- State Guaranty Association The Vermont 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 Vermont taxes most retirement income, including annuity distributions, as ordinary income, and taxes Social Security for retirees above state income thresholds. Confirm your specific situation with a tax professional.
- State Insurance Department The Vermont Department of Financial Regulation regulates annuities sold in Vermont. You can verify any insurance professional's license through its online license lookup.
- Free Look Period Vermont 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 Vermont has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to Vermont residents must act in the consumer's best interest.
Retiring in Vermont
Vermont taxes retirement income more heavily than most states, which puts a premium on tax-aware planning for retirees committed to the Green Mountains.
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.