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Farm Bureau Annuity Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

Farm Bureau Financial Services offers a series of fixed annuities. These retirement vehicles protect your retirement savings and allow it to grow with a locked in interest rate. You can also choose an indexed annuity option which offers room for more growth based on the performance of a stock market index. The firm also provides access to individual retirement accounts (IRA)and employer-sponsored 401(k)s and other retirement savings vehicles. Farm Bureau Financial Services has been around since 1939 and is owned by Farm Bureau Mutual Holding Company.

Annuity Fees Annuity Type Minimum Initial Premium More Information
Farm Bureau Select IV New Money 4 Annuity Find an Advisor

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  • No annual contract fees
Fixed annuity $25,000

Annuity Type

Fixed annuity

Minimum Initial Premium

Farm Bureau Flexible Premium Portfolio 10 Find an Advisor

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  • No annual fees
Fixed annuity $500

Annuity Type

Fixed annuity

Minimum Initial Premium

AccumuLock Indexed Annuity Find an Advisor

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  • No annual contract fees
Fixed indexed annuity $5,000

Annuity Type

Fixed indexed annuity

Minimum Initial Premium


As is the case with any annuity, its guarantees rely on the claims-paying capability of the issuer. Farm Bureau, which has been around since the 1930s, has received financial strength rankings from industry analysts. A.M. Best gave it an A, which is considered excellent. But because annuities can be complex savings vehicles, you should discuss these options with a financial advisor.

Farm Bureau Select IV New Money 4 Annuity

The Farm Bureau Money 4 annuity is a single premium fixed annuity. You can purchase a four-year-term contract with a single minimum initial premium of $25,000. Your money then grows tax deferred based on a fixed interest rate. The maximum issue age for the New Money 4 Annuity is 90. 

As with all annuities offered by Farm Bureau, you have several payout options. You can choose to receive an income stream monthly, quarterly or annually at the end of your contract. You can also choose a lifetime income stream. Death benefits are also available before you annuitize your contract.


As is the case with most fixed deferred annuities, the New Money 4 option doesn’t charge any annual contract fees. But Farm Bureau would levy surrender charges if you access more than 10% of your account value, based on the following schedule:

Year 1 2 3 4 5+
Withdrawal Charge 8% 6% 4% 2% 0%

And if you tap into your account before reaching age 59.5, the IRS may hit you with a 10% penalty tax, in addition to normal income taxes.

Realistic Return Expectations 

Your return on the New Money 4 annuity would depend largely on the size of your premiums, your interest rate and the payout option you select. As of Feb. 2021, current interest rates as set by Farm Bureau Financial Services are:

  • $25,000 - $99,999: 1.25%
  • $100,000+: 1.50%

Farm Bureau Flexible Premium Portfolio 10

The Portfolio 10 annuity by Farm Bureau is a flexible premium fixed annuity. This means that you can continue making additional premiums in addition to your opening payment. As a result, the combined value grows tax-deferred and takes advantage of compound interest. The current minimum guaranteed interest rate for the Portfolio 10 annuity is 1.00%. 

As the name suggests, Portfolio 10 is designed as a 10-year contract. You can open an account with a minimum initial premium of $500 and minimum additional premiums of at least $25. The maximum issue age is 85.

The Portfolio 10 offers numerous payout options. You can take periodic payments monthly, quarterly or annual. You can also opt for a lifetime income stream. Of course, the size of your payments can vary greatly depending on your payout option selection. You should carefully discuss these with your financial advisor in order to determine which is best for you. 


The Portfolio 10 annuity doesn’t come with an annual contract fees. However, you would face surrender charges if you take more than 10% of your account value. Below, we provide Portfolio 10 surrender charge schedule. 

Year 1 2 3 4 5 6 7 8 9 10 11+
Withdrawal Charge 9% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0

You may also be charged a 10% tax penalty if you withdraw your money before turning age 59.5. This is in addition to ordinary income taxes. 

Realistic Return Expectations 

The size of your return would vary based on several factors such as your premium payments, interest rate and payout selection. You can view Farm Bureau’s current interest terms below:

  • $0 - $24,999: 1.00%
  • $25,000 - $99,999: 1.00%
  • $100,000+: 1.00%

AccumuLock Indexed Annuity

The AccumuLock Indexed Annuity by Farm Bureau can provide you with an interest rate tied to the performance of the S&P 500. This is an index that tracks some of the largest companies in the U.S. across various sectors of the economy. It also has a fixed interest component to protect your initial investment. This is a flexible premiums indexed annuity. So you can keep putting money into it after you open your account with your initial premium. The minimum initial premiums is $5,000. 

As with many indexed annuities, the AccumuLock option provides with various interest-crediting strategies to choose from. We explain these below. 

  • Annual Reset Point-to-Point Index Account: With this strategy, your interest gets credited annually based on the difference between the initial index value and the ending index value within a year. It takes the beginning index value on the month you open your contract and the end index value is taken on the same month the following year. A positive difference is subject to a cap or limit. If the cap is 5% and the difference is 7%, you get credited 5%. If the difference is negative, you won’t get any interest. But you won’t lose money either. 
  • Monthly Averaging Index Account: This strategy credits interest based on the average performance of the index throughout a given year. So it averages out the final index value of each month. If the average is positive, your interest would reflect that percentage up to a cap. If the average is negative, your interest would be 0%. 
  • Fixed Interest Account: The company provides you with a set interest rate which will not dip below 1%. You can allocate up to 50% of your premium toward a fixed account portion.

This annuity also comes with the Simple6 income rider that allows you to make guaranteed annual withdrawal for life. You can activate it once you’ve accumulated at least $25,000 in your account and you must be at least 40-years-old to activate the rider. When you activate this rider, you get a set benefit base. It increases each year by 6% for up to 20 years. You decide when to receive the withdrawal benefits after you turn 50 and the rider has been active for at least one year. The guaranteed income withdrawal percentage is determined at the time of the first rider withdrawal based on the maximum annual withdrawal percentage multiplied by the minimum base.  

The Chronic Illness benefit allows you to double your Simple Income Rider guarantee income withdrawal for up to five years if you become chronically ill or face a severe cognitive impairment. You can use it to cover any long-term care costs you need. However, you must meet the following criteria to qualify: 

  • Must have been activated for at least two years.
  • Your qualification must be reviewed annually.
  • You must be chronically ill, cognitively impaired for a period of 90 days prior to qualification.


The Accumulated Fixed Index annuity does not require annual fees or maintenance charges. But the company would charge a withdrawal fee if you take more than 10% of your account’s accumulated value. We provide the company’s current fee schedule below:

Year 1 2 3 4 5 6 7 8 9 10+
Withdrawal Charge 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%

Realistic Return Expectations 

The fixed interest rate associated with this annuity is 1.50%, as of Feb. 2021. For the point-to-point indexing strategy, the cap is 3.50%. For the monthly average indexing strategy, the cap is 3%. These rates will change over time.

Retirement Savings Tips 

  • Annuities can be complex products with plenty of variables that can either make or break your retirement, so you should consult a financial advisor. Use our advisor matching tool. It connects you with up to three advisors in your area. 
  • The SECURE Act made sweeping changes to the retirement savings industry. So you may for the first time have access to annuities in your workplace retirement savings among other changes. Learn the different types of annuities before you make a choice.


Best Places for Small Business Owners

SmartAsset analyzed data to find the best places for small business owners in the country. This interactive map shows the best counties for small business owners in the U.S. and in each state. Zoom between states and the national map to see the top spots in each region. Also, scroll over any county to learn about that region's small business statistics.

Rank County Small Business Returns Small Business Income Income Taxes

Methodology Which places are best for small businesses owners? To answer this question, we considered three factors: the proportion of people in a county with small business income, how much business income those people reported and the amount of tax a potential resident must pay on their income.

To determine how attractive a region is for small business owners, we compared the number of tax returns that report small business income compared to the total tax-filing population of the region. Next, we compared the total amount of small business income to the overall amount of income reported in each region.

Small businesses are typically incorporated as pass-through entities, meaning that the business owners pay income taxes on the company profits rather than the company itself paying income tax. Because of this, income taxes can play a major role in determining the financial success of a given small business. To determine income tax burdens across counties, we used the national median household income. We then applied relevant deductions and exemptions before calculating federal, state and local income taxes for each location.

These three factors were then indexed and equally weighted to yield our small business index. Places with the highest small business index are the places which ranked the highest in the study.

Sources: Internal Revenue Service (IRS), US Census Bureau 2018 American Community Survey, Government Sources, SmartAsset