FEGLI
FEGLI or the Federal Employee Group Life Insurance is a group life insurance policy that covers most of the federal employees.
Could the TSP Be Greatly Affected in The Next Crash? By Richard Brenner
Could the TSP Be Greatly Affected in The Next Crash? By Richard Brenner
Since the Index Funds were created over four decades ago, it has become about five times bigger after the most recent crash.
Many investors and fund managers are concerned due to how devastating this would be to the markets if there were to be another recession. And this event would affect TSP account holders as the investments are tied into index funds.
The most recent figure in the media to touch on this is Michael Burry, a fund manager that made his name by betting against the housing market, which fell in 2008.
Though communications with Bloomberg, he expressed that due to the imbalance of weight that certain stocks carry, there can be an overvaluation of stocks, along with smaller securities being overlooked with Index Funds having more say in buying and selling against Fund Managers.
For instance:
Let’s say that Kyle, aged 35, a small business owner, decides to invest his money into the C or I funds, the fund he puts his money in will then purchase shares in accordance to the rate used as the measure for that particular fund. So, for example, if Big Company A has 4.7 percent of the index, and Big Company B has 3.2 percent of the index, Kyle’s investment would go there.
So who exactly makes decisions on how much each share represents the index they are in? The decisions are made depending on market capitalization.
Well, in the past, when the C fund was fairly adolescent, many investors like actively managed mutual funds were making calls about major companies in the fund. Investors would research data to discern a stock and then possibly change the market capitalization of the company by purchasing or selling the shares.
Now during these times, the analysts and fund managers were not 100% correct all the time, but as a whole, they set the stock’s value.
However, currently, index funds have outperformed active fund managers that they have a large control over the choices of purchasing and selling. The fund managers that still do an analysis of individual stocks generally have less sway on the value of a stock compared to the index.
Because most of the money is flowing into the bigger stocks, not much money is being filtered toward the smaller stocks that may be worth more. People that are purchasing indexes using the same measurement, such as the S&P 500 or DOW, are purchasing the same shares of big companies without really reviewing each security and bypassing smaller shares.
Another thing that Burry claims is that if there is a sharp market decline, a majority of shareholders may sell all at once, which can cause the prices of shares to be so low that there are more people selling rather than purchasing.
Whether this happens or not, we will not know until it happens, really, but it is something to think about.
About Richard Brenner
As an independent licensed financial professional, Richard Brenner specializes in the retirement solutions federal employees need most. Rich lives in Mount Laurel, NJ, and graduated from Lafayette College with a B.A. in Economics and Business and has been assisting families with wealth preservation strategies since 2000.
Richard Brenner can be reached at;
609-605-0291
Obtaining the Best Federal Employee Life Insurance by Carol Singer
Obtaining the Best Federal Employee Life Insurance by Carol Singer
Carol Singer discusses the importance of finding the best life insurance (Hint: it isn’t always FEGLI)
With so many different options on the market nowadays, life insurance can be a confusing topic (to say the least), especially for Federal Employees. As you may know, Federal Employees Group Life Insurance (FEGLI) only requires public sector workers to pay two-thirds of coverage while those in the private sector are required to pay 100%. Furthermore, private life insurance rates will depend on one’s health, which is different to FEGLI coverage where everybody within the same age bracket pays the same amount.
With this in mind, those who are healthy may feel as though the insurance is costly because they are paying the same amount as those who are not quite so healthy. In addition to this, FEGLI Option B and FEGLI Basic will both increase in line with adjustment to your salary no matter how healthy you may be; Option B covers you for between one and five times your yearly salary.
As you may know, Option B and Option C are also available, and these protect your partner and children. If you get married/divorced or if you gain/lose a family member, the two can be adjusted accordingly without having to prove insurability. With FEGLI Option C in particular, this is helpful for those who cannot get private life insurance; for example, those who have a health condition or are slightly older than private companies allow. This being said, coverage will never rise above $25,000 which can be quite limiting.
What Should You Do? – If we use all of the information above, the best step to take moving forward is to re-evaluate your life insurance options in five-year periods. Why? Because in this time, your insurance needs may have changed somewhat due to a big life event. If your children have completed college, you will not require the same levels of insurance now than you did back before college. Furthermore, you may have paid the mortgage, and this will allow you to reduce the coverage again. If you get married or divorced, regular assessment gives you an opportunity to adhere to your needs for the next period of your life even if it is a simple change in beneficiary.
Regardless of your hobbies, FEGLI will always keep you covered, but it becomes incredibly expensive as you age. Once you reach a certain age, it is almost always advisable to begin reviewing the cost of your FEGLI against private market comparisons. You’ll likely find that, as long as you are reasonably healthy, you can receive some very attractive benefits from an Indexed Universal Life (IUL) insurance policy or lock in much lower costs by using a fixed Term Insurance policy (for, say 20 or maybe 30 years) vs. continuing with FEGLI into retirement.
As long as you have the coverage for at least five years before retiring, you may maintain FEGLI Option B even after retiring. By having this in place, your partner can replace your income with this amount if you were to pass away before them. If we say you have five times your salary ($64,000 x 5 = $320,000) of coverage for option B, the cost would be just under $140 per month. After turning 60, this doubles and then increases yet again every five years until you reach 80, and this is important to consider. This is why we highly recommend that you consider comparing your FEGLI policy against cheaper alternatives.
