Are You Overpaying for Federal Life Insurance (FEGLI)?

[@angelalopez2003]

I think it depends a lot on your health for sure. My husband, a supervisor with USPS for 35 years, was diabetic and had a kidney transplant along with other health problems. He passed away suddenly from a heart attack. I was left with a mortgage and car payment on a vehicle he had just bought 3 months prior. Thankfully, he had option B. Because of that, I was able to pay for funeral expenses, pay off the car, and have enough money to ensure I won't lose the house. Because he passed away two weeks before his 59th birthday, there was a reduction in pension benefits.

[@danieljustdaniel9550]

After retiring from the Military and starting my new federal job, 20 years ago i decided to get a additional insurance police since my famliy dynamics warrent it. For the 20 years i paid $40 a month for a 250K policy, well the 20 years is up Jan 15th 2022 and i got my notice that the rate will now be $554.84 a month. So i contacted the company Protective life . Said thanks but no thanks. Now 2019 a month before I retired for the 2nd time was told that i had cancer. Many companies including the one i have now will not renew or do a new policy until you have been cancer free for 5 years, for that reason I keep my Fegli policy. UPDATE 12-01-21 called WAEPA and yes they will not cover with cancer...

[@celticmco5672]

Here's an example of a 33 year recently retired FED still not 60 years old yet. At age 50 I dropped Part B and got a 20 Year Term Life Policy (1 million dollars) that cost way less than Part B was costing me for more coverage (Part B goes up allot a age 50). I kept Basic only and dropped everything else. When I retired I opted for the 75% reduction which means at age 65 the Basic FEGLI is free. Upon my demise the policy will pay 25% of my last year working as an active FED salary. Avoid Whole Life. FEGLI is still good for folks that are uninsurable anywhere else; the open seasons only come around every 10 years or so - be careful not to cancel without a back up.

[@PlanYourFederalBenefits]

Thanks for sharing!

[@jscott1000]

I waived FEGLI almost my whole career until I heard about the 25% free coverage in retirement. That is the best unsung benefit in all of federal service. It took some medical exams to join but you need it 5 years before retirement to get that benefit.

[@drmitofit2673]

A 70 year old doctor joined our department in a va hospital new to the federal government, so I warned him to check the FEGLI part of his pay stub as it becomes very pricey at certain age thresholds. Turned out he had signed up for FEGLI with a huge 4x or 5x salary multiplier at a physician's salary and jacked-up age-adjusted premiums. He was shocked to find out he was paying $42,000 a year for much more life insurance than he needed. So he cancelled it and he thanked me for saving him $42,000 per year. Can you imagine how much he could make investing $42,000 a year instead?!?!

[@s.mas.w]

Canceled mine years ago and went with USAA. Much more coverage for far fewer💵💵💵

[@PlanYourFederalBenefits]

Thanks for sharing!

[@longlivetherepublic.4796]

If you are retired, have assets, or both, you DO NOT need ANY life insurance; your assets are your life insurance. Stop making companies rich when you don’t have to.

[@PlanYourFederalBenefits]

Thanks for sharing!

[@Fishouta]

We are in our 60's. After the house is paid off in 4 years, there is no need for us to keep our 3 multiples of option B. In fact, we really dont need any more than 1/2 our basic, once all is paid off and we retire.

[@Fishouta]

Honestly, in my age group (60-65) FEGLI is about the same price as term life insurance through AARP. So the downside is that in order to switch to AARP, you are subjected to underwriting, whereas stay with FEGLI, no underwriting. Huge win. Especially when you are certain old age where no one will underwrite you.

[@PlanYourFederalBenefits]

Thanks for sharing!

[@sandraperez7621]

How do I find out how much I pay for life insurance monthly and how much will my spouse receive if I die tomorrow. I am on Fed OWCP workman's comp but have my disability retirement approved but not useing it currently. How can I find out what I pay monthly?

[@christinemeers4858]

Look at your earnings statement line item fegli

[@oceancon]

Fegli was not a good choice despite some feds thinking they are. I was counseled to go to WAEPA and have had it for more than 30 years. It is way better.

[@PlanYourFederalBenefits]

Thanks for sharing!

[@Fishouta]

That can depend on your age and health. My 70 year old husband cannot get term life outside FEGLI.

[@rev68]

I was a dumbass and had 5x coverage from age 25-40 (as a single guy).

[@PlanYourFederalBenefits]

Thanks for sharing!

[@Fishouta]

Lol, it happens. At least you realized.

[@davidpitts4277]

Been thinking about dropping FEGLI. I have a private policy for $100,000.

[@fessit]

Very helpful

[@jamesmicalizzi7870]

I canned my fegli policy. Im single with no dependents, I’ll keep my money since I’m alive thanks 😉

[@PlanYourFederalBenefits]

Thanks for sharing!

[@Retired-jr3qs]

What will you do if you get married or have kids later.

[@jamesmicalizzi7870]

@@Retired-jr3qs not interested

[@mdgirl7777]

WAEPA and Compass Rose are better for federal employees.

[@PlanYourFederalBenefits]

Thanks for sharing!

[@MegSulivan]

Insurance will take care of you and your loved ones in the long run. While Investments will take care of your and your loved ones now and in the immediate future or even longer as you keep investing

[@PlanYourFederalBenefits]

Great points!