- State Guaranty Association The Hawaii Life and Disability 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 Hawaii exempts employer-funded pension income from state tax, but distributions from deferred annuities and IRAs are generally taxed as ordinary income. Social Security benefits are not taxed. Confirm your specific situation with a tax professional.
- State Insurance Department The Hawaii Insurance Division regulates annuities sold in Hawaii. You can verify any insurance professional's license through its online license lookup.
- Free Look Period Hawaii 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 Hawaii has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to Hawaii residents must act in the consumer's best interest.
Retiring in Hawaii
Hawaii's cost of living is the highest in the nation, but its exemption for employer pension income and year-round climate keep it on retirement wish lists.
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.