- State Guaranty Association The Arkansas Life and Health Insurance Guaranty Association (contact details are in the national directory at nolhga.com) provides limited protection if an insurance company fails. Arkansas provides higher coverage than many states, generally $300,000 in present value of annuity benefits per contract owner, per insurer. Verify current limits directly with the association. Annuities are not FDIC insured.
- Annuity Tax Treatment Arkansas taxes annuity income as ordinary income, with a modest annual retirement income exemption per taxpayer. Social Security benefits are not taxed. Confirm your specific situation with a tax professional.
- State Insurance Department The Arkansas Insurance Department regulates annuities sold in Arkansas. You can verify any insurance professional's license through its online license lookup.
- Free Look Period Arkansas 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 Arkansas has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to Arkansas residents must act in the consumer's best interest.
Retiring in Arkansas
Arkansas offers one of the lowest costs of living in the country, and areas like Hot Springs and northwest Arkansas have become genuine retirement draws.
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.