The Select IV Fixed Annuity offers tax-deferred earnings with flexible options for premium payments that allow you to choose the interest rate strategy that works for you:
Flexible Premium Options
Portfolio 6 and Portfolio 10
- You can make payments when you choose and in the amount you wish ($500 minimum or $25 periodic).
- There is no initial interest rate guarantee, so the credited interest rate will fluctuate. However, when your contract is issued, the guaranteed1 minimum interest rate is determined and will never change.
- You have a choice of surrender charge periods (the length of time your money must be held in the annuity without experiencing a fee for withdrawals); six years for the Portfolio 6 and 10 years for the Portfolio 10 option.
Single Premium Options
New Money 2
- You make one premium payment of $10,000 or more.
- You receive an initial interest rate guarantee, meaning the current rate is guaranteed1 for two years. In addition, when your contract is issued, the guaranteed1 minimum interest rate is determined and will never change.
- After the initial interest rate guaranteed period, your funds will earn a renewal portfolio rate, which will fluctuate, but your guaranteed1 minimum interest rate will never change.
- The surrender charge period is two years.
New Money 4 with Bonus
- You make one premium payment of $25,000 or more.
- You receive a bonus interest rate so you earn an additional 1% during the first policy year.
- You receive an initial interest rate guarantee, meaning the current rate is guaranteed1 for four years and will never change.
- The surrender charge period is four years.
New Money 8 with Bonus
- You make one premium payment of $25,000 or more.
- You receive a bonus interest rate so you earn an additional 2% during the first policy year.
- You receive an initial interest rate guarantee, meaning the current rate is guaranteed1 for eight years and will never change.
- The surrender charge period is eight years.
No fees ― There are no annual fees or sales charges, so all of your money works for you immediately.
Banded interest rates ― Under current company practice, your fixed annuity will earn a higher credited interest rate when its value is more than $25,000 — and an even higher rate when its value is more than $100,000.
Tax-deferred growth ― Your money accumulates interest on a tax-deferred2 basis, meaning you don’t pay taxes on your earnings until you begin taking withdrawals.3 More of your money can earn interest and accumulate faster than in a taxable vehicle.
Access to your money ― You may withdraw4 up to 10 percent of your fixed annuity’s accumulated value without a surrender charge each year, beginning after the first policy year.5 Money may also be withdrawn without charge after the first contract year due to total disability, terminal illness, nursing home confinement for at least 90 consecutive days or an IRS-required minimum distribution. Funds received are subject to income tax.
Supplement your income ― You may receive periodic payments,4 known as systematic withdrawals, from your fixed annuity to supplement your income after you retire, while your balance continues to grow tax-deferred. Funds received are subject to income tax.
Income for the future ― Fixed annuity income payment options give you the flexibility in receiving income for the long term — even for life. The dollar amount of the payment depends on the balance in your contract and the payment option you select. If you die before all guaranteed1 payments are made, any remaining guaranteed amounts will be paid to your beneficiaries. Funds received may be subject to income tax in certain situations.
Financial protection for others ― If you die before your fixed annuity payout begins, your beneficiaries will receive the accumulated value of the annuity. Death proceeds are paid directly to your beneficiaries, so there should be fewer costs or delays in receiving the proceeds. Funds received may be subject to income tax.
As the owner of a fixed annuity, you will receive reports quarterly and annually that will list your annuity transactions and current accumulated value.
The Select IV Fixed Annuity from Farm Bureau has flexible premium options that can help you take advantage of different interest rate strategies. Find an agent now.
1 The guarantees expressed on this Web page are based on the claims-paying ability of Farm Bureau Life Insurance Company.
2 If you fund your qualified plan with a Select IV Fixed Annuity, the tax-deferral feature of this annuity is not necessary because a qualified plan already offers this feature. However, the guaranteed income payment options and death benefit available through the Select IV Fixed Annuity may enhance your qualified plan. Neither the Company nor its agents give tax, accounting or legal advice. Consult your professional advisers in these areas
3 Assuming appropriate ownership of the annuity.
4 Withdrawals may be subject to penalties and fees, and will reduce the annuity’s accumulated value and death benefit. An IRS tax penalty may also apply to withdrawals prior to age 59½.
5 Under current company practice, which may change at any time for any reason, you may withdraw up to 10 percent of your annuity’s accumulated value without a surrender charge during the first policy year.