Free-look period
Washington gives you 10 days after delivery to return an individual annuity. A replacement annuity carries a 20-day return period.
Source: RCW 48.23.380; WAC 284-23-455
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Annuities in Washington
Washington annuity guide
Learn the basics of fixed and fixed indexed annuities in Washington: 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 Washington 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 Washington, 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 Washington when you reach out.
Annuity topics to know in Washington
Here is general background on six topics that come up with fixed and fixed indexed annuities in Washington, 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
Yes. Washington's best interest revisions for annuity sales took effect January 1, 2024. Producers must act in your best interest before recommending an annuity.
Source: WAC 284-17-265 (Sales of Annuities)
Guaranty association coverage
Washington Life and Disability Insurance Guaranty Association: $500,000 in present value of annuity benefits per contract owner, with a $500,000 total limit per life for all annuity contracts from one insurer
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: RCW 48.32A.005 to 48.32A.902
Taxes on annuity income
How annuity income is taxed in Washington 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 Washington depends on current law and the facts of each situation. AnnuityTown does not give legal advice. An attorney licensed in Washington can tell you what applies to you.
Who regulates annuities
Washington Office of the Insurance Commissioner licenses insurance professionals, oversees insurers and handles consumer complaints in Washington.
Visit the Washington Office of the Insurance Commissioner or call 800-562-6900.
Questions to ask before you buy an annuity in Washington
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. Washington 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 Washington
Are annuities insured in Washington?
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 Washington Life and Disability Insurance Guaranty Association may provide limited coverage of up to $500,000 in present value of annuity benefits per contract owner. 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.
Are annuities taxable in Washington?
How annuity income is taxed in Washington 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 Washington?
Washington gives you 10 days after delivery to return an individual annuity. A replacement annuity carries a 20-day return period. Check your contract for the exact return instructions and the refund terms. This is general information as of the last review, and laws and limits can change.
Are annuities protected from creditors in Washington?
Whether an annuity is protected from creditors in Washington depends on current law and the facts of each situation, and these laws change. AnnuityTown does not give legal advice. An attorney licensed in Washington can tell you what applies to you.
Who regulates annuities in Washington?
The Washington Office of the Insurance Commissioner regulates insurers and producers who sell annuities in the state. Consumers can call the office at 800-562-6900. This is general information as of the last review, and laws and limits can change.
Sources used for this page
- NAIC annuity disclosure provisions chart (1/24)
- NAIC life and health guaranty fund laws chart (6/24)
- Washington Office of the Insurance Commissioner
- Washington Life and Disability Insurance Guaranty Association FAQ
- RCW 48.18.430, annuity exemption from execution
- Washington Department of Revenue, income tax
- NAIC state adoption of annuity best interest standard
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 Washington Office of the Insurance Commissioner, a tax professional or an attorney. A licensed professional with the licensed partner can also go over the current rules for Washington on a call.
An easier next step
Get your Washington 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 Washington 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 Washington.
*AnnuityTown is paid per qualified lead by the licensed partner company it connects you with.