FEGLI Questions to Ponder
We have discussed life insurance provisions offered via FEGLI (Federal Employee Group Life Insurance). OPM is responsible overall for providing the life insurance benefit to federal employees. OPM contracts with MetLife to process FEGLI claims among other important responsibilities, but OPM has your records and is able to tell you about your FEGLI coverage, but they are not able to provide you advice about how much insurance you should have.
- Also Read: 3 Major Retirement Planning Errors That Federal Employees Often Make—And How to Avoid Them
- Also Read: 3 Things Every Federal Employee Needs to Know About Divorce and How It Affects Their Retirement Plans
- Also Read: What Federal Workers Are Doing to Keep Their FEHB Coverage Affordable as Costs Continue to Climb
Questions You Should Ask;
• Financial experts say for my family’s security, my death benefit should replace my current income. How does my current FEGLI death benefit compare to this statement? Is this an area I need to evaluate more closely?
• How early in my career should I find a financial expert who understands my federal retirement benefits, including my FEGLI coverage? (its never too early).
• Have I thought about trying to determine the kind and amount of FEGL coverage I need in order to meet the goals I have set? Is there a cheaper option than FEGLI, how can I compare FEGLI against other options?
• Financial experts say that life insurance coverage should be 10 to 20 times your annual salary. How often should I evaluate my own insurance coverage to see where I stand?
• Do I have enough coverage to pay for my funeral expenses without placing a burden on my family and will I have some left to provide a cushion for my family?
• What should my FEGLI cover to help take care of my funeral costs and other expenses?
• Have I considered the high costs of funeral and burial arrangements and how I might lower the costs by looking into pre-funeral plans as part of the process of planning to retire well?
• Have I looked at my debt to FEGLI death benefit ratio? Even if I have good coverage is my debt so high that it will eat up the benefit and leave my family strapped?
These are simply sample questions about FEGLI that you should ponder and some food for thought to assist you in planning your federal retirement.
P. S. Always Remember to Share What You Know.
RELATED TOPICS – More Federal and Postal Insurance Information
Federal Employees Health Benefits (FEHB)
Federal Flexible Spending Account (FSAFEDS)
Federal Long Term Care Insurance Program (FLTCIP)
Federal Employees and Medicare
Federal Employee Dental and Vision Insurance Program (FEDVIP)
