It’s a common denominator for annuity buyers to have second thoughts before investing their money in Annuities. As most of us know, every state has a guaranty fund for insurance contracts. It serves as a safety net to protect policyholders, but there’s a lot that you need to consider before that even comes to play. 

Today we navigate the real purpose of State Insurance Guaranty Funds. What’s the scope of its protection, and who can benefit from it? Does the state guarantee annuities? Let’s find out in this episode.

What You’ll Learn From This Episode:

[1:47] State insurance guaranty funds and how they work

[3:46] You’re not allowed to use the presence of a State insurance guaranty fund in your sales pitch as a reason to buy insurance can contract at any time

[5:36] What if an insurance company goes bankrupt?

[6:04] When banks have far more liabilities than assets, then only a part of those liabilities go bad to wipe out all assets 

[8:05] You cannot use state insurance guaranty funds to market a product 

[17:02] You’re protected by insurance. The state guaranty fund covers the insurance company. 

Key Quotes:

[10:05] “There are very few cases where guaranty associations have been used to cover losses in annuities.”

[15:37] “That is what insurance guaranty funds are for. They’re for catastrophic losses.”

Resources:

Annuity Newsletter

Call Annuity Straight Talk at 800-438-5121 or schedule a call at AnnuityStraightTalk.com