If you still have FEGLI, Check This Now

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I am a practicing financial planner, but I'm not your financial planner. Please consult with your own tax, legal and financial advisors for personalized advice.

[@stevejacobs9411]

If you retire with basic life insurance and select 75 % reduction. It will keep its value until you reach age 65. Then slowly reduce until it reaches 25% of its value. At 65 you no longer will be charged in retirement. So if your salary at retirement is 100k. It will slowly reduce to 25k. Which should be enough to pay your funeral expenses.

[@PlanYourFederalBenefits]

Thanks for sharing!

[@sandrag5048]

I pre-paid all funeral expenses for my husband and I. Didn’t want my kids to have to make decisions as that time is already stressful enough. Best thing we ever did.

[@PlanYourFederalBenefits]

Great to hear!

[@jenniferbrunson8671]

Thanks for the video. I haven’t looked at mine in years. I’m 59 and all my children are grown. I guess I should get rid of the family part since I’m single.

[@Bonnie-yu3kj]

Same here. We have FEGLI and another outside insurance. We are financially set and I realized we don't need all this LOL. Getting rid of it.

[@marycolmenar1633]

I dropped my FEGLI and signed up for private insurance. The private insurance premium is a tad lower than FEGLI, the reason for my switch is because the private insurance coverage is 2.5x the FEGLI coverage and my private insurance stays leveled.

[@pamelamoutz5307]

I agree the prices get ridiculous as you age. If you are young, shop around!

[@walkingdude8779]

Between 50 and 55 , I was paying approximately 100 per pay period. FEGLI at 55 on option b x5 is brutal expensive. My advice is get private insurance early. I had health issues at 37 that made me a high risk. So I was stuck with FEGLI until I could self insure.

[@failurescanbeblessings2209]

Thank you for your video.

[@PlanYourFederalBenefits]

You are welcome

[@jhartmac100]

The prob is the older you get, its harder to get better pricing even outside -private companies

[@walkingdude8779]

Another great topic

[@PlanYourFederalBenefits]

Thanks again!

[@nohandlehere55]

Good reminder for me to check. It isn't the most expensive, but it isn't insignificant either, esp. when we get into our 50's. I got the house paid and no debts (besides the normal taxes/insurance) and doing decent on the TSP. So I might keep the multiplier till I'm 60...I see there is some type of 75% thing with the basic that I don't quite understand, but will look into as I near retirement (in about a decade).

[@PlanYourFederalBenefits]

Here's more content about FEGLI if you find it useful: hawsfederaladvisors.com/fegli-articles/

[@perfectlymprfct]

Thank you! I never paid attention to that charge on my husband's LES. With his age and health, he won't beat the price he is paying. We'll pay better attention.

[@PlanYourFederalBenefits]

Thank you for your reply and feedback!

[@ddxl459]

Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult

[@Kimberlybaker331]

People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.

[@JamesShaver550]

Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.

[@ThickMommy]

Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things

[@PlanYourFederalBenefits]

Thank you for your comment!

[@bucklaughlin906]

Very helpful. I will emphasize that most of us Feds will get more coverage more cheaply if we shop outside of FEGLI.

[@PlanYourFederalBenefits]

Glad it was helpful!

[@swright5690]

Shop around for life insurance once you hit 55. Fegli gets very expensive since the insure everyone in federal service without any underwriting.

[@PlanYourFederalBenefits]

Thanks for sharing!

[@Linda.xing-tj2fh]

I'd retiring or working less in 4 years, and considering this financial recession, I'm deciding to begin taking up skilled trades. I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $180K per year but nothing to show for it yet.

[@b.coxemba6799]

Thank goodness am a veteran and me and my spouse funeral services are covered by a nearby national cemetery. The veteran affairs has a funeral program. Not knowing this we set aside 20k I savings bonds which grows for thirty years for funeral services. As a set it and forget fund. No insurance company can cancel or refuse payments. We also plan on withdrawing another 10k from retirement savings. We figured 15k each should be plenty. If not the surviving spouse can address whatever needed with other assets. These funds are separated from our emergency funds.

[@PlanYourFederalBenefits]

Sounds like you've put a lot of thought into your finances. Thanks for sharing!

[@b.coxemba6799]

@@PlanYourFederalBenefits we brought savings bonds with each federal tax return and some outside of taxes. The bonds purchase outside of tax returns became what if funding as a secondary emergency fund.

[@ohWTH1]

I've been seeing things about a $2,600 monthly payment from SS 2021 Act(?) passed by Presuden Biden. Is this true and if so, when do we start getting? If yes, is it automatic or do we apply?

[@MegaAlex010101]

Am looking for private life insurance to replacke FEGLI any advice on three life insurance company I should look into for quotes? Thank you! Im in pretty good health.

[@MegaAlex010101]

Also once I find a new life insurance policy do I have to wait until the end if the year to cancel it?

[@PlanYourFederalBenefits]

Great question. You should be able to cancel it anytime.

[@DonQuijote-fj1yi]

I'm in the 55-59 age bracket so my FEGLI premiums are quite substantial. Have been buying the higher Option B amounts because I have 2 grade school kids, a large mortgage, and a spouse who only works part time. Since I have 30+ years of TSP accumulation (100% traditional), would it viable to eliminate or reduce Option B and have my beneficiaries rely on the TSP death benefits for the bulk of their income if I pass away prior to retirement? I imagine that one downside to any future TSP withdrawals by my beneficiaries would be the taxation, while the FEGLI pay out wouldn't be taxed (I think). Would shopping for cheaper private life insurance make any economic sense? Thanks for the great video.

[@celticmco5672]

Drop Part B and get a 20 year term policy. I did it at 52 an got a 1 million dollar policy for less than half what I was paying for Part B with more coverage. Keep Part A and when you retire take the 75% reduction; will be free after age 65 and will always pay at least 25% of your last years salary.

[@PlanYourFederalBenefits]

Great question! This is a very specific question that has to deal with so many factors. I have many other videos about FEGLI or you could schedule a one-on-one meeting with us to provide specific advice for you. FEGLI Content: hawsfederaladvisors.com/fegli-articles/ Schedule Meeting: hawsfederaladvisors.com/work-with-us/

[@pamelamoutz5307]

​Can I ask who you went with for coverage outside? @@celticmco5672

[@wallys7016]

How do I drop it? Open season?

[@PlanYourFederalBenefits]

Yes

[@user-eb9ho7gq1x]

How to cancel or decrease FEGLI?

[@andyroo9381]

Probably through LiteBlue.

[@PlanYourFederalBenefits]

There are many options and ways to get a better deal. Here is more content that discusses other options that you may have: kzbin.info/www/bejne/iKacmq2GoK6crbc&ab_channel=HawsFederalAdvisors

[@zenawarrior7442]

Can we cancel before we retire? Thanks for the info 😊

[@sojuand7]

Yes.

[@user-fr2ln4bo2h]

www.opm.gov/frequently-asked-questions/insure-faq/life/how-do-i-reduce-or-cancel-fegli-life-insurance/

[@PlanYourFederalBenefits]

Thanks for sharing this!

[@celticmco5672]

You can cancel anytime but keep in mind FEGLI open season only come around every 10 years or so and with little warning if you want to get back in.

[@zenawarrior7442]

@@celticmco5672 OK good to know thanks!

[@stevewilliams1661]

After you retire , will you still be charged for fegli?

[@PlanYourFederalBenefits]

Great question. If is possible to get FEGLI for free in retirement. Here's a great video about it: kzbin.info/www/bejne/baOXiJmig7FseZY&ab_channel=HawsFederalAdvisors

[@williamburnham6639]

A Lefty 😋