Annuities, are they Insured by the FDIC?

Shawn Plummer

CEO, The Annuity Expert

The FDIC (Federal Deposit Insurance Corporation) is an independent agency of the United States government that protects depositors against loss in case of financial institution failure. One question you may be asking yourself is if annuities are insured by the FDIC. They are not, but there are other ways to protect your assets and make sure they stay safe should something happen to your company or bank.

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Are Annuities Insured By The FDIC?

Annuities are not FDIC-insured, but they do offer comparable safeguards for your money. The claims-paying capability of the insurance company guarantees an annuity.

Insurance companies are members of each state’s insurance guarantee association, which ensures that policyholders are protected if their company goes bankrupt and fails to fulfill its obligations to customers. Each state’s insurance guarantee association protects consumers in the unlikely event that their insurance provider fails and defaults on its duties to clients (limits vary by state).

Are Annuities Protected By Fdic
Annuities, Are They Insured By The Fdic

CDs and Annuities At a Glance

FeatureFixed AnnuityCD
Who OffersInsurance CompanyBanks
Premium Amounts$2,500 to $1 Million$500 – No Maximum
Terms2 Years to 20 Years3 Months to 7 Years
Guaranteed Interest RatesUp to 3.25%Up to 1.25%
Triple CompoundingYesNo
Principal ProtectionYesYes
Can Lose Money?NoNo
Liquid After Term100%100%
How Are Gains Taxed?Tax-DeferredTaxed Annually
Annual LiquidityUp to 10% AnnuallyNo Liquidity
Who Protects My Money?Insurance Company/SGAFDIC
Accepts IRAYesNo
Accepts 401kYesNo
Death BenefitLump-SumLump-Sum
Are Annuities Insured By Fdic

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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