Orman stated on her podcast that annuities are not federally protected like bank deposits by the FDIC. Instead, they are covered by state guaranty associations, which offer a less robust safety net without a dedicated fund like the FDIC's Deposit Insurance Fund (DIF), which held around $161 billion as of Q2 2026. Most states provide up to $250,000 in coverage, with some offering $500,000, while California covers up to 80% of an annuity's value, capped at $250,000.