State guaranty associations protect annuity owners if an insurance company becomes insolvent. Coverage limits vary by state but typically range from $100,000 to $500,000 per person per company. Most states provide $250,000 in annuity coverage. Guaranty associations are funded by assessments on insurance companies.
Key Points
- State guaranty associations protect annuity owners if insurer becomes insolvent
- Coverage limits vary by state: typically $100,000-$500,000
- Most states: $250,000 in annuity coverage
- Funded by assessments on insurance companies
- An independent agent can help you understand guaranty association coverage in your state