- Federal Employee's Retirement Planning Guide - https://fedretire.net -

A Life Insurance Check-Up: Understanding FEGLI Coverage – Part 1

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Life insurance is often the last thing a federal employee thinks about when deciding to retire. After all, you are looking for a great escape not your last hoorah. Yet, making uninformed FEGLI decisions prior to retiring can make it very difficult for your loved ones.

What you should know about your Federal Employees Group Life Insurance (FEGLI) coverage:

Not sure how much FEGLI coverage you have?  In block 27 of your SF-50 Notification of Personnel Action, or on your Leave and Earning Statement, it will list the coverage options you selected.  Then go to the FEGLI calculator available at http://www.opm.gov/calculator/worksheet.asp [2] to determine the dollar value of the insurance.

Print a copy of the insurance amount every year to keep with your will and use the document to see if this insurance is still cost effective and meets your needs.

When was the last time you looked at the amount of your FEGLI coverage, or other life insurance coverage, to determine how much life insurance you need?  Compared the costs of the insurance to other insurance options available.

Everyone should re-evaluate their life insurance needs periodically and have someone they trust to review their insurance needs and options. If you decide to purchase insurance from an insurance provider other than FEGLI, be sure it is a reputable company with a great financial rating. Review our FEGLI online guidance [3] and Survivor Concerns [4] pages that discuss insurance options and links to insurance company rating services.

Part two of this series titled “Evaluating Your Life Insurance Needs” will help you assess your needs and review your existing coverage to see where you stand.

Request a FREE Retirement Benefits Summary & Analysis [5] from a local adviser. A sample analysis [6] is available for your review. Includes projected annuity payments, income verses expenses, FEGLI, and TSP projections. This service is not affiliated with www.federalretirement.net.

The information provided may not cover unique or special circumstances and federal regulations are subject to change. To ensure the accuracy of this information, contact your HR specialist or benefits coordinator and ask them to review your official personnel file and circumstances concerning this issue. Retirees can contact the OPM retirement center.

Visit http://federalretirement.net [7] often to learn more about retirement options, benefits, and estate planning issues and I suggest signing up to receive my FREE monthly benefits newsletter [8].

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