Annuities in Texas
Learn the basics of fixed and fixed indexed annuities in Texas: 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 Texas 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 Texas, book a call and a licensed professional can go over what applies today.
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Licensed professionals can only help people in states where they are licensed. The licensed partner confirms whether it can help you in Texas when you reach out.
Here is general background on six topics that come up with fixed and fixed indexed annuities in Texas, 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.
Texas gives you 15 days after delivery to return most individual annuities when the buyer's guide and disclosure document were not provided at or before the application. A replacement annuity carries a 30-day right to return, with a full refund of premiums or considerations paid.
Source: 28 Tex. Admin. Code § 4.2311; Tex. Ins. Code § 1114.053(e)
Yes. Texas adopted the best interest standard for annuity sales under House Bill 1777, effective September 1, 2021. Producers must act in your best interest before recommending an annuity.
Source: Tex. H.B. 1777, as listed in the NAIC state adoption chart
Texas Life and Health Insurance Guaranty Association: $250,000 in present value of annuity benefits for one life, including net cash surrender and net cash withdrawal values, subject to aggregate limits
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: Tex. Ins. Code §§ 463.001 to 463.451
How annuity income is taxed in Texas 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.
Whether an annuity is protected from creditors in Texas depends on current law and the facts of each situation. AnnuityTown does not give legal advice. An attorney licensed in Texas can tell you what applies to you.
Texas Department of Insurance licenses insurance professionals, oversees insurers and handles consumer complaints in Texas.
Visit the Texas Department of Insurance or call 800-252-3439.
A licensed professional should answer these clearly. You never need to decide during the first conversation.
Ask what it costs to take money out early, and how much you can withdraw each year without a charge.
For a fixed annuity, ask how long the rate is set. For a fixed indexed annuity, ask about caps, participation rates and spreads.
Write down the date. Texas law gives you a set number of days to review the contract and return it.
Guarantees depend on the issuing insurer’s claims-paying ability. Ask about the insurer’s financial strength ratings.
Ask how federal and state taxes apply to your situation, and check with a tax professional.
Annuities are not insured by the FDIC, and contract guarantees depend on the issuing insurer's claims-paying ability. If an insurer becomes insolvent, the Texas Life and Health Insurance Guaranty Association may provide limited coverage of up to $250,000 in present value of annuity benefits for one life. That coverage has conditions and limits, so it does not replace a review of the insurer's financial strength. This is general information as of the last review, and laws and limits can change.
How annuity income is taxed in Texas 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.
Texas gives you 15 days after delivery to return most individual annuities when the buyer's guide was not provided at or before application. A replacement annuity carries a 30-day right to return with a full refund of premiums or considerations paid. Check your contract for the exact return instructions. This is general information as of the last review, and laws and limits can change.
Whether an annuity is protected from creditors in Texas depends on current law and the facts of each situation, and these laws change. AnnuityTown does not give legal advice. An attorney licensed in Texas can tell you what applies to you.
The Texas Department of Insurance regulates insurers and agents who sell annuities in Texas. Consumers can reach its help line at 800-252-3439 from 8 a.m. to 5 p.m. Central time, Monday through Friday. This is general information as of the last review, and laws and limits can change.
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 Texas Department of Insurance, a tax professional or an attorney. A licensed professional with the licensed partner can also go over the current rules for Texas on a call.
Rules change often, so you do not have to keep up with them alone. A licensed professional can go over the current rules in Texas 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 Texas.
*AnnuityTown is paid per qualified lead by the licensed partner company it connects you with.