The Annuity Advantage

Today there are many ways to watch your money grow. You can choose traditional passbook savings, certificates of deposit (CDs), money market accounts, or countless others. None of these is as attractive as a Farmers Annuity. Here's why:

The Annuity Advantage

The Farmers Annuities feature:

• Tax-favored interest accounts Competitive interest rates Penalty-free partial withdrawals No probate Lifetime income options
• Safety

Tax-Favored Interest Accumulation
Annuities are one of the last remaining tax-advantaged vehicles available to accumulate money for the future, whether used as a supplement to your pension or Social Security, or to fund your Individual Retirement Annuity (IRA). This is important because the tax treatment that your interest earnings receive can have a profound effect on how fast your money grows. It also affects when you will have to pay taxes on those interest earnings.

Every year that you earn interest in a pasbook savings or money market account or CD, you pay taxes on that interest. Annuities accumulate interest-free from currrent taxes. So, you pay no taxes on interest until you withdraw your money. This allows your fund to grow at a faster rate than the taxable alternatives. As an example, if your income puts you in a 36 percent tax bracket, you would need to receive a taxable interest rate of 8.59 percent to equal the accumulation value of an Annuity offering 5.5 percent. When you retire and begin withdrawing your money, you'll probably be in a lower tax bracket, so you'll have more money to spend.

Funds deposited in Farmers Annuity plans earn a competitive interest rate, which varies by the plan you choose. We review these rates every quarter, and while these rates may change, Farmers Annuities have historically averaged higher after-tax yields when compared to taxable vehicles. The interest rate your Annuity will earn will never be less than the guaranteed minimum. Ask your Farmers Agent about the current and guaranteed rates.

Penalty-Free Partial Withdrawals
You can withdraw up to 10 percent of your Annuity each year*, without penalty, so you'll have extra income incase of an emergency. There are some restrictions to guard against depleting the fund, and IRS penalties may apply until you reach age 50 and a half. *Beginning in the second year under some plans, subject to a small processing fee.

No Probate
Your beneficiary recieves the full Annuity value without penalty or fee and avoids the expense, delay and frustration of probate.

Lifetime Income Options
You choose what's right for you when it's time to receive payments. You may want to receive the entire Annuity value in one lump sum, or guaranteed lifetime payments which offer additional tax advantages and may better suit your financial situation.

Safety of Your Annuity
Your principal and interest are guaranteed by contract and backed by the full resources of Farmers New World Life. FNWL is required by law to maintain reserves of at least 100 percent of the amount of the Annuities. These reserves are conservatively invested as required by State Insurance Codes.

FNWL is recognized as one of the most financially strong and secure insurance companies in the nation. Ask your Farmers Agent for additional details.

Farmers Family of Annuity Products
Farmers offers Annuity plans which can be tailored to meet your particular needs and finances. Some of our most popular plans require minimum deposits from as low as $50 to $5,000. Subsequent deposits of $50 or more are optional. For your convenience we'll even draft your checking account or send deposit reminders. Other plans are available for single deposits of $50,000 or more.

| Single Premium Immediate Annuity | Single Premium Deferred Annuity |
| When Comparing A Farmers Annuity with a CD | A Tax-Sheltered Annuity |