What is it?
With a one-time payment, a single premium immediate annuity is an insurance policy that can provide you with immediate guaranteed income for the rest of your life.
This type of fixed annuity can be a good choice if you’re getting ready to retire or are already retired, and want to turn some of your money into a lifetime income stream. Your retirement situation is unique to you, so a COUNTRY Financial® representative can help you understand our annuity options and give you a quote of how much you might expect to receive.
How does it work?
A single premium immediate annuity requires a $10,000 minimum payment to get started, and there’s generally no maximum limit.
You’ll make one lump sum payment to purchase your annuity, and you can choose how frequently to receive payouts from it. Unlike deferred annuities, immediate annuities don't offer an accumulation stage.
Payout options
A single premium immediate annuity can give you a guaranteed steady stream of income, with a variety of payout options to choose from. Some common payout options include getting payments for:
- Life only- payments stop at the annuitant's death.
- Life with 10, 15 or 20 years of certain - payments stop at the annuitant's death or at the end of a selected period (10, 15 or 20 years), whichever is later.
- Life with an installment refund - payments stop at the annuitant's death or when the total payouts equal the amount applied under the option, whichever is later.
Another popular choice is to pick an option with your spouse that can continue payments to the surviving spouse after one of you passes away.
Payout frequency options
Annual
Payouts begin one year after purchase date.
Semi-annual
Payouts begin six months after purchase date.
Quarterly
Payouts begin three months after purchase date.
Monthly
Payouts begin one month after purchase date.
Tax information
Payouts you receive from your annuity are divided into two parts: a portion that represents the return of your premium and a portion that represents earnings.
The portion of the payment that's considered to be a return of your initial premium is excluded from your taxable income. In most cases, only the portion of your payment that represents a gain is subject to ordinary income taxes.
Which annuity option is right for you?
Review our annuities comparison guide for a side-by-side look at your choices.
Ready to start?
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 growth, 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:
Single Premium Immediate Annuity: MAI-37-87, CI_37_02
COUNTRY Financial® is a family of affiliated companies (collectively, COUNTRY) located in Bloomington, IL. Learn more about who we are.
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