State
Life insurance in Michigan
Michigan life insurance rules: $300,000 guaranty protection, a 10-day free look, a one-month grace period, 12% interest on late claims, and no estate tax.
Guaranty association protection
| Guaranty association | Michigan Life & Health Insurance Guaranty Association |
|---|---|
| Life insurance death benefits | $300,000 |
| Cash surrender value | $100,000 |
| Annuity benefits | $250,000 |
| Health benefits | $500,000 for basic hospital, medical and surgical benefits; $300,000 for disability income or long-term care; $100,000 for other health benefits |
| Overall limit | $300,000 per life for all benefits other than basic hospital, medical and surgical |
| Notes | Covered unallocated annuities funding governmental 401(k), 403(b) or 457 plans are protected up to $250,000 per participant; other covered unallocated annuities have a $5,000,000 limit per contract holder. |
| Website | milifega.org |
Policy rules
| Free-look period | At least 10 days after you receive the policy (MCL 500.4015) |
|---|---|
| Grace period | One month for every premium after the first year, plus written notice at least 30 days before coverage ends (MCL 500.4012) |
| Interest on delayed claims | 12% simple interest from 60 days after the insurer receives satisfactory proof of loss if the claim is not paid on time (MCL 500.2006) |
| Community property state | No |
Taxes
| State estate tax | No state estate tax |
|---|---|
| Inheritance tax | No; Michigan's inheritance tax applies only to deaths on or before September 30, 1993 |
Lost policies and unclaimed money
| Unclaimed property office | Michigan Department of Treasury Unclaimed Property |
|---|---|
| Search unclaimed property | unclaimedproperty.michigan.gov |
Regulator
| Insurance regulator | Michigan Department of Insurance and Financial Services |
|---|---|
| Consumer hotline | 877-999-6442 |
| Website | michigan.gov/difs |
| File a complaint | michigan.gov/difs/consumers/complaint |
| Address | P.O. Box 30220, Lansing, MI 48909-7720 |
How your policy is protected if an insurer fails
When a life or health insurer licensed in Michigan is declared insolvent and ordered liquidated, the Michigan Life & Health Insurance Guaranty Association (MLHIGA) protects Michigan residents who own its policies and annuities. It typically transfers the policies to a healthy insurer or keeps them in force itself, up to the limits in the MLHIGA Act. Keep paying premiums so the coverage doesn't lapse.
| Coverage (per insured life) | Michigan limit |
|---|---|
| Life insurance death benefit | $300,000 |
| Life insurance cash surrender or withdrawal value | $100,000 |
| Annuity benefits (present value) | $250,000 |
| Basic hospital, medical and surgical benefits | $500,000 |
| Disability income or long-term care | $300,000 |
| Other health benefits | $100,000 |
| Overall cap | $300,000 for all benefits other than basic hospital, medical and surgical |
Limits are as of October 4, 2026, from the association's FAQ. They apply per insured life per insolvent company: three $100,000 annuities on the same annuitant with the same failed insurer are protected only up to $250,000 in total. Unallocated annuities that fund governmental retirement plans under sections 401(k), 403(b) or 457 of the tax code are covered up to $250,000 per participant, and other covered unallocated annuities face a $5,000,000 limit per contract holder, provided the plan sponsor's principal place of business is in Michigan.
Guaranty associations are not government agencies; they are funded by assessments on the insurers licensed in the state. Treat MLHIGA as a backstop of last resort rather than a reason to buy from a weak company, and be skeptical of any agent who raises it as a selling point (most states prohibit that). Anything above the limits becomes a claim against the failed company's estate. See state life and health guaranty associations and what happens if your life insurance company fails.
Who regulates life insurance in Michigan
The Department of Insurance and Financial Services (DIFS) regulates insurers, banks and credit unions in Michigan. It licenses companies and agents, reviews policy forms and handles consumer complaints. Its toll-free line is 877-999-6442, weekdays from 8 a.m. to 5 p.m.; its office is on the seventh floor of the Mason Building, 530 W. Allegan Street, Lansing. DIFS also has online locators to check whether a company or agent is licensed.
Free look, grace periods and policy rules
- Free look: every individual life policy delivered in Michigan must state on its front page that you can cancel it within at least 10 days after you receive it and get a prompt refund of any premium paid, including policy fees. A returned policy is void from the beginning (MCL 500.4015). See the free-look period: returning a policy for a refund.
- Grace period: policies must allow a grace period of one month for every premium after the first year, during which coverage continues; if the insured dies in the grace period, the overdue premium can be deducted from the benefit. The insurer must also send written notice to your last known address at least 30 days before coverage terminates, unless it collects most of its premiums in person (MCL 500.4012).
- Prompt payment: insurers must tell you in writing what counts as satisfactory proof of loss within 30 days of a claim. A claim paid more than 60 days after satisfactory proof of loss bears 12% simple annual interest from that 60-day mark, and failing to pay on time is an unfair trade practice unless the claim is reasonably in dispute (MCL 500.2006).
Taxes, estates and community property
Michigan has no estate tax. Its inheritance tax applies only to people who inherited from someone who died on or before September 30, 1993, according to the Michigan Department of Treasury. Large estates may still owe federal estate tax; see state estate and inheritance taxes and life insurance.
Michigan is not a community property state.
Finding a lost policy or unclaimed benefits
Check the deceased's bank statements, mail and tax returns for premium payments, ask past employers about group coverage, and file a free request with the NAIC Life Insurance Policy Locator. Benefits that insurers can't deliver are eventually reported to the Michigan Department of Treasury, whose official unclaimed property site lets you search and claim. If the insured lived or worked in Ohio, Indiana or Wisconsin, search those states too. Our guides to how to find a lost life insurance policy and unclaimed life insurance money and state unclaimed property explain each step.
Life insurers based in Michigan
- Jackson National Life is based in Lansing and is best known for annuities.
- Auto-Owners Life is part of Auto-Owners Insurance, headquartered at 6101 Anacapri Boulevard in Lansing.
- Farm Bureau Insurance of Michigan is the life insurer affiliated with the Michigan Farm Bureau.
Where to get help
- Michigan Department of Insurance and Financial Services: 877-999-6442, michigan.gov/difs, P.O. Box 30220, Lansing, MI 48909-7720. Start a complaint from the department's complaint page, and see our guide to how to file a complaint against a life insurer.
- Michigan Life & Health Insurance Guaranty Association: 517-339-1755, milifega.org, 1640 Haslett Road, Suite 160, Haslett, MI 48840-8683.
- Unclaimed property: unclaimedproperty.michigan.gov, the state's official site.
Sources
- milifega.org/FAQ
- nolhga.com/policyholders/how-youre-protected/
- nolhga.com/policyholders/contact-my-guaranty-association/
- michigan.gov/difs
- michigan.gov/difs/about/contact-info
- michigan.gov/difs/consumers/complaint
- legislature.mi.gov/Laws/MCL?objectName=mcl-500-4015
- legislature.mi.gov/Laws/MCL?objectName=mcl-500-4012
- legislature.mi.gov/Laws/MCL?objectName=mcl-500-2006
- michigan.gov/taxes/iit/tax-guidance/tax-situations/inheritance-tax-frequently-asked-ques…
- unclaimedproperty.michigan.gov/
- michigan.gov/treasury
- auto-owners.com/contact-us
- jackson.com/
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