life insurance fdic
Recently, Pasadena-based IndyMac Bank was always captured here about how banks are guaranteed and have what is called FDIC insurance. But what is and how it works? Let's find out.
What FDIC Stand For
First, does the FDIC Federal Deposit Insurance Corporation. It was created by the Glass-Steagall Act of 1933 to provide deposit insurance for the control and savings deposits in member banks. The large number of bank failures of the Great Depression motivated Congress to put something in place.
How much is covered by FDIC
The basic insurance amount is at least $ 100,000 per depositor, per insured bank. Moreover, Individual Retirement Accounts (IRAs) are insured to $ 250,000. So one person might have a CD of $ 100,000 and $ 250,000 in your IRA at the same bank and would be insured to $ 350,000.
Having multiple accounts for more protection from the FDIC
It is also possible to have multiple accounts with different legal ownership, but the person should have an equal right with the money and must be a person. For example, you could have 100,000 dollars in an individual account, $ 100,000 in an account with you and your brother, and $ 100,000 with you and your uncle, and would be entitled to security in all three.
Another option are also aware of POD (Payable-on-Death) accounts. This goes for trust accounts as well. The account holder POD is insured up to $ 100,000 for each beneficiary, provided they meet certain requirements. For example, if an individual creates a POD account with their three children, beneficiaries would be covered for up to $ 300,000 of FDIC insurance. Adding beneficiaries only to meet the levels of FDIC insurance is not recommended.
Still not sure if you are covered? Simply go to target = "_blank"> www.fdic.gov / Edie and fill out the insurance estimator to find out.
References: target = "_blank"> target = "_blank"> www.fdic.gov
About the Author:
Jeff Rose started his career as a financial advisor with A.G. Edwards & Sons in 2001 out of Carbondale, Illinois. Always excited to meet new people and having a unique interest in the financial markets, being a financial advisor was the perfect fit for Jeff’s career.
In January of 2005, 4 years into his career, Jeff’s National Guard unit out of West Frankfort, IL was called up to support Operation Iraqi Freedom. Acquiring the rank of Staff Sergeant, Jeff served as Squad Leader while conducting military police maneuvers in central Baghdad. Anticipating his return, Jeff attained the Chartered Retirement Planning Counselor designation between mission and duties during his downtime in Iraq. Due to countless prayers, Jeff safely returned home March of 2006.
Picking up right where he left off, Jeff resumed his career as a financial advisor. His goal was to be the “complete package” advisor, wanting to assist in all areas including: investments, insurance, taxes, and estate planning. The next step was to become a CERTIFIED FINANCIAL PLANNER™ practitioner, which he did in November 2007. An individual who has earned the CFP® mark of distinction has met the education, examination, experience and ethics standards established by the Certified Financial Planners Board of Standards (CFP Board).
In December of 2007, Jeff and three others formed Alliance Investment Planning Group LLC.
Jeff resides in Carterville, IL with his beautiful wife Mandy, his new son Parker, and their spoiled pet boxer Klaya.
Article Source: ArticlesBase.com – Fdic: How Guaranteed is It?
FDIC Deposit Insurance Coverage – Introduction
