From United Heritage Credit Union's newsletter
In 2010, Congress made permanent the temporary increase in federal deposit insurance of $250,000 thereby reducing the need for excess deposit insurance coverage. Therefore, effective July 31, 2012, the $250,000 in supplemental deposit insurance from the Excess Share Insurance Corporation (ESI) will no longer be available.
With the new higher NCUA deposit coverage, I'm surprised we haven't seen more credit unions dumping ESI coverage. The credit unions likely pay premiums to have this coverage. Please refer to my review of ESI coverage
for more details about ESI.
As mentioned in the newsletter, members can likely structure their accounts to increase federal insurance coverage above $250K. In this blog post
I described how people can designate beneficiaries on their accounts to insure up to $1.25M.