An annuity is an insurance policy that can be a great way to plan for retirement if you want income you won't outlive. And if you don't need income now, a flexible premium deferred annuity offers a way to make premium payments over time and turn that into a guaranteed income stream later in life. Your earnings grow tax-deferred at interest rates guaranteed not to fall below a certain minimum.
This type of annuity can be a good choice if you plan to buy an annuity over the long term and prefer to do it in smaller payments, instead of making one lump sum payment. To find out what our choices are, talk to a COUNTRY Financial® representative.
A flexible premium deferred annuity is an insurance policy that requires just a $1,000 payment to get started.
You can make payments to your annuity annually, semi-annually, quarterly or monthly. You can also use our automatic monthly payment plan and we’ll deduct your payment each month from your checking account.
Each payment you make for your annuity will earn an interest rate guaranteed for one year. After that, the interest rate may vary annually, but it won't fall below a guaranteed minimum.
There are two stages to a flexible premium deferred annuity - the accumulation stage, when you're making payments into your annuity, and the payout stage, when you start receiving annuity payments.
During the accumulation stage, your annuity's value grows tax-deferred. If, during this stage, you decide to take a partial or full withdrawal of your money, you can.
However, surrender charges and fees may apply, depending on how long you've owned the annuity and how much money you withdraw, plus you'll pay any income taxes that apply. An additional federal tax penalty may also apply if you take a withdrawal prior to age 59 ½.
When you first purchase your annuity you select an “annuitization date,” which is the date you start receiving payouts. This date can be changed any time during your accumulation stage.
You can choose to receive payouts monthly, quarterly, semi-annually or annually. Your periodic payout amount will depend on factors like:
You can choose to receive guaranteed income for the rest of your (or your spouse’s) life. You can opt to surrender your annuity contract and take a lump sum payment, or based on the date of the contract issued, you can choose from a variety of payout options for a guaranteed steady stream of income.
Talk to a COUNTRY Financial representative about the options available to you based on your contract.
If you meet certain requirements as outlined in your contract such as not being able to perform two of the six Activities of Daily Living, you may be able to access your annuity’s account value and waive certain surrender charges. If you have questions, please contact your COUNTRY Financial representative.
Annuities offer tax-deferred growth, which means you don't pay taxes until the money is paid to you. When you take payouts or make a withdrawal, you pay ordinary income taxes on the portion that represents earned interest (your gain). You'll also be subject to a 10% federal tax penalty on earnings you withdraw before age 59 ½, unless an exception applies.
The taxation of annuities purchased within an IRA or other tax-qualified retirement plan works a little differently. These annuities follow the tax rules that apply to the tax-qualified plan and may vary according to plan type. Buying an annuity within an IRA or other tax-qualified plan doesn't give you any extra tax deferral benefits, so you should choose your annuity based on its other features and benefits as well as its risks and costs. Consult with your tax advisor for information regarding your specific situation.
Review our annuities comparison guide for a side-by-side look at your choices.
Talk to a COUNTRY Financial representative to get more details and review the pros and cons of your options.
Annuities issued by COUNTRY Investors Life Assurance Company®, Bloomington, IL. Annuities are not available in all states.
The information and descriptions contained here are not intended to be complete contract descriptions. Annuity contracts contain exclusions, limitations, charges and terms for keeping them in force. Contact your financial representative for costs and complete details.
Annuity guarantees based on the claims paying ability of COUNTRY Investors Life Assurance Company.
With tax-deferred growh, the interest your annuity earns is generally subject to ordinary income taxes upon payout or withdrawal, and may be subject to a 10% federal tax penalty if taken before age 59 1/2.
COUNTRY Financial and our representatives cannot give tax advice. Any information we provide reflects our understanding of current tax laws, which are subject to change and reinterpretation. See your tax advisor regarding your personal circumstances.
Contract form numbers: ICC18(FPDA), In North Dakota: FPDA18(ND)
COUNTRY Financial® is the marketing name for the COUNTRY Financial family of affiliated companies (collectively, COUNTRY), which include COUNTRY Life Insurance Company®, COUNTRY Mutual Insurance Company®, and their respective subsidiaries, located in Bloomington, Illinois.
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