What is the maximum amount for the present value of benefits from annuities according to the Guaranty?

The maximum amount for the present value of benefits from annuities according to the Guaranty is $250,000. This figure is significant in the context of state guaranty associations, which are designed to protect policyholders in the event that an insurance company becomes insolvent. The present value of benefits from annuities represents the total amount for which policyholders are covered under these guaranty programs, providing a safety net for individuals relying on annuity payments.

This limit applies specifically to annuity contracts, ensuring that individuals can have some assurance that despite potential financial difficulties facing their insurer, they can still recover a portion of their benefits up to the specified cap. Understanding this maximum amount is crucial for insurance professionals as it impacts how they advise clients on the stability and risk associated with different annuity products.