Annuities, are they Insured by the FDIC?

Shawn Plummer

CEO, The Annuity Expert

Are Annuities Insured By The FDIC?

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.

Annuities, unlike CDs, 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).

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 Compounding YesNo
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

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

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

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