Are Annuities Insured by the State?

Are you wondering how safe your annuity really is and what happens to your life savings if the insurance company goes under? While annuities are not FDIC-insured like bank CDs, they are heavily regulated at the state level and backed by individual State Guaranty Associations (SGAs)—the insurance industry's equivalent of the FDIC. In this clear and unfiltered video, Shawn from The Annuity Expert breaks down exactly how state regulation and Guaranty Associations protect annuity buyers. He explains that every annuity contract must be individually approved by a state's Department of Insurance, warning buyers to steer clear of products not approved in all 50 states (and noting why New York operates under its own strict, isolated rules). Shawn details the specific coverage limits enforced by State Guaranty Associations, which typically cap coverage at $250,000 per owner, per insolvent insurance company. He outlines a critical risk mitigation strategy: if you have $1,000,000 to place into annuities, never put the full amount into a single carrier. By splitting your deposit across four or five top-tier A-rated carriers ($200,000 to $250,000 each), 100% of your principal remains fully protected under state guaranty limits. Finally, Shawn notes that while major carrier insolvencies are exceptionally rare—far rarer than bank failures—sticking with long-standing, A-rated insurance companies provides the ultimate peace of mind. 👉 Read our full state-by-state guide on State Guaranty Association coverage limits here: https://www.annuityexpertadvice.com/life-insurance/state-guaranty-association/ 📞 Call our team for free, no-obligation advice to safely evaluate your annuity protection options at: 770-755-1565 ⏱️ Video Chapters: 0:00 - Intro: Are annuities insured by the state? 0:19 - State Insurance Departments & 50-State Contract Approval 1:31 - Why New York annuity rules are completely different 2:57 - What is a State Guaranty Association (SGA)? 4:49 - Coverage Limits: Understanding the $250,000 per carrier cap 5:36 - The Multi-Carrier Strategy: How to protect $1,000,000+ across SGA limits 6:19 - Carrier Insolvency Reality: Why annuity companies rarely go under 7:12 - Final Verdict: How to get objective, pressure-free advice from The Annuity Expert