Insurance company annuity coverage of a catastrophe .
The banks have FICA Up to $250,000. per account. the state of illinois says they will cover up to $250,000. my accoount has over $400,000. am i safe?
Terry Says
The most important thing to consider in purchasing an annuity is not the rate or “deal” you are being offered. It is the SAFETY RATING of the insurance company!
At least the FDIC and SIPC (for brokerage firms) insurance plans are federally funded. The State of Illinois makes a guarantee WITHOUT having a fund! It just promises to “assess” companies doing business in the state to cover your losses up to $250,000. That could take forever, if ever!
Stick with top-rated insurance companies. I wrote that in my book — and made a huge point of it. But few recognize that issue with insurance products.
