Not always. If your insurance company fails, the maximum amount of protection provided by the Virginia 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: $300,000 per insured life
Life Insurance Cash Surrender: $100,000 per insured life
Health Insurance Benefits: (1) $100,000 for coverage not defined as disability insurance, basic hospital, medical and surgical insurance, major medical insurance or long-term care insurance including any net cash surrender and net cash withdrawal values; (2) $300,000 for accident and sickness insurance that constitutes disability insurance or long-term care insurance; (3) $500,000 for accident and sickness insurance that constitutes basic hospital, medical and surgical insurance or major medical insurance
Individual Annuity Benefits (Present Value): $250,000 in the present value of annuity benefits, including net cash surrender and net cash withdrawal values.
Structured Settlement Annuity Benefits: $250,000 in present value of annuity benefits, in the aggregate, including net cash surrender and net cash withdrawal values, if any, for each payee of a structured settlement annuity (or beneficiary or beneficiaries of the payee if deceased).
Unallocated Annuity Contracts: $5 million in benefits for one employee benefit plan sponsor whose plans own directly or in trust one or more unallocated annuity contracts. The $5 million limit does not apply to annuity benefits for any individual participating in a benefit plan established under Section 401, 403(b) or 457 of the U. S. Internal Revenue Code who (i) selected an investment option that includes investment in unallocated annuity contracts and (ii) is covered by such an unallocated annuity contract, including the beneficiaries of each such individual if deceased. For any such individual, the coverage limit is $250,000 in present value, including net cash surrender and net cash withdrawal values. Unallocated annuity contracts not owned pursuant to an employee benefit plan are not covered.
In no event shall the Association be liable to cover more than an aggregate of $350,000 in benefits with respect to any one life for life insurance, health insurance, annuity benefits, structured settlement benefits, and 401, 403(b) or 457 plans except with respect to benefits for basic hospital, medical and surgical insurance, and major medical insurance in which case the aggregate liability of the Association shall not exceed $500,000 with respect to any one individual or with respect to one owner of multiple nongroup policies of life insurance, whether the policyowner is an individual, firm, corporation, or other person, and whether the persons insured are officers, managers, employees, or other persons, more than $5,000,000 in benefits, regardless of the number of policies and contracts held by the owner.