- State Guaranty Association The Indiana 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 Indiana has a flat income tax of roughly 3 percent and generally taxes annuity income at that rate. Social Security benefits are not taxed. Confirm your specific situation with a tax professional.
- State Insurance Department The Indiana Department of Insurance regulates annuities sold in Indiana. You can verify any insurance professional's license through its online license lookup.
- Free Look Period Indiana 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 Indiana has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to Indiana residents must act in the consumer's best interest.
Retiring in Indiana
Indiana pairs one of the lowest flat tax rates in the country with a low cost of living, keeping more of a retiree's fixed income working.
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.