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Suze Orman warns annuity guarantees depend on insurer balance sheets
Orman says annuities are insurance products, not FDIC-backed deposits, so their safety can vary by the issuing insurer and state guaranty coverage.
Financial advisor Suze Orman says annuity guarantees are only as reliable as the insurer’s ability to pay claims, warning that an annuity promise can weaken if the issuing company runs into trouble, according to Yahoo Finance.
Orman emphasized that annuities are offered by insurance companies, not banks or credit unions, and therefore are not covered the same way as many banking deposit products, which can be protected by federal insurance.
The outlet also noted that, as of Q2 2026, the FDIC’s Deposit Insurance Fund held around $161 billion, with that fund representing about 1.5% of what the FDIC would need to pay out if all covered banks failed at once.
Because annuities are not deposit products and are not federally insured, the article says they are typically covered on a state-by-state basis through state guaranty associations, rather than by the FDIC.