Federal Employees Group Life Insurance (FEGLI)

Here’s a simple memory test for you. When did you first become eligible for the Federal Employees’ Group Life Insurance program? The day you started working for the federal government should be the correct response. Unless you formally declined that coverage before the end of your first pay period, the coverage is still in effect.

There are two distinct types of FEGLI protection provided by the default plan. The first is called “Basic,” and it’s a no-medical exam option for group-term life insurance. The second, it’s a form of insurance known as accidental death and dismemberment (AD&D). It provides double indemnity in the event of an accident. The government and you will split the premium for this set of benefits, with one notable exception. The Postal Service covers its employees’ entire cost of Basic insurance due to collective bargaining agreements.

Basic life insurance

Your Basic life insurance policy is worth one year’s worth of wages. This sum will be subtracted from your retirement plan contributions. Additionally, it is rounded up to the next higher thousand dollars and increased by $2,000. Every time your income fluctuates, that amount changes.

Your AD&D coverage amount would equal your Basic coverage if you were to pass away or lose two or more body parts, such as a hand, foot, or eye. If you were to lose only one of your body parts, the price would drop by 50%.

The AD&D benefit you receive is age-dependent. If you are under 35, your AD&D coverage will equal twice your Basic life insurance. When you reach age 45 or older, the multiplier equals your Basic insurance amount after declining by one-tenth for each year you are over 35.

Additional life insurance

After you have basic and accidental death and dismemberment (AD&D) life insurance, you can add other types of coverage. Suppose you decide to go with one of these alternatives. In that case, you will pay for everything associated with it.

Option A: Standard Insurance

Option A allows you to purchase up to $10,000 more in life insurance. Insurance premiums start relatively low but rise steadily as an employee age. You pay more the older you are.

Option B: Additional

If you select Plan B, the policy provider will round up your life insurance coverage to the closest $1,000. It will equal one, two, three, four, or five times your annual basic salary.

Option C – Family

Option C allows you to include your spouse and qualifying dependent children under a single insurance plan for easier administration. Like with Option B, you can select as much as five times the minimum coverage required, with each additional multiple equating to $5,000 for your spouse and $2,500 for each of your children. Premiums are calculated per-multiple basis and are directly related to how old you are.

Contact Information:
Email: cev@fortunefinancialservices.com
Phone: 7242723902

Free Retirement Benefits Analysis

Federal Retirement benefits are complex. Not having all of the right answers can cost you thousands of dollars a year in lost retirement income. Don’t risk going it alone. Request your complimentary benefit analysis today. Get more from your benefits.

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Craig E. Vukich is a 35 year retirement specialist and Financial Advisor who has helped thousands of clients all over the country with their investment portfolios and retirement strategies. In that time, Craig has also helped seniors and retirees with their Medicare options as healthcare continues to be one of the most confusing issues facing people today.Personally, Craig lives in Beaver Falls, Pa with his beautiful wife and childhood sweetheart Barb and their lovely daughter Shalyn.Craig is a graduate of Westminster College which is about an hour north of Pittsburgh. Craig is a recreational golfer and traveler and Pittsburgh sports fanatic.

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