Annuities are financial contracts sold to individuals by insurance companies. These contracts provide individuals with a steady and reliable source of income during retirement. The insurance company is responsible for satisfying these future obligations. Although it is a rare occurrence, annuity companies do fail. When this happens, it can have significant consequences for policyholders, the insurance industry, and the broader economy. There are several reasons why annuity companies fail, including poor investments, inadequate risk management, and regulatory issues. When a company fails, policyholders may face a range of challenges, including a loss of income, uncertainty about the safety of their investments, and difficulties in accessing their funds. In this article, we will explore what happens when annuity companies fail and the steps that can be taken to protect policyholders and mitigate the impact of a company’s collapse. One of the most immediate consequences of an annuity company’s failure is the disruption of income payments to policyholders. Annuities are typically purchased as a means of securing a steady stream of income during retirement, and the failure of an annuity company can leave policyholders without this vital