Q: What happens if the annuity issuer goes bankrupt?

What if my structured settlement annuity company goes bankrupt?

A:  If the annuity issuer goes bankrupt, the safety of your structured settlement payments depends on the state's insurance guarantee association and the specific circumstances of the bankruptcy. Most states have insurance guarantee associations that provide limited coverage to annuity holders in case of insolvency. Choosing a highly-rated annuity issuer with a strong credit rating and financial stability is essential to minimize this risk.