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Are Annuities Insured?

March 22, 2023

Blueprint Income Team

When it comes to financial security in retirement, annuities are often touted as a safe and reliable investment. But are annuities really insured against loss? In this article, we'll take a look at how annuities are protected and what coverage limits are in place by state.

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So, let's dive in and find out if annuities are protected and what measures are taken to protect your retirement income.

Are Annuities Protected?

When it comes to annuities, the question of whether or not they are protected is an important one. After all, annuities are often used as a retirement planning tool, and you need to know that your hard-earned savings will be safe.

So, are annuities protected? The answer is yes – but it's important to understand the different types of protection available and what limits apply in your state.

Each state has the ability to set up the guarantee funds in the way it chooses, and there are differences from state-to-state in terms of the cost to insurers and how much protection annuity owners receive.

A state guaranty fund is administered by each U.S. state to protect insurance policyholders who reside in that state if an insurance company defaults on benefit payments or becomes insolvent. These state funds act as a form of insurance for annuities. Most states operate guarantee funds with money obtained from assessments on insurance companies.

Most states protect annuity policyholders up to at least $250,000, but some states have much higher limits. For example, New York protects up to $500,000 per policy per insurer.

Coverage Limits by State

Here's a look at the coverage limits for annuities in each state, as set by the state's insurance guaranty association.

Coverage Limit - $250,000

Alabama, Alaska, Arizona, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wyoming

Coverage Limit - $300,000

Arkansas, North Carolina, Oklahoma, South Carolina, Wisconsin 

Coverage Limit - $500,000

Connecticut, New Jersey, New York, Washington


When making such an important decision as to whether or not to purchase an annuity, it is critical that you understand the level of protection that is offered. Annuities can be complex financial products and there can be a great deal of variation in the level of protection they offer. As a general rule, when making such an important decision as to whether or not to purchase an annuity, it is critical that you understand the level of protection that is offered.

It is important to understand the difference between these types of annuities, as well as the different levels of protection they offer. For your further reference is this link to the National Association of Insurance Commissioners.


Blueprint Income Team

We are a team of finance, insurance, and actuarial professionals working to make it easier for everyone to achieve a steady and comfortable retirement. We write about annuities (the good and the bad) and provide strategies to help Americans prepare for retirement.