If you are planning to purchase an annuity with a large sum of money (such as $250,000 or more), you need to be very careful about where you place those funds. In this video, Shawn Plummer from The Annuity Expert answers a critical question: Should you put all of your annuity money into a single contract?

The short answer is usually no. Just like the FDIC protects bank deposits up to a certain limit, the insurance industry has the State Guaranty Association (SGA). Shawn explains how these state-specific limits work (often capping coverage at $250,000 or $300,000 per person, per company) and why you should absolutely divvy up a large retirement nest egg across multiple A-rated carriers.

By splitting your money into multiple contracts, you can ensure that 100% of your life savings remains protected in the rare event an insurance company ...