Iowa insurance guaranty association - Protection limits for annuities, life insurance, and more

How does the state of Iowa protect me if my annuity or life insurance company fails?
If you are a resident of the state of Iowa and purchased an annuity or life insurance policy from an insurance company licensed in Iowa that has now failed, you have some important protections in place.
• There's a Guaranty Association that covers individual and group life and health insurance policies, as well as individual annuities. It also covers long-term care insurance and disability policies.
• You would receive a notification from the Guaranty Association or the court-appointed receiver that your insurance company is insolvent and being liquidated. Often, another insurance company steps in to pick up and service your policy.
• It's important to know that your full policy value might not be protected. The amounts are legally set, and are usually $300,000 per life for life insurance and LTC. Annuities are usually covered to $250,000 total for the net present value of all payments or cash value.
• You should still do your due diligence on the soundness of any insurance company you intend to purchase a policy from, but it's good to know that there are some protections in place for consumers if the insurance company gets into trouble. Please reach out if you have further questions about insurance or annuity protections.
Sync ID: MB01Z0JHRUSG1CN