Are Fixed Annuities Protected By FDIC?

Shawn Plummer

CEO, The Annuity Expert

Understanding FDIC Protection for Fixed Annuities

Fixed annuities are not protected by the Federal Deposit Insurance Corporation (FDIC). Instead, they are safeguarded by the issuing insurance company and, in some cases, by state guaranty associations (SGA). Here’s a detailed look at the protection for fixed annuities:

Protection by the Insurance Company

  • Primary Responsibility: The insurance company that issues the fixed annuity is primarily responsible for ensuring the safety and guarantee of the funds.
  • Financial Stability: The reliability of this protection depends on the financial stability and solvency of the insurance company.

Related Reading: Are Fixed Indexed Annuities FDIC Insured?

Protection by State Guaranty Associations (SGA)

  • Additional Safety Net: SGAs provide an additional layer of protection for policyholders in the event that an insurance company fails.
  • Coverage Limits: The coverage amount can vary by state but typically ranges from $100,000 to $300,000 per annuity owner.

Related Reading: What happens to my indexed annuity if the insurance company fails?

Differences from FDIC Protection

  • FDIC Coverage: The FDIC covers bank products like savings accounts and CDs, not annuities.
  • Guarantee Limits: FDIC guarantees up to $250,000 per depositor, per bank, for each account ownership category.

Importance of Research

  • Company Research: It’s crucial to research the financial strength of the insurance company before purchasing an annuity.
  • Understanding Terms: Be clear about the terms of the annuity and the protection offered by your state’s guaranty association.


Fixed annuities offer a layer of protection through the issuing insurance company and state guaranty associations, distinct from FDIC coverage. Understanding the differences and the limits of this protection is key to making informed financial decisions. Contact us today for a free quote.

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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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