How Safe Are Annuities? 
Annuities fall under the category of life insurance , and each state regulates its own life insurance companies . States also each have a Life and Health Guaranty Association which can help back up contracts if life insurance companies fail . Fortunately , life insurance companies almost always sell to another company if they get into financial trouble , and contract guarantees are backed up by the new company . Historically , insurance companies have fared much better than banks . If a worst case scenario would occur and customers are left hanging in a company insolvency , these Life and Health Guaranty Associations would cover according to their state guidelines . This is generally the guaranteed portion of an annuity , up to a certain dollar amount . You can use this website to read more about the protections offered by your state : WEBSITELINK 