One frequent question regarding investment in annuities is whether or not annuities are protected by the FDIC. So brief history lesson. The Federal deposit Insurance Corporation or FDIC was established by Congress to protect and guarantee some deposits made in the US banks that are FDIC insured up to specific limit. And so the short answer is no, since an annuity is not a bank deposit annuities are not protected by the FDIC. However, annuities are protected by insurance guarantee associations. Now, every state has an insurance guarantee association that protects policyholders if insurance companies go bankrupt and annuities are one of the things that these associations protect. Now, here’s the thing. Every state has specific limitations on the amount of an annuity that can be protected. So, before investing in an annuity, it is best to take the time to discuss your options with your financial planner. So you can understand how well your potential investment will be protected.

We’d be happy to review your insurance coverage options with you! Give us a call at 440-729-4042 or visit https://luczkowskiagency.com.