- State Guaranty Association The Michigan 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 Michigan has a flat income tax and has been phasing back in broad retirement income deductions, restoring exemptions for pension and retirement income through 2026. Social Security benefits are not taxed. Confirm your specific situation with a tax professional.
- State Insurance Department The Michigan Department of Insurance and Financial Services regulates annuities sold in Michigan. You can verify any insurance professional's license through its online license lookup.
- Free Look Period Michigan 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 Michigan has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to Michigan residents must act in the consumer's best interest.
Retiring in Michigan
Michigan's retirement tax rollback is restoring the broad exemptions retirees enjoyed for decades, improving the math for pension and annuity income each year.
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.