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posted in: Retirement Planning

The Facts about Fixed Annuities

An annuity offers many benefits, including the ability to give you guaranteed payments for life. A fixed annuity from COUNTRY Financial® can be a great addition to your retirement plan.

How an annuity works:
  • You make a single payment or series of payments into your annuity and will receive a guaranteed interest rate. With non-qualified plans, there are no limits to how much you can put into an annuity.
  • You can start taking payments at age 59½ without penalty (tax penalties may apply to withdrawals taken before age 59½, and surrender charges may apply at any time, under certain conditions).
  • When you’re ready to start taking money out of your annuity, you can choose from a variety of ways to receive your payments – including receiving payments for the rest of your life.
Benefits of fixed annuities:
  • Tax-deferred buildup
    • You don’t pay income tax on the buildup accumulated in your annuity until you make withdrawals.
  • Various payment options
    • You can choose to receive guaranteed income for as long as you live, or as long as you and your spouse live – monthly, quarterly, semi-annually, or annually. We’ll send you a check for each scheduled payment, based on the rate declared by the company at that time – but not to fall below the contractual guarantees.
COUNTRY offers three types of fixed annuities:
1) Flexible Premium Deferred Annuity
  • Flexible deposits
    • You can start this annuity with a minimum of $50 and choose to pay annually, semi-annually, quarterly, or monthly. You can even have your payments deducted from your checking account each month.
  • Guaranteed interest rates
    • A special interest rate is guaranteed on purchase payments for the first contract year. At the end of one year, the company’s portfolio rate then applies to the accumulated value. The portfolio rate is periodically determined by the company and may go up or down as economic conditions change, but will never fall below the guaranteed minimum.
2) Single Premium Deferred Annuity
  • One-time payment
    • You make a one-time payment of at least $10,000.
  • Choose from three guaranteed interest rate periods:
    • Three years
    • Five years
    • Seven years
  • Competitive interest rates
    • Special interest rates apply to the initial guarantee period. After the guarantee period, your contract is credited with the company’s current portfolio interest rate.
3) Single Premium Immediate Annuity
  • This annuity is similar to the Single Premium Deferred Annuity, but you begin receiving payments immediately after you make your one-time payment (instead of at a later date).
Learn more:

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.

Registered broker/dealer offering securities products: COUNTRY® Capital Management Company, 1705 N Towanda Ave, PO Box 2222, Bloomington, IL 61702-2222, 1-866-551-0060. Member FINRA/SIPC

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.