State
Life insurance in Iowa
Iowa life insurance rules: $300,000 guaranty protection on death benefits, a $350,000 per-life cap, a 10-day free look and no inheritance tax since 2025.
Guaranty association protection
| Guaranty association | Iowa Life & Health Insurance Guaranty Association |
|---|---|
| Life insurance death benefits | $300,000 |
| Cash surrender value | $100,000 |
| Annuity benefits | $250,000 |
| Health benefits | $500,000 health benefit plans (hospital, medical-surgical, major medical); $300,000 disability income; $300,000 long-term care; $100,000 other health |
| Overall limit | $350,000 per life ($500,000 if health benefit plan benefits are involved) under Iowa Code § 508C.3 |
| Notes | Retirement-plan annuities are covered up to $250,000 per participant; employer plan group annuities and GICs up to $5 million; $5 million cap for one owner of multiple individual life policies. |
| Website | ialifega.org |
Policy rules
| Free-look period | 10 days for individual life policies; 30 days for replacement policies (Iowa insurance rules, per NAIC) |
|---|---|
| Community property state | No |
Taxes
| State estate tax | No state estate tax |
|---|---|
| Inheritance tax | No (Iowa's inheritance tax does not apply to deaths on or after January 1, 2025) |
Lost policies and unclaimed money
| Unclaimed property office | Great Iowa Treasure Hunt (Iowa State Treasurer) |
|---|---|
| Search unclaimed property | greatiowatreasurehunt.gov |
Regulator
| Insurance regulator | Iowa Insurance Division |
|---|---|
| Consumer hotline | 877-955-1212 |
| Website | iid.iowa.gov |
| File a complaint | iid.iowa.gov/consumers/filing-complaints |
| Address | 1963 Bell Avenue, Suite 100, Des Moines, IA 50315 |
How your policy is protected if an insurer fails
The Iowa Life & Health Insurance Guaranty Association was created by the legislature in 1987. All insurers licensed to sell life insurance, health insurance or annuities in Iowa must belong to it. The association is funded by those member insurers, not by the state. If a member fails, it can have a sound insurer take over the policies, continue them directly or arrange replacement coverage, sometimes in a joint plan with other states' associations. Keep paying premiums.
Limits from the association's FAQ and Iowa Code § 508C.3 (2026 code), as of October 4, 2026, consistent with NOLHGA's chart (as of June 1, 2025):
| Coverage | Iowa limit |
|---|---|
| Life insurance death benefit | $300,000 per life |
| Life insurance net cash surrender or withdrawal value | $100,000 per life |
| Annuities owned individually (present value, including cash values) | $250,000 per owner per insurer |
| Health benefit plans (hospital, medical-surgical, major medical) | $500,000 |
| Disability income and long-term care | $300,000 each |
| Other health coverage | $100,000 |
| Overall cap | $350,000 per life, or $500,000 when health benefit plan benefits are involved |
Iowa's overall cap is unusual. Most states stop at $300,000 per person for combined life, annuity and non-major-medical health benefits. Iowa Code § 508C.3 caps the total across individual policies and retirement-plan annuities at $350,000 per life, rising to $500,000 only when health benefit plan claims are involved. The NAIC's 2024 summary describes the cap simply as $500,000 per individual. The statute is the controlling text.
Annuities bought through a 401(k), 403(b) or 457 plan are covered up to $250,000 per participant. Employer-plan group annuities and guaranteed investment contracts are covered up to $5 million. Three $100,000 annuities owned with the same failed insurer, the association notes, are protected for $250,000 in total.
The association is a private entity, not a state agency. Iowa law prohibits agents and insurers from mentioning it in advertising or using it as an inducement to buy. It is a safety net, not a substitute for choosing a well-managed, financially stable company. See state life and health guaranty associations and what happens if your life insurance company fails.
Who regulates life insurance in Iowa
The Iowa Insurance Division regulates insurers, agents and securities firms in Iowa. It licenses companies and producers, examines insurers based in the state and investigates consumer complaints. Its online complaint form is the way to request an investigation of a company or agent.
Free look, grace periods and policy rules
- Free look: Iowa's insurance rules require a 10-day free-look period for individual life policies and 30 days when a new policy replaces existing coverage, according to the NAIC's state chart of life insurance disclosure laws (Fall 2023). Look for the notice on your policy's first page. See the free-look period: returning a policy for a refund.
- Grace period: read your policy's grace period clause for the time allowed to pay a late premium, and call the insurer before it runs out.
Taxes, estates and community property
Iowa has no estate tax, and its inheritance tax is gone. According to the Iowa Department of Revenue, the inheritance tax does not apply to deaths on or after January 1, 2025. Only the federal estate tax can apply, with a $15,000,000 per-person exclusion in 2026, according to the IRS. See state estate and inheritance taxes and life insurance. Iowa is not a community property state.
Finding a lost policy or unclaimed benefits
Start with the free NAIC Life Insurance Policy Locator. Participating insurers search their records and contact the beneficiary if they find a policy. Then search the State Treasurer's Great Iowa Treasure Hunt, Iowa's official unclaimed property site, for proceeds that insurers turned over to the state. Our guide to how to find a lost life insurance policy covers other places to look.
Life insurers based in Iowa
Four of the 100 largest U.S. life insurance groups are based in the Des Moines area:
- Principal Financial Group, headquartered in Des Moines.
- Farm Bureau Financial Services, the West Des Moines-based Farm Bureau insurer.
- Sammons Financial Group, parent of Midland National, in West Des Moines.
- Athene, an annuity-focused insurer owned by Apollo, with U.S. headquarters in West Des Moines.
Where to get help
- Iowa Insurance Division: 515-654-6600, or 877-955-1212 toll-free within Iowa; 1963 Bell Avenue, Suite 100, Des Moines, IA 50315; iid.iowa.gov.
- File a complaint: use the division's online complaint form to request an investigation. Include your policy and claim numbers and copies of correspondence. See how to file a complaint against a life insurer.
- Guaranty association: Iowa Life & Health Insurance Guaranty Association, 700 Walnut Street, Suite 1300, Des Moines, IA 50309-3899; 515-248-5712.
Neighboring states: Minnesota, Wisconsin, Illinois, Missouri, Nebraska and South Dakota.
Sources
- ialifega.org/FAQ
- ialifega.org/
- legis.iowa.gov/docs/code/508C.pdf
- nolhga.com/policyholders/how-youre-protected/
- content.naic.org/sites/default/files/model-law-chart-in-10-life-and-health-guaranty-fund…
- iid.iowa.gov/
- iid.iowa.gov/about/contact
- iid.iowa.gov/consumers/filing-complaints
- content.naic.org/sites/default/files/model-law-chart-li-30-life-insurance-disclosure-pro…
- revenue.iowa.gov/taxes/tax-guidance/inheritance-tax/introduction-iowa-inheritance-tax
- iowatreasurer.gov/for-citizens/great-iowa-treasure-hunt
- greatiowatreasurehunt.gov/
- 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