- State Guaranty Association The Kentucky 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 Kentucky has a flat income tax and offers a retirement income exclusion of over $31,000 per person per year, covering pension and annuity income. Social Security benefits are not taxed. Confirm your specific situation with a tax professional.
- State Insurance Department The Kentucky Department of Insurance regulates annuities sold in Kentucky. You can verify any insurance professional's license through its online license lookup.
- Free Look Period Kentucky 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 Kentucky has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to Kentucky residents must act in the consumer's best interest.
Retiring in Kentucky
Kentucky's retirement income exclusion of more than $31,000 per person makes it far friendlier to annuity income than most people assume.
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.