tsp annuity or monthly withdrawal

 

Every state guarantees the TSP Annuity (MetLife) for at least $100,000 (similar to FDIC insurance).
The state I live in (New York) guarantees annuities up to $500,000.

 

"States require insurers to set aside enough capital to pay claims and make annuity payouts...State guaranty associations would jump in if the insurer became insolvent. These associations must provide at least $300,000 in life-insurance death benefits, $100,000 in cash surrender or withdrawal value for life insurance, and $100,000 in withdrawal and cash values for annuities. Sixteen states have limits of $300,000 or $500,000 for annuities.
 
Peter Gallanis, president of the National Organization of Life and Health Insurance Guaranty Associations (www.nolhga.com), says people generally get more than the state limits. In most cases, the insurer pays from its reserves and the state covers any gap. He also says that immediate-annuity payouts would continue without a break."
 
http://www.kiplinger.com/features/archives/2009/01/krr_is_your_annuity_safe.html

"The legislation governing insurance companies is designed to provide absolute protection, as federal law requires them to hold a reserve that at all times equals the withdrawal value of your annuity policy. In addition, state law also requires surplus capital be available to increase your protection, as well as contributions to state guaranty funds that provide additional security in the event of unforeseeable problems."