Not always. If your insurance company fails, the maximum amount of protection provided by the Minnesota guaranty association for each type of policy, no matter how many of that type of policy you bought from your company, is:
Life Insurance Death Benefit: $500,000 per insured life
Life Insurance Net Cash Surrender: $130,000 per insured life
Health Insurance Claims: $500,000 per insured life
Fixed Annuity Net Cash Surrender Value: $250,000 per insured life
Structured Settlement Annuities: $410,000 in present value per annuitant
Unallocated Group Annuities: subject to a maximum amount per covered plan--$250,000 per individual resident participant
Regardless of the number of policies or contracts with an insurer, the Minnesota Association is not liable to expend more than $500,000 with respect to any one life/individual.
These dollar amounts are effective for a rehabilitation or insolvency that occurs after May 8, 2009.