Just the facts about Variable Annuities

• What is it?

  A variable annuity is a type of insurance contract that offers both guaranteed retirement income and an investment feature. The investment features typically allow you to place your investments in market-based "sub-accounts", which function similar to mutual funds.

• How does it help me?

  Variable Annuities can help you:

  • To not outlive your money.
  • Ensure you have a guaranteed monthly income at retirement.
  • Outpace inflation.
  • Grow your money tax deferred (withdrawals or surrenders may be subject to tax and if under 59½ may include additional tax penalties).

• What do I get?

  Variable Annuities offer:

  • Guarantees - Annuities provide you a guaranteed income in retirement.
  • Investment Choices - Variable Annuities offer a variety of investment options that fit your risk comfort level and are adjustable to your needs and objectives as you go throughout life.
  • Options - Our Variable Annuities offer you choices such as optional guaranteed death benefits so that you can tailor your product to your needs.
  • Tax Deferred Growth - Variable Annuities are tax deferred which compounds the growth of your account value.

Talk to your Farmers Insurance and Financial Services agent about the features and benefits of variable annuities. Your agent can answer your questions and help you to decide if this type of investment makes sense for you.

* Variable annuities are subject to insurance related charges and fees. Purchasers of variable annuities should consider the objectives, risks, charges and expenses of the contract and underlying investment options before investing. Contact a Farmers Insurance and Financial Services Agent for a prospectus that contains this and other important information; read it carefully before purchasing. Past performance of any investment does not guarantee future results; investment returns will fluctuate so such shares, when redeemed, may be worth more or less than the original amount invested.

Performance of variable insurance contracts will be affected by annual mortality and administrative expenses and is subject to a declining deferred surrender charge. Income payments are guaranteed by the insurance company, but subject to the company's claims paying ability. Withdrawals and/or other distributions of taxable amounts, including death benefits, may be subject to ordinary income tax and a possible 10% federal tax penalty if taken prior to age 59½. Withdrawals may reduce the value of the death benefit and any optional benefits. Please consult your tax preparer or CPA.

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