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Michigan annuity rules

Who regulates annuities in Michigan, what protections exist, and where to verify a carrier or producer before you buy.

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What Michigan law says

Free-look period

An annuity contract sold in Michigan must give you at least 10 days after you receive it to cancel and get a full refund of your premium.

Mich. Comp. Laws § 500.4073Michigan Insurance Code § 500.4073 — annuity right-to-cancel noticeVerified 2026-08-25

What your agent owes you

A producer recommending an annuity must act in your best interest and may not put their own or the insurer's financial interest ahead of yours.

Mich. Comp. Laws § 500.4155Michigan Insurance Code § 500.4155 — best-interest obligations in annuity recommendationsVerified 2026-08-25

How Michigan taxes annuity income

Michigan starts from your federal adjusted gross income, so the taxable portion of an annuity payment is taxed as Michigan income, though the state's age-based retirement and pension subtraction can reduce the amount for eligible filers.

Mich. Comp. Laws § 206.30Michigan Income Tax Act § 206.30 — taxable income defined; retirement or pension benefitsVerified 2026-08-25

Who regulates annuities in Michigan

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.

Michigan insurance department

The Michigan guaranty association

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.

Michigan Life & Health Insurance Guaranty Association

Compare annuity rates in Michigan

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This page is educational and is not legal, tax, or insurance advice. State rules change. Verify anything here with the Michigan insurance department before acting.