Are annuities insured?

The legal name on the issued contract identifies the insurance company responsible for its guarantees. An annuity bought through a bank, brokerage, or agent does not become a bank deposit because of where it was sold.

The FDIC expressly lists annuities among financial products it does not insure, including when they are purchased at an FDIC-insured bank. FDIC insurance applies to eligible deposits at insured banks; it does not back an insurance company's annuity obligation.

The contract controls which values or payments the insurer guarantees and which outcomes are not guaranteed. Read definitions, benefit provisions, riders, surrender terms, and any conditions together.

Financial strength matters because guarantees rely on the issuing insurer's claims-paying ability. State insurance departments license insurers, review financial filings, monitor solvency, and can intervene when an insurer is financially troubled.

Every state has a life and health insurance guaranty mechanism. It is not the same as FDIC insurance and it is not a blanket promise that every contract value will be paid in every situation.

If a member insurer is placed into liquidation, the applicable state guaranty association may continue covered benefits or provide protection within that state's statutory limits and exclusions. Eligibility can depend on residence, the issuing company's membership, contract type, and which portions of the contract the insurer guaranteed.

• Confirm the full legal name of the issuing insurer on the contract and current statement.
• Separate guaranteed terms from illustrations, index performance, or values whose risk you bear.
• Use the NAIC directory to reach your state insurance department rather than relying on a salesperson's summary.
• Ask the state guaranty association directly about current law and a specific coverage question.