farmers agent can provide a quote based on your specific circumstances.
Maximum premiums of up to $250,000 for both qualified and non-qualified plans can be made without prior company approval.
How can I benefit from the Annuity?
An Immediate Annuity can guarantee a periodic income for as long as you live. It's a fixed income that you cannot outlive and that cannot be affected by changes in the economy.
How about using qualified or non-qualified funds?
Either may be used to purchase your Annuity. The source of the funds is important since it determines how your income payments will be taxed.
Qualified Annuities are purchased with "pre-tax" funds provided by pensions, profit sharing plans or 401 (K)s. Annuity income is generally considered fully taxable when received. Non-qualified Annuities are purchased using "after tax" funds. An IRS exclusion ratio is used to determine the taxable and nontaxable portions of the income payments.
A Single Premium Immediate Annuity from Farmers offers you:
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