Section 522(d)(8) of the Bankruptcy Code establishes an exemption for "any unmatured life insurance contract," and the inflation-indexed maximum amount protected is $12,250 in cash value. You'll often find additional provisions that provide exceptions to this general rule that apply in cases of potential abuse, such as buying an annuity immediately before declaring bankruptcy or becoming insolvent. Each state will apply that standard differently, but the net result is that only a portion of annuity assets will be protected, allowing creditors to make claims for the remainder.