You will be required to make some critical decisions concerning your FEGLI coverage when you retire. It would be best to precisely determine which of those benefits you wish to preserve, considering how much you are ready to pay. Here are some of your options.
Basic Insurance
As I mentioned last week, you were automatically protected by basic insurance when you were employed unless you declined it. Your base pay – the amount from which retirement deductions are deducted – rounded up to the next $1,000 plus $2,000 equals your coverage.
When you retire, you’ll have three options for basic insurance coverage: a 75% discount, a 50% discount, or none at all. If you choose the 75% discount, you’ll keep paying the same rates for this coverage as you did as an employee until you reach the age of 65.
You won’t have to pay any more premiums after that, and the face value of your insurance will decrease by 2% every month until it reaches 25% of its actual worth.
If you choose the 50% discount, your basic insurance will be decreased by 1% per month until it reaches 50% of its face value. You will have to pay higher premiums in exchange for the enhanced benefit.
Option A – Standard Insurance
If you choose basic insurance, you also can purchase an extra $10,000 in coverage at your own expense. At first, premium rates for younger employees are low, but they rise over time. Premium deductions will halt after the calendar month in which you turn 65 if you haven’t already terminated that coverage (which you can do at any time). Your Option A insurance will automatically depreciate by 2% every month until it reaches 25% of its face value at that moment.
Option B – Additional
Option B allows you to select a coverage amount that was one to five times your yearly basic salary, rounded up to the nearest $1,000. You can choose to keep that coverage once you retire. You’ll be stuck paying the entire price if you do, which will only increase as you get older. You can either reduce the number of multiples or let the dollar value of that coverage fall at a rate of 2% per month for 50 months until it hits zero, starting at age 65. You can also cancel the coverage to eliminate the cost.
Option C – Family
Option C allows you to cover your spouse and to qualify dependent children under one policy at your own expense if you choose it. You could choose up to five multiples of coverage, with each multiple equaling $5,000 for your spouse and $2,500 for each of your children, much as Option B.
Contact Information:
Email: [email protected]
Phone: 6023128944
Bio:
Mike was born in Chicago, Illinois on August 13, 1946. He was brought up in the
suburb of Skokie on Chicago’s northwest side and graduated from Niles Township (
East ) high school In 1964. Two years later he joined the US Air Force in November of
1966. After 2 years of Intense training he volunteered for Viet Nam and was sent to
Bien Hoa Airbase, which was 25 miles from Saigon, the nation’s capital. He
volunteered for a number of especially dangerous missions on his days off, such as
flying as a door gunner on a US Army helicopter and as a technical assistant on a
psychological operation on an Air Force O-1E observation aircraft. Capping off his
impressive accomplishments was winning the coveted Base Airman of the Month for
March 1969, a feat which was featured in the Pacific Stars And Stripes newspaper
read by every service man stationed in the Pacific theater of operations. After his
Viet Nam tour of duty he was stationed at Luke Air Force Base in Glendale, Arizona
where he met and married his wife, Lequita.
He graduated from Arizona State University in May, 1973, and after a 30-plus year
career as a financial advisor he joined a number of service organizations including
Easter Seals and Valley Forward, sponsor of EarthFest. He was also involved with the
National Federation of Independent Business and became the longest-serving
chairman of the Leadership Committee ever. He spoke before the ( AZ ) House Ways
and Means & Senate Finance committees. He then joined Disabled American
Veterans ( DAV ) in September of 2015. He rose quickly through the ranks and
became Chapter 8 Commander in May of 2019 where he served with Distinction for 3
years before being “ termed out”. The next year, as Vice Commander, he won the
title of National Champion Recruiter!
