- State Guaranty Association The Texas 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 Texas has no state income tax, so annuity income, along with Social Security, pension, and IRA distributions, faces no state income tax at all. Property taxes run higher than the national average. Confirm your specific situation with a tax professional.
- State Insurance Department The Texas Department of Insurance regulates annuities sold in Texas. You can verify any insurance professional's license through its online license lookup.
- Free Look Period Texas 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 Texas has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to Texas residents must act in the consumer's best interest.
Retiring in Texas
Texas hosts one of the largest retiree populations in the country, drawn by zero income tax, though property taxes deserve a line in every Texas retirement budget.
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.