by John Darer® CLU ChFC MSSC RSP CLTC
Hartford Life Insurance Company produced a comparison between structured settlements and other alternative financial products like CDs, in 1999, that has been clung to like a kid sucking his thumb by some structured settlement brokers. Hartford,which has since shed its annuity operations, has left quite a structured settlements legacy.
I periodically chide my industry colleagues who cannot seem to rid themselves of their Hartford "woobie". One of the symptoms of over reliance on the Hartford "woobie" revolves around a comparison between structured settlements and CDs.
Symptoms of Hartford Life "Woobie" Affectation
The "afflicted" will typically present with a comparison that shows that the FDIC limit for CDs is $100,000, perhaps on a website that shows a copyright of 2010. Download Structured Settlements v CDS $100K limit LOL*
On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which, in part, permanently raises the current standard maximum deposit insurance amount to $250,000. The standard maximum insurance amount of $100,000 had been temporarily raised to $250,000 until December 31, 2013. The FDIC insurance coverage limit applies per depositor, per insured depository institution for each account ownership category.
The temporary increase from $100,000 to $250,000 was effective from October 3, 2008, through December 31, 2010. On May 20, 2009, the temporary increase was extended through December 31, 2013 and eventually made permanent.
Image source: Andrew Genn| Dreamstime.com
* reproduced for fair criticism as noted