Annuity FAQs

What is an annuity?
When can I begin getting payments from my annuity?
How long will my annuity pay out?
What are the tax benefits of an annuity?
What is the minimum amount I need to start an annuity?
Do annuities have a guaranteed interest rate?

What is an annuity?
Generally speaking, an annuity is simply an agreement for one person or organization to pay another a series of payments. If you die before all guaranteed payments have been made, any remaining amount will be paid to your beneficiary according to the terms of your settlement option.
When can I begin getting payments from my annuity?
You can begin collecting payments at age 59 ½, but there is some flexibility built in for those who need to make withdrawals earlier. Beginning with the second year of the contract, you can withdraw up to 10 % of the accumulated value at the end of the previous year without surrender charges being assessed. In some states, a partial withdrawal fee may apply. Keep in mind, a 10 % federal income tax penalty may be imposed on any withdrawal before age 59 ½. In addition, you have to report interest income on your tax return for the taxable portion of any withdrawal.

You may have other withdrawal options prior to age 59 ½ and some limitations or penalties may apply. Contact your COUNTRY Financial representative for all the details.
How long will my annuity pay out?
You can choose to receive a guaranteed income for as long as you live, or you could opt for larger payments for a shorter length of time. Annuity payments can be made monthly, quarterly, semi-annually or annually. The dollar amount of your payment depends on the balance in your contract, the settlement option you select and your age when you begin the settlement.
What are the tax benefits of an annuity?
Your annuity’s earnings buildup is not taxed until a withdrawal is made. Also, a fixed portion of each payout from a non-qualified annuity is excluded from taxable income. That portion of the payment is considered to be a return of your capital.
What is the minimum amount I need to start an annuity?
Fixed flexible premium annuities require a minimum investment of $50. The minimum investment needed for a single premium deferred annuity is $10,000.
Do annuities have a guaranteed interest rate?
Yes, some do. The Flexible Premium Deferred, Single Premium Deferred and Single Premium Immediate annuities offered by COUNTRY Financial have a guaranteed interest rate based on the initial premium deposit. A COUNTRY Financial representative can review the current rates with you.