Not always. If your insurance company fails, the maximum amount of protection provided by the Delaware guaranty association for each type of policy, no matter how many of that type of policy you bought from your company, is:
Life Insurance Death Benefit
- $300,000 per insured life
Life Insurance Cash Surrender
- $100,000 per insured life
Health Insurance Claims
- $500,000 for basic hospital, medical or surgical (per insured life) insurance or major medical insurance
- $300,000 for disability insurance and long term care insurance
- $100,000 for health insurance coverages not defined as disability insurance, long term care insurance, basic hospital, medical or surgical insurance or major medical insurance.
Annuity Benefits (Present Value)
- $250,000 per contract owner
Unallocated Group Annuity Benefits
- $1,000,000 per contract owner
Please see the Delaware Life and Health Insurance Guaranty Association Act (a link to the Act can be found in the Additional Info section) for specific terms of the limitations or coverage.