- State Guaranty Association The Virginia Life, Accident and Sickness 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 Virginia taxes annuity income as ordinary income but offers an age deduction of up to $12,000 per year for residents 65 and older, subject to income limits. Social Security benefits are not taxed. Confirm your specific situation with a tax professional.
- State Insurance Department The Virginia Bureau of Insurance regulates annuities sold in Virginia. You can verify any insurance professional's license through its online license lookup.
- Free Look Period Virginia 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 Virginia has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to Virginia residents must act in the consumer's best interest.
Retiring in Virginia
From the Blue Ridge to the Chesapeake, Virginia's mix of moderate taxes, strong healthcare, and four mild seasons keeps it high on retirement lists.
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.