State
Life insurance in Hawaii
Hawaii life insurance rules: $300,000 guaranty protection for death benefits, a 10-day free look, a 30-day grace period and an estate tax above $5.49 million.
Guaranty association protection
| Guaranty association | Hawaii Life & Disability Insurance Guaranty Association |
|---|---|
| Life insurance death benefits | $300,000 |
| Cash surrender value | $100,000 |
| Annuity benefits | $250,000 |
| Health benefits | $500,000 hospital, medical and surgical; $300,000 disability; $300,000 long-term care; $100,000 other health |
| Overall limit | $300,000 per life (the NAIC lists $500,000 when basic hospital and medical benefits are involved) |
| Notes | Structured settlement annuities are covered up to $250,000; unallocated annuities are not covered. |
| Website | hilifega.org |
Policy rules
| Free-look period | 10 days after receipt for individual life policies (HRS § 431:10-214); 30 days for replacement policies (HRS § 431:10D-505) |
|---|---|
| Grace period | 30 days (HRS § 431:10D-102) |
| Community property state | No |
Taxes
| State estate tax | Yes: applies above the federal exclusion as it stood in 2017 ($5,490,000); rates from 10% to 20% |
|---|---|
| Inheritance tax | No |
Lost policies and unclaimed money
| Unclaimed property office | Hawaii Unclaimed Property Program (Department of Budget and Finance) |
|---|---|
| Search unclaimed property | unclaimedproperty.ehawaii.gov/lilo/prope… |
Regulator
| Insurance regulator | Hawaii Insurance Division, Department of Commerce and Consumer Affairs |
|---|---|
| Consumer hotline | 844-808-3222 |
| Website | cca.hawaii.gov/ins |
| File a complaint | cca.hawaii.gov/ins/filing-a-complaint |
| Address | King Kalakaua Building, 335 Merchant Street, Room 213, Honolulu, HI 96813 |
How your policy is protected if an insurer fails
The Hawaii Life & Disability Insurance Guaranty Association was created by the legislature to protect Hawaii residents when a licensed life, annuity or health insurer becomes insolvent. Every company licensed to sell those products in Hawaii must be a member. When one fails, the association uses assessments on the others to continue coverage and pay covered claims. Often it does this by moving the policies to a healthy insurer. Keep paying premiums so your coverage stays in force.
Limits from the association's FAQ, as of October 4, 2026, consistent with NOLHGA's chart (as of June 1, 2025):
| Coverage | Hawaii limit |
|---|---|
| Life insurance death benefit | $300,000 |
| Life insurance cash surrender or withdrawal value | $100,000 |
| Annuities (withdrawal and cash values) | $250,000 |
| Hospital, medical and surgical insurance | $500,000 |
| Disability insurance and long-term care | $300,000 each |
| Other health insurance | $100,000 |
| Overall cap | $300,000 per life |
The association's FAQ states the $300,000 cap without exception. The NAIC's summary of state guaranty laws (Summer 2024) shows a $500,000 cap when basic hospital and medical benefits are involved, so check with the association if a large health claim is at stake. Limits apply per type of policy, however many of that type you bought from the failed company. Amounts above them become claims against the insurer's estate.
The association is a private entity, not a state agency. Hawaii law prohibits agents and insurers from using it in advertising or as an inducement to buy. Guaranty coverage is a backstop, not a substitute for choosing a well-managed, financially stable insurer. See state life and health guaranty associations and what happens if your life insurance company fails.
Who regulates life insurance in Hawaii
The Insurance Division of the Department of Commerce and Consumer Affairs (DCCA) oversees insurers, producers (agents), self-insurers and captives in Hawaii. It issues licenses, examines the finances of Hawaii-based companies, reviews rate and policy filings and investigates consumer complaints. The division encourages you to talk with one of its investigators before filing a formal complaint, since some problems can be resolved informally.
Free look, grace periods and policy rules
- Free look: HRS § 431:10-214 requires every individual life policy to carry a notice that you can return it within 10 days of receipt for a refund of premium, for any reason. Returning it voids the policy from the start. One Hawaii twist: if the notice says so, the insurer may keep the actual cost of any medical exam it paid for. When a new policy replaces existing coverage, the replacing insurer must give you 30 days to return it for a full refund (HRS § 431:10D-505). See the free-look period: returning a policy for a refund.
- Grace period: HRS § 431:10D-102 requires a 30-day grace period during which the policy stays in force. If the insured dies before an overdue premium is paid, the premium can be deducted from the benefit.
Taxes, estates and community property
Hawaii has its own estate tax. Under HRS § 236E-6, the exclusion for residents equals the federal exclusion computed as if the person died on December 31, 2017. That was $5.49 million, and Hawaii has not raised it since, unlike the federal exclusion of $15,000,000 for 2026 reported by the IRS. Rates under § 236E-8 run from 10% to 20% of the Hawaii net taxable estate. Life insurance you own on your own life counts toward your estate. Policies owned by an irrevocable trust or by another person generally do not. See state estate and inheritance taxes and life insurance.
Hawaii has no inheritance tax and is not a community property state.
Finding a lost policy or unclaimed benefits
The Insurance Division points consumers to the free NAIC Life Insurance Policy Locator. Participating insurers search their records and contact the beneficiary if they find a policy. Then search the Department of Budget and Finance's unclaimed property database for proceeds that insurers turned over to the state. Our guides to how to find a lost life insurance policy and unclaimed life insurance money and state unclaimed property list other places to check.
Where to get help
- Hawaii Insurance Division: 1-844-808-DCCA (844-808-3222), weekdays 7:45 a.m. to 4:30 p.m. Hawaii time; the guaranty association also lists the division at 808-586-2790. King Kalakaua Building, 335 Merchant Street, Room 213, Honolulu, HI 96813; cca.hawaii.gov/ins.
- File a complaint: call an investigator first, then use the division's online complaint form if needed. See how to file a complaint against a life insurer.
- Guaranty association: Hawaii Life & Disability Insurance Guaranty Association, 1003 Bishop Street, Suite 2030, Honolulu, HI 96813; 808-440-8763.
Sources
- hilifega.org/FAQ
- hilifega.org/
- nolhga.com/policyholders/how-youre-protected/
- nolhga.com/policyholders/contact-my-guaranty-association/
- content.naic.org/sites/default/files/model-law-chart-in-10-life-and-health-guaranty-fund…
- cca.hawaii.gov/ins/
- cca.hawaii.gov/ins/filing-a-complaint/
- cca.hawaii.gov/ins/life-insurance-policy-locator/
- capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010-0214.htm
- capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010D-0102.htm
- capitol.hawaii.gov/hrscurrent/Vol09_Ch0431-0435H/HRS0431/HRS_0431-0010D-0505.htm
- capitol.hawaii.gov/hrscurrent/Vol04_Ch0201-0257/HRS0236E/HRS_0236E-0006.htm
- capitol.hawaii.gov/hrscurrent/Vol04_Ch0201-0257/HRS0236E/HRS_0236E-0008.htm
- budget.hawaii.gov/finance/unclaimedproperty/
- unclaimedproperty.ehawaii.gov/lilo/property-search.html
- irs.gov/publications/p555
Rules and limits were checked against these sources on the review date below. Laws change - confirm with the state insurance department or guaranty association.
Profile last reviewed October 4, 2026