- State Guaranty Association The Delaware Life and Health Insurance Guaranty Association (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 Delaware taxes annuity income as ordinary income but offers a pension and retirement income exclusion of up to $12,500 per year for residents 60 and older. Social Security is not taxed, and Delaware has no state sales tax. Confirm your specific situation with a tax professional.
- State Insurance Department The Delaware Department of Insurance regulates annuities sold in Delaware. You can verify any insurance professional's license through its online license lookup.
- Free Look Period Delaware 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 Delaware has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to Delaware residents must act in the consumer's best interest.
Retiring in Delaware
No sales tax, low property taxes, and beach towns like Lewes and Rehoboth make Delaware a quiet favorite for East Coast 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.