The Federal Deposit Insurance Corp. has a new policy limiting how much your life insurance company can claim against your credit and savings account.
The policy, called FDIC Life Insurance Limits, goes into effect on October 31, 2020, and applies to the insureds age 65 and older, including children, grandchildren, spouses and the surviving spouses or partners of the insured.
The policy also limits how much money the insured can earn.
If the insured’s income is below $1 million, the policy limits will go up.
This is different from what happened with the FDIC’s $1,000,000 Life Insurance Limit, which has gone up to $1.1 million since October 20, 2017.
However, unlike the $1M limit, the $100,000 limit applies only to the first $100 of a person’s income, which is the insured $1 and $1-1.2 million.
If you’re under age 65, you’ll need to pay $1 for every $1 you earn.
The FDIC limits apply to the following: Your employer’s 401(k) plan