Facts About FEGLI
- FEGLI becomes very expensive as you age.
- Unfortunately, there is no way to take out a loan against your FEGLI policy.
- Since it is a group life insurance policy, there’s no way to build a cash value.
- In every circumstance (except the beneficiary causing your death), the beneficiary will receive the death benefit if you pass away.
- There are no refund options for FEGLI if you choose to cancel.
- With the living benefit in tow, you can receive early payments if you happen to come down with a serious illness.
- For no extra cost, accidental death and dismemberment is included within the insurance itself.
Contact Carol Singer:
Phone: 505.310.1474
Email: [email protected]
Other Carol Singer Articles
The Correct Way of Saving for Retirement by Carol Singer
Is FEGLI Right For You, Right Now? By Carol Singer
Five Key Steps Towards Federal Retirement and Financial Security by Carol Singer
Is FEGLI Right For You, Right Now? By Carol Singer
Is FEGLI Right For You, Right Now?
By: Carol Singer
When it comes to the FEGLI, there are some common questions that arise time and time again but perhaps none quite as much as ‘is it the right time in my career/life for FEGLI?’. In truth, there’s no definitive ‘yes/no’ advice we can provide here, but we can suggest three considerations to help make your decision that little bit easier.
- Firstly, do you believe that you are healthy enough to qualify for individual coverage? When thinking about this factor, you should consider your habits, age, health, lifestyle, etc.
- Secondly, what’s your timeframe in the coming years? Normally, federal employees will get priced out of FEGLI coverage as they age and as FEGLI Rates rise dramatically, so what stage of your career have you reached?
- Thirdly, what are you trying to protect with a potential policy?
The Federal Employee Group Life Insurance, shortened to FEGLI, is advantageous for many federal employees since coverage can be obtained without the worry of medical underwriting. If you’re still early in your career, it’s also quite easy to get a competitive death benefit. However, it isn’t all roses with FEGLI coverage because the premiums steadily increase over time and everybody pays the same rate (the flip side of having no individualism with underwriting). This means that healthy FEGLI participants will be charged the same higher rates and unhealthy participants. So if you are healthy enough to get individual coverage you should seriously consider less expensive FEGLI alternatives.
Potential Benefits of Private Life Insurance vs. FEGLI
If you were to assess the private life insurance market, there are also pros and cons because coverage is more flexible with various riders and underwriting…but the medical underwriting may force you to pay higher premiums if you are unhealthy.
Surviving a Health Scare – If you were suddenly struck down with a heart attack, cancer, or even a stroke, your ability to obtain life insurance would be difficult and the expenses would go sky-high. Therefore, ‘living benefits’ – benefits you can access while still alive – can be an excellent way to replace your income and stay afloat in the short-term. With private insurance, an Accelerated Living Benefit rider could allow you a certain percentage of your benefit early. On the other hand, the FEGLI offers you nothing which leaves you scrambling around with your TSP for much-needed funds.
Considering you have been working hard to contribute to your TSP year-after-year, to think it could all disappear in a matter of months on medical bills and replacing your income is quite worrying. Just because of a health problem, you lose your nest egg, and this is before we even mention taxes and a penalty for withdrawing from your TSP early.
With life insurance, the question for many years was ‘what if I were to pass away?’ However, this is quickly being replaced with ‘what if I live after a health issue?’. Nowadays, technology within the medical industry is growing rapidly, but the cost of medical care is increasing even faster which is putting families into debt every single day.
Do I Need FEGLI?
With any type of insurance you purchase, whether it’s life, travel, homeowners, or health, the idea is to protect something of value just in case something were to happen or go wrong. Ultimately, this is why life insurance is a personal choice and different for every individual in the world. Normally, you can decide with your family the main concerns and how you want to protect them.
If insurance was free to everyone, there’s no doubt we’d be taking policies against cardboard box injuries, asteroids, and everything in between. Perhaps even more efficient, if we could see into the future, we would know exactly what insurance was required (or we could prevent the problem from happening in the first place). Unfortunately, neither of these options are available because insurance costs money and we haven’t developed time machines. Therefore, the answer to the all-important question of life insurance should be answered by looking for flexible coverage at an affordable price.
Within the industry, insurance will typically be limited in the amount of triggers they have, so finding an inclusive policy such as this is easier said than done. If you were to ask a federal retiree whether they managed to purchase cancer insurance after forking out for the FEGLI, FEHB, and FLTCIP, you wouldn’t get much of a response. Even if they were lucky enough to buy cancer insurance, then what happens if they have a heart attack; nothing because the wrong trigger was set and money has been wasted.
Rather than buying insurance policies with a single trigger, it will always be more efficient to find coverage with many different benefit triggers.
FEGLI Candidates – With all of this information in mind, who does the FEGLI suit? First and foremost, Death Only Insurance will be the cheapest option for those aged under 45 years. If you are already past this age, the five-year increases have already started, and the Basic Extra Benefit has ended. Therefore, private insurance starts to become more competitive (this is helped by the addition of living benefits).
After this, FEGLI may still be an option if you have a health condition since there is no medical underwriting. If