How Do You Know What Kind of Life Insurance To Buy

The life insurance (FEGLI) that comes as a part of the benefits from your job is generally the only life insurance most people have.  Is it enough or is it the right kind.  That is a big question and a very important one.  One of the gaps HR professionals need to fill, is explaining to federal workers the difference between term and whole life insurance.  Too many workers have life insurance and fail to understand how it works and if they really need it.

What is life insurance

• Also Read: Early Retirement for Federal Employees: The Must-Do List Before You Hand In That Notice
• Also Read: What Does the Federal Retirement Process Look Like?
• Also Read: Basics of Civil Service Retirement System (CSRS): You Should Know These

for?  Sounds a little off.  I don’t think so.  If we are going to have life insurance then we need to determine why do we need it.  We also need to determine if the cost of life insurance outweighs the benefit.  Do you want the life insurance to replace income?  Do you want to use life insurance for final expenses or will it be used as a way to create financial wealth for your family.

Once you determine your purpose for life insurance then you can begin determining how much life insurance you need and what you can afford.  When and if you do purchase an life insurance policy, always remember to revisit the policy as changes in your life take place, it might be necessary to review the policy to see if it still answers your intentions.

Federal employees have term life insurance (FEGLI).  Do federal employees need life insurance other than what is offered through employment?  That is a question to ponder.  The thinking should follow:  Do I need life insurance?  What do I need it for?  What do I want it to do for me?  How much do I need?  Is the life insurance for me or my family?

We highly recommend that you speak with a knowledgeable financial professional before making any financial or life insurance decisions

P. S.  Always Remember to Share What You Know.