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AskIUL · Vermont

How I can get my IUL in Vermont

Clear, careful guidance for families in Vermont.

Who regulates your policy in Vermont

Insurance is regulated state by state, so your policy is governed by Vermont law and overseen by the Vermont Department of Financial Regulation — not by a federal agency. It licenses the agent who sells to you and handles complaints if something goes wrong.

Two things worth doing before you sign: verify your agent's license is active in Vermont, and keep the consumer line (802-828-3302 or 800-964-1784) on hand. Both are free, and an agent not licensed in your state is a hard stop.

Your window to cancel in Vermont

No single fixed free-look period for ordinary individual life appears in 8 V.S.A. Chapter 103 standard policy provisions. DFR’s consumer guide states 10 days after delivery for non-replacement life policies and 30 days when the new policy replaces an existing one; variable life filings must provide a 10-day return right (Regulation I-88-3); replacements require a 30-day return notice (Regulation I-2001-03). Because ordinary life is not a single fixed statutory number, freeLookDays is null.

Because the rule is not a single fixed number here, the period that applies to you is whatever your specific policy states. Find that clause in the contract before you sign, rather than assuming a standard period exists.

If a carrier fails in Vermont

If your carrier became insolvent, the Vermont Life & Health Insurance Guaranty Association is the backstop. In Vermont it covers a death benefit up to $300,000 and cash surrender value up to $100,000. Those are separate ceilings, so an IUL's accumulated cash value is protected independently of the death benefit.

This protection is not a reason to skip carrier due diligence. It caps what you would recover, and a policy designed above that cap leaves the excess exposed.

What Vermont adds to the cost

Vermont levies a state premium tax of 2% on life insurance premiums. That is right at the median of the 50 states covered here. You do not pay it as a separate line item — carriers price it into the premium, which is part of why the same policy design can cost differently across state lines.

Vermont specifics

Vermont Department of Financial Regulation · consumer line 802-828-3302 or 800-964-1784
Guaranty associationsource · checked 2026-07-21
Vermont Life & Health Insurance Guaranty Association · death benefit covered up to $300,000 · cash value up to $100,000
2% on life insurance premiums

Guaranty limits are separate: $300,000 life insurance death benefits, but not more than $100,000 net cash surrender/withdrawal values for life insurance (8 V.S.A. ch. 112). There is also an aggregate cap of $300,000 in benefits with respect to any one life (with a higher aggregate for health benefit plans). (source)

No single fixed free-look period for ordinary individual life appears in 8 V.S.A. Chapter 103 standard policy provisions. DFR’s consumer guide states 10 days after delivery for non-replacement life policies and 30 days when the new policy replaces an existing one; variable life filings must provide a 10-day return right (Regulation I-88-3); replacements require a 30-day return notice (Regulation I-2001-03). Because ordinary life is not a single fixed statutory number, freeLookDays is null. (source)

Life insurers pay the 2% premium tax on premiums and assessments collected in Vermont (not written); reinsurance premiums are excluded. Non-life insurers are taxed at the same 2% rate on premiums written. (source)

Figures above are read from the linked official sources on the dates shown and can change. Confirm current limits with the regulator or a licensed agent before making a decision.

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