What is share insurance coverage after a member dies?
o The NCUA will insure a deceased member’s accounts as if he or she were still alive for six months after a member owner’s death. During this “grace period,” the insurance coverage of the member owner’s accounts will not change unless the accounts are restructured by those authorized to do so. The NCUA applies the grace period only if its application would increase, rather than decrease, share insurance coverage. For example: A and B own a qualifying joint account of $500,000 for which they each have a right of survivorship. B also has a single (or individual) account of $250,000 at the same NCUA-insured institution. If A dies, for six months after A’s death the NCUA will still insure the A and B account as a joint account, even though B, as A’s survivor, has inherited A’s ownership interest in the account. After the grace period, B’s increased ownership interest in the joint account would be added to his or her single account and insured to a limit of $250,000. Please note this grace
