Do State Guaranty Funds Protect Your Annuity Money?

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Welcome to Q&A Friday. I'm your host

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Stan the Annuity Man, America's annuity

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agent licensed in all 50 states. Today's

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question is a really good one. What is a

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state guarantee fund coverage for

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annuities? What's the protection it

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provides for annuities? Well, before we

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talk about that, let's talk about what

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the state guarantee fund is not. It is

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not FDIC coverage. It is not SIPC

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coverage. Those are the granddaddies of

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them all. Okay. Um, fixed annuities

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are what the state guarantee fund

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covers. Fixed annuities would be

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multi-year guarantee annuities, fixed

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index annuities, single premium

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immediate annuities, qualified longevity

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annuity contracts, deferred income

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annuities, traditional fixed annuities,

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etc. Um, and state guarantee funds. Each

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one's different. Each state regulates

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the fixed annuities in that state and

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they have a state guarantee fund that

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covers you up to a certain dollar amount

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in in case something goes wrong with the

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annuity company. Now you can check out

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your specific state at Write this down

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www.nolga.com n ogga.com

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nolga.com

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and you'll see a dropown where you can

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pick your state and then go to I think

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question seven or eight under FAQs,

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frequently asked questions. They're all

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kind of laid out the same and it will

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give you your state guarantee coverage

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and the specifics. Some states cover a a

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total dollar amount. Some states cover

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um per company, per owner. So, there's

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no uniformity really. It just depends on

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your state. But let's get to a bigger

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point on the state guarantee fund. You

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should never base your decision on state

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guarantee funds. You should base your

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decision on the claims paying ability of

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the annuity company, the life insurance

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company that's issuing the annuity. That

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that really is where the rubber meets

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the road right there. Not a state

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guarantee fund. Now, if you want to wear

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belt and suspenders as my uncle Miller

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did when he went to the family reunion

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and make sure the pants are going to

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stay up and you can, you know, go to the

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nolhga.com for your state, check out the

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state guarantee fund and then every

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purchase be underneath that. Um, the

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accumulation value needs to be

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underneath that in case something goes

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wrong. But in my opinion,

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you shouldn't place a lot of weight on

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it. And it is illegal for an agent to

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lead with the state guarantee fund or to

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mention the state guarantee fund as part

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of the sales pitch. That should tell you

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all you really need to know. Yes, we can

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discuss it if you bring it up. And in

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this case, in a video, it's informative,

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not attached to any type of sale or

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perceived sale or or any type of

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product. You just need to know and you

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need to know the address and you need to

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know the rules. But you also need to

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know from the number one agent on the

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planet, that would be me, is to not

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place a lot of faith in that. Not to put

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the state guarantee funds down, but I

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think the true um protection that you

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have is the annuity industry itself

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policing itself and not depending on the

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state guarantee fund. So that's the

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question about the annu the state

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guarantee fund and the protection for

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annuities. My name is Stan the annuity

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man. I'm America's annuity agent. Have a

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great weekend and we'll see you next