- State Guaranty Association The South Carolina Life and Accident and Health Insurance Guaranty Association provides limited protection if an insurance company fails. South Carolina's guaranty coverage for annuity benefits is generally $300,000 in present value per contract owner, per insurer, which is higher than many states. Verify current limits directly with the association. Annuities are not FDIC insured.
- Annuity Tax Treatment South Carolina taxes annuity income as ordinary income, but offers meaningful retirement income deductions, including an expanded deduction for taxpayers 65 and older. Combined with no estate tax and low property taxes, South Carolina is widely considered tax friendly for retirees. Confirm your specific deduction amounts with a tax professional.
- State Insurance Department The South Carolina Department of Insurance regulates annuities sold in South Carolina. You can verify any insurance professional's license through the Department's online licensee lookup.
- Free Look Period South Carolina generally provides a free look period of at least 10 days for annuity contracts, and longer for replacement contracts. Your contract states the exact period that applies to you.
- Best Interest Standard South Carolina has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to South Carolina residents must act in the consumer's best interest.
Retiring in South Carolina
South Carolina, and the Upstate in particular, continues to attract retirees with its low cost of living, mild winters, and favorable tax treatment of retirement income. This is our home state. Live Free Insurance Group is based in Boiling Springs, just outside Spartanburg.
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.