Free-look period
Michigan annuity contracts must state a free-look period of at least 10 days after you receive the contract. During that time you can cancel and receive a prompt refund of your premium.
Source: MCL 500.4073(1)
All state guides
Annuities in Michigan
Michigan annuity guide
Learn the basics of fixed and fixed indexed annuities in Michigan: who oversees annuity sales, how the free-look period works, what the state guaranty association is and which questions to ask before you buy. This page is general education. Laws, limits and taxes change often, so a licensed professional can go over what applies in Michigan today.
Good to know: this page is general education, not tax, legal or financial advice. Laws and taxes change often, and this page was last reviewed October 28, 2026. For the current rules in Michigan, book a call and a licensed professional can go over what applies today.
Have questions about annuities in Michigan? Choose how you’d like to get answers:
*AnnuityTown is paid per qualified lead by the licensed partner company it connects you with.
Licensed professionals can only help people in states where they are licensed. The licensed partner confirms whether it can help you in Michigan when you reach out.
Annuity topics to know in Michigan
Here is general background on six topics that come up with fixed and fixed indexed annuities in Michigan, gathered from public sources as of October 28, 2026. Laws and limits change, so treat these as a starting point and confirm the current details before you decide anything.
Best-interest and suitability rule
Michigan's annuity rules, MCL 500.4151 to 500.4166, reflect the 2020 NAIC Model 275 revisions. Producers must act in the consumer's interest when recommending an annuity, and the rules took effect June 29, 2021.
Source: MCL 500.4151 to 500.4166 (Act 266 of 2020)
Guaranty association coverage
Michigan Life and Health Insurance Guaranty Association: Up to $250,000 in present value of annuity benefits, including net cash surrender and withdrawal values, per life for each insolvent insurer. Several annuities from one insurer share that limit.
Coverage has limits and conditions and applies only if an insurer becomes insolvent. It is not a reason to buy an annuity and does not replace checking an insurer’s financial strength. See current details at the association’s website.
Source: MCL 500.7701 et seq. (Michigan Life and Health Insurance Guaranty Association Act)
Taxes on annuity income
How annuity income is taxed in Michigan depends on current state and federal law and on your own situation, and tax rules change often. AnnuityTown does not give tax advice. A tax professional can tell you what applies to you.
Creditor protection
Whether an annuity is protected from creditors in Michigan depends on current law and the facts of each situation. AnnuityTown does not give legal advice. An attorney licensed in Michigan can tell you what applies to you.
Who regulates annuities
Michigan Department of Insurance and Financial Services licenses insurance professionals, oversees insurers and handles consumer complaints in Michigan.
Visit the Michigan Department of Insurance and Financial Services or call 877-999-6442.
Questions to ask before you buy an annuity in Michigan
A licensed professional should answer these clearly. You never need to decide during the first conversation.
How long is the surrender period?
Ask what it costs to take money out early, and how much you can withdraw each year without a charge.
How is interest credited?
For a fixed annuity, ask how long the rate is set. For a fixed indexed annuity, ask about caps, participation rates and spreads.
When does my free-look period end?
Write down the date. Michigan law gives you a set number of days to review the contract and return it.
What backs the guarantees?
Guarantees depend on the issuing insurer’s claims-paying ability. Ask about the insurer’s financial strength ratings.
How will withdrawals be taxed?
Ask how federal and state taxes apply to your situation, and check with a tax professional.
Common questions about annuities in Michigan
Are annuities insured in Michigan?
Annuities are not insured by the FDIC. If an insurer becomes insolvent, the Michigan Life and Health Insurance Guaranty Association may cover up to $250,000 in annuity benefits, subject to conditions and limits. This coverage does not replace a review of the insurer's financial strength, and any contract guarantees depend on the insurer's claims-paying ability. This is general information as of the last review, and laws and limits can change.
Are annuities taxable in Michigan?
How annuity income is taxed in Michigan depends on current state and federal law and on your own situation, and tax rules change often. AnnuityTown does not give tax advice. A tax professional can tell you what applies to you, and a licensed professional can explain how annuities generally work.
How long is the free-look period for annuities in Michigan?
Michigan annuity contracts must give you at least 10 days after you receive the contract to cancel. Cancelling within that time returns your premium. Read your contract for the exact dates, since the period starts on receipt. This is general information as of the last review, and laws and limits can change.
Are annuities protected from creditors in Michigan?
Whether an annuity is protected from creditors in Michigan depends on current law and the facts of each situation, and these laws change. AnnuityTown does not give legal advice. An attorney licensed in Michigan can tell you what applies to you.
Who regulates annuities in Michigan?
The Michigan Department of Insurance and Financial Services regulates insurers and insurance producers, including annuity sales. You can reach its consumer line at 877-999-6442 with questions or concerns. This is general information as of the last review, and laws and limits can change.
Sources used for this page
Important information
This page is for general educational purposes only. AnnuityTown is not a law firm, tax advisor, financial advisor or insurance company, and nothing on this page is legal, tax, investment or insurance advice or a recommendation. State laws, limits and tax rules change often, and this page is not updated continuously, so it may not reflect current law (last reviewed October 28, 2026). Do not rely on it to make a decision.
Before you act, confirm the current rules with your contract, the Michigan Department of Insurance and Financial Services, a tax professional or an attorney. A licensed professional with the licensed partner can also go over the current rules for Michigan on a call.
An easier next step
Get your Michigan annuity questions answered.
Rules change often, so you do not have to keep up with them alone. A licensed professional can go over the current rules in Michigan and the fixed and fixed indexed annuities you are considering. For personal tax or legal advice, talk with a tax professional or attorney. The licensed partner confirms whether it can help in Michigan.
*AnnuityTown is paid per qualified lead by the licensed partner company it connects you with.