~~FEGLI OPTIONS
In a previous post we discussed the group life insurance, FEGLI, offered by the Federal Government to its employees. We talked about the Basic Life Insurance offered to federal employees. Let’s reiterate, at retirement your Basic insurance will be equal to your salary, rounded up to the next higher $1,000 plus $2,000. Under the Basic insuran
ce you may choose a 75% option whose cost remains the same as when you were an active employee until you reach age 65.
At age 65 your premiums cease and the value of your insurance
- Also Read: Balancing FERS, TSP, and Social Security May Sound Easy—But the Timing Could Make or Break Your Income
- Also Read: Miss This Medicare Deadline After Retirement and You’ll Face a Lifetime Penalty
- Also Read: The Truth About FEDVIP Plans That No One Talks About Until It’s Open Enrollment Panic Time
If you choose the ‘no reduction’ option, which is slightly more expensive, your insurance will remain the same as it was when you retired. You’ll pay a slightly higher premium until age 65, and then your monthly premium will drop. This option allows your coverage to remain the same upon your death, paying the full amount as a death benefit.
Always talk to your human resources office or the plan administrator or a financial professional trained on your benefits to be certain you understand all the provisions of the life insurance you are choosing and the options.
P.S.  Always Remember to Share What You Know.
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