- State Guaranty Association The North Dakota 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 North Dakota has some of the lowest income tax rates in the country, with many retirees owing little or nothing under its current structure. Social Security benefits are not taxed. Confirm your specific situation with a tax professional.
- State Insurance Department The North Dakota Insurance Department regulates annuities sold in North Dakota. You can verify any insurance professional's license through its online license lookup.
- Free Look Period North Dakota 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 North Dakota has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to North Dakota residents must act in the consumer's best interest.
Retiring in North Dakota
North Dakota's income tax rates are now so low that many retirees owe nothing at all, an underappreciated fact outside the state.
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.