- State Guaranty Association The Connecticut Life and Health Insurance Guaranty Association (contact details are in the national directory at nolhga.com) provides limited protection if an insurance company fails. Connecticut provides among the highest coverage in the country, generally $500,000 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 Connecticut taxes annuity income, but pension and annuity income is fully exempt for taxpayers with income below state thresholds. Social Security is also exempt below those thresholds. Confirm your specific situation with a tax professional.
- State Insurance Department The Connecticut Insurance Department regulates annuities sold in Connecticut. You can verify any insurance professional's license through its online license lookup.
- Free Look Period Connecticut 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 Connecticut has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to Connecticut residents must act in the consumer's best interest.
Retiring in Connecticut
Connecticut is an expensive state to retire in, but its $500,000 guaranty coverage is among the strongest annuity safety nets in the country, and its pension and annuity exemption helps moderate-income retirees.
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.