State guaranty association coverage lookup

How to use it

Choose the state where you live from the menu. The tool then shows:

• The name of that state's life and health guaranty association.
• The recorded limits for life insurance death benefits, cash surrender value and annuity benefits, plus an overall limit per person.
• A note on anything unusual in the state's rules.
• Links to the association's website and to the state's page on this site.

Only limits that have been recorded for the state appear. If none have, the tool says so.

How the math works

There is no calculation. The tool looks up the state you chose and displays the facts stored on its state page. Those figures are taken from the state guaranty association's own website or from the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA), and each state page names its sources and the date the limits were checked.

Coverage generally follows where you live, not where the insurer is based. A guaranty association steps in when a court declares a life insurer insolvent and places it in receivership, and the process can end in insurer liquidation. A low rating alone does not trigger it.

Hypothetical example, not any state's actual limits: suppose a state protects death benefits up to $300,000 and cash surrender value up to $100,000, with a $300,000 overall limit per person. A policyholder whose insurer failed and who held a $450,000 death benefit would be protected up to $300,000. As the tool's note says, amounts above the limits may be lost.

What it assumes

• You live in the state you choose. The tool does not look up the state of the insurer or of a policy's issue.
• The limits are those recorded on the state page as of the date shown there. Associations and legislatures change limits, so confirm on the association's site.
• The tool lists the four limit types above. A state may have additional limits, such as for health benefits or structured settlements, that the tool does not display.
• Notes about unusual rules, such as a coverage percentage, appear exactly as recorded for the state.

Where it stops being right

• Guaranty coverage is a safety net, not a reason to choose a weak insurer. The tool warns that claims can be delayed during an insurer's rehabilitation and that amounts above the limits may be lost.
• It does not say whether your policy or company is covered, how a particular failure would be handled, or how limits apply when you own several policies. The association decides at the time.

For how the system works, see state life and health guaranty associations and what happens if your life insurance company fails. The life insurer comparison tool lets you check financial-strength ratings before you buy. The guaranty association entry defines the term.