Jan. 23, 2007

Are my index annuities safe or protected by legal reserves should the company itself go bankrupt? The company is currently having financial challenges.

Mary-Ann, Hawaii

Dear Mary-Ann,

Your annuities will be protected by the Hawaii state guarantee fund if the company that underwrote them becomes insolvent. The guarantee fund will provide up to a maximum of $100,000 of present annuity value, or $300,000 in total lifetime benefits, per person, according to the National Association of Insurance Commissioners.

For more information on what happens if an insurer has financial problems, read What happens when your insurance company goes belly-up?

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Disclaimer: We are journalists, not financial planners or insurance brokers. Nothing we say should be interpreted as a recommendation to buy or sell any insurance product, or to provide other financial or legal advice.