- State Guaranty Association The Maine 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 Maine taxes annuity income as ordinary income but offers a pension and retirement income deduction that has grown substantially in recent years. Social Security benefits are not taxed. Confirm your specific situation with a tax professional.
- State Insurance Department The Maine Bureau of Insurance regulates annuities sold in Maine. You can verify any insurance professional's license through its online license lookup.
- Free Look Period Maine 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 Maine has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to Maine residents must act in the consumer's best interest.
Retiring in Maine
Coastal Maine draws retirees who value four seasons and small-town life, and the state's growing retirement income deduction has softened its tax picture.
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.