Life insurance guide
Annuities
Annuities can turn savings into income, but they’re complex. Here’s how the main types work, what fees to watch, and the best-interest rules that apply.
Blake Insurance Group is an independent agency serving clients by phone, email, and online in states where we are licensed; coverage depends on the insurer, the policy, and underwriting.
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How annuities work
An annuity is a contract with an insurer that can provide income now (immediate) or later (deferred). The NAIC describes fixed annuities with a minimum guaranteed rate, variable annuities whose value depends on investments, and indexed annuities that credit interest based on a market index with a minimum guarantee. Deferred annuities often have surrender charges for several years, and the NAIC’s buyer’s guide says free-look periods are usually 10 to 30 days. Forty-eight states have adopted the NAIC’s 2020 best-interest standard, which requires recommendations to be in your best interest.
Annuity types at a glance
| Type | How it works |
|---|---|
| Immediate | Income starts within one year |
| Deferred | Income starts later; money grows first |
| Fixed | Minimum guaranteed interest rate |
| Variable | Value depends on investment subaccounts; owner bears investment risk; registered with the SEC |
| Indexed | Interest tied to a market index, with a minimum guarantee |
Source: NAIC (Sep. 2026).
Many deferred annuity contracts let you withdraw about 10% a year without a surrender charge, according to the NAIC’s buyer’s guide, and variable annuity sellers must be registered with FINRA.
The best-interest standard
The NAIC’s 2020 revision to its Suitability in Annuity Transactions Model Regulation requires anyone recommending an annuity to act in the consumer’s best interest, using reasonable diligence, care, and skill, and not putting the producer’s financial interest ahead of the consumer’s. The NAIC reported 48 states had adopted it as of February 2025. Ask your agent to explain why a specific annuity fits your goals, what it costs, and what you’d give up by surrendering it early.
Example insurer
Athene, owned by Apollo Global Management since 2022, sells annuities, including multi-year guaranteed, fixed indexed, and registered index-linked annuities, not individual life insurance. AM Best rates Athene’s U.S. insurers A+ (Superior) as of August 2026 and calls Athene the largest seller of individual retail annuities in the U.S.
Comparing annuities
Before buying an annuity, compare the surrender charge schedule, any annual fees and rider costs, the guaranteed minimum rate, and how indexed crediting caps or participation rates work. Delaware’s Life Guide warns that variable annuities have been sold abusively to seniors, citing high commissions, fees, and surrender penalties. State guaranty associations also protect annuity values up to limits, commonly $250,000, according to NOLHGA.
Free look and contestability
Most states give you a free-look period, often 10 days and up to 30 days in some cases, to cancel a new policy for a refund; the NAIC’s state chart lists 10 days for individual life in many states. For the first two years, insurers can generally contest a claim for a material misstatement on the application, and a suicide in that period typically limits the benefit to a refund of premiums, according to the North Carolina and South Carolina insurance departments. Answer application questions completely.
Reading financial strength ratings
Financial strength ratings from AM Best reflect an insurer’s ability to pay claims. A++ and A+ are “Superior,” A and A- are “Excellent,” and B++ and B+ are “Good.” Ratings can change, so check the current rating and the specific issuing company named on your policy.
If an insurer fails
If a life insurer fails, state guaranty associations protect policyholders up to limits set by state law, typically $300,000 in death benefits and $100,000 in cash value per person, with higher limits in some states, according to NOLHGA. Coverage applies per person for each failed insurer.
Replacing a policy
If you’re thinking of replacing a policy, regulators advise caution. Delaware and Alaska note that a new policy restarts the two-year contestability and suicide periods, and the NAIC says not to cancel your current coverage until the new policy is issued and you’ve reviewed it. Many states give a longer free look on replacement policies, often 20 to 30 days, according to the NAIC’s state chart. You may be able to add coverage or change your existing policy instead.
The life insurance market
LIMRA reports that U.S. individual life insurance premium from new sales set a record above $17.5 billion in 2025, with whole life at 37% of premium, indexed universal life 25%, term 17%, variable universal life 15%, and fixed universal life 6%. The 2026 Insurance Barometer from LIMRA and Life Happens found 52% of Americans own life insurance, 38% of adults say they need it or need more, and about three-quarters overestimate its cost.
Owning more than one policy
You can own more than one life insurance policy, and many people combine employer coverage with an individual policy or layer term policies of different lengths. The NAIC and Delaware advise not canceling an existing policy until a new one is issued, since a new policy restarts the two-year contestability period. Insurers consider your total coverage when underwriting, and guaranty association limits apply per person for each failed insurer.
Finding a lost policy
If you’re trying to find a deceased relative’s policy, the NAIC’s free Life Insurance Policy Locator lets you submit a request that participating insurers search; if a policy is found and you’re the beneficiary, the company contacts you.
Beware “state program” mailers
There’s no state-run “state regulated life insurance program.” The Minnesota Attorney General warns that lead generators send mailers that look like government notices but aren’t affiliated with the government, and notes that since all insurance is state-regulated, “state-regulated” coverage is nothing special. The District of Columbia’s insurance regulator warned about a final expense mailer that it said wasn’t sanctioned by the government and could lead to your information being sold to agents. The NAIC’s advertising model rule bars life insurance ads that imply a connection to a government program.
Social Security death benefits
Social Security pays a one-time lump-sum death payment of $255 to a surviving spouse who lived with the deceased, or in some cases to an eligible child, and you must apply within two years of the death. Monthly survivor benefits may go to a widow or widower from age 60 (50 if disabled), to a widow or widower caring for the deceased’s child under 16 or disabled, to unmarried children under 18 (19 if still in high school), and to dependent parents 62 or older. The $255 payment won’t cover much of a funeral, which is one reason people buy final expense coverage.
What an independent agency does
An independent insurance agency is licensed to sell policies from several insurance companies. Instead of quoting one company's products, an independent agent can compare options from the insurers the agency represents, explain the differences in coverage, and help you re-shop at renewal. The insurance company, not the agent, makes underwriting and claim decisions.
Blake Insurance Group is an independent agency. We work with clients by phone, email, and online in states where we are licensed, and we will tell you which insurers we can quote for your situation.
How we work
Blake Insurance Group serves clients by phone, email, and online in states where we are licensed. The insurers and plans we can offer depend on our appointments and your location; a company named on this page may not be available through us.
How to verify an insurer or agency
Before buying through any website or app, confirm who is selling you the policy and who will issue it:
- Find the licensed agency or insurer named in the site's footer, terms, or license page.
- Look up the agency or producer on your state insurance department's license search, or through the National Insurance Producer Registry (NIPR).
- Look up the insurer on your state insurance department's company search to confirm it is authorized in your state.
- Save the insurer's name and policy number once issued, since that is who handles claims.
A legitimate service will make this information easy to find. Be cautious if you cannot identify the licensed entity.
Sources
We checked the facts on this page against the sources below in October 2026. Plans, prices, and rules change, so confirm current terms before you buy.
- NAIC: Annuities (Sep. 2026)
- NAIC: Annuity suitability and best interest standard (Feb. 2025)
- NAIC Buyer's Guide for Deferred Annuities (via NJ DOBI)
- AM Best: Athene ratings (Aug. 2026)
- NAIC: Life insurance (Nov. 2025)
- NAIC Life Insurance Buyer's Guide (2018, via Kentucky DOI)
- Delaware Department of Insurance: Life Guide
- NAIC: Life insurance disclosure provisions by state (chart LI-30)
- NOLHGA: How you're protected, coverage levels by state (Jun. 2025)
- LIMRA: U.S. individual life insurance sales record in 2025 (Mar. 2026)
- LIMRA and Life Happens: 2026 Insurance Barometer
- NAIC presentation: Accelerated underwriting (Dec. 2019)
- North Carolina Department of Insurance: Life insurance FAQs
- South Carolina Department of Insurance: Life insurance FAQ
What to have ready for a life insurance quote
These details help an agent quote accurately.
- Age and date of birth. Pricing is set by age.
- Health and medications. For underwriting questions.
- Tobacco and nicotine use. Including vaping.
- Coverage amount and length. What your family would need and for how long.
- Beneficiaries. Who should receive the money.
Annuities FAQs
How much does life insurance cost?
It depends on age, health, tobacco use, coverage amount, and policy type; term is usually the least expensive per dollar of coverage.
Do I need a medical exam?
Not always. Many insurers use accelerated underwriting with database checks, and guaranteed-issue final expense plans ask no health questions.
Can I cancel a new policy?
Most states give a free-look period, often 10 days, to cancel for a refund.
What if the insurer fails?
State guaranty associations protect death benefits up to set limits, typically $300,000 per person.
Related guides
Important information
Independent agency. Blake Insurance Group LLC is an independent insurance agency. Licensed insurance producer NPN 16117464. Licensed states: AZ, AL, TX, CA, NY, OH, FL, NC, VA, GA, OK, NM, IA, KS, MI, NE, SC, SD, WV, IL, NJ, PA, TN, and WA. Which insurance companies we can quote depends on our current appointments, the product, and your state. Mentioning a company on this page does not mean we represent it.
Policy details. Figures on this page were checked against the listed sources in October 2026. Benefits, graded periods, and prices vary by insurer, state, age, and health; the policy controls.
Company names. Company names are trademarks of their owners. Blake Insurance Group isn’t affiliated with the companies described unless a partner link says so, and a company named here may not be available through us. Ratings and products were checked in October 2026 and can change. We compare companies; we don’t rank them.
Coverage terms. Descriptions are general. The policy contract controls what is covered.
Availability. Coverage, prices, and eligibility vary by company, state, and applicant, and are subject to underwriting. The issued policy controls.
Your next step
Request a quote, and a licensed agent will compare life insurance options available to us for your age, health, and budget.
