Regulation · State guide
Who regulates annuities in Illinois, what protections exist, and where to verify a carrier or producer before you buy.
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An insurance producer recommending an annuity in Illinois must act in your best interest, without placing their own or the insurer's financial interest ahead of yours.
50 Ill. Adm. Code § 3120.50 — Illinois Administrative Code Title 50, Part 3120.50 — duties of insurers and insurance producers in annuity transactionsVerified 2026-08-25
Illinois starts from your federal adjusted gross income to compute state income tax, so the taxable portion of an annuity payment is taxed as ordinary Illinois income.
35 ILCS 5/203 — Illinois Income Tax Act, 35 ILCS 5/203 — base income definedVerified 2026-08-25
Fixed annuities are insurance products, so they are overseen by the state insurance department rather than by the SEC. The department licenses the carriers and the producers who sell them, and it takes consumer complaints.
Every state has a life and health insurance guaranty association that steps in when a member insurer fails. Coverage terms are set by state law and differ by state and by product. Contact the association directly for what applies to a specific contract.
Get a free annuity review or see current rates filed in Illinois.
This page is educational and is not legal, tax, or insurance advice. State rules change. Verify anything here with the Illinois insurance department before acting.