- State Guaranty Association The Arizona Life and Disability Insurance Guaranty Fund (contact details are in the national directory at nolhga.com) provides limited protection if an insurance company fails. Coverage for annuity benefits is generally $250,000 in present value per contract owner, per insurer. Verify current limits directly with the association. Annuities are not FDIC insured.
- Annuity Tax Treatment Arizona has a flat income tax of 2.5 percent, one of the lowest in the country, and annuity income is taxed at that flat rate. Social Security benefits are not taxed. Confirm your specific situation with a tax professional.
- State Insurance Department The Arizona Department of Insurance and Financial Institutions regulates annuities sold in Arizona. You can verify any insurance professional's license through its online license lookup.
- Free Look Period Arizona generally provides a free look period of at least 10 days for annuity contracts, often longer for replacement contracts. Your contract states the exact period that applies to you.
- Best Interest Standard Arizona has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to Arizona residents must act in the consumer's best interest.
Retiring in Arizona
Arizona remains one of America's top retirement destinations, anchored by massive active-adult communities around Phoenix and Tucson and a flat 2.5 percent income tax.
Learn before you buy
Start with what an annuity actually is, then see how the types differ and which myths to ignore. If someone has already shown you a product, get a free second opinion before you sign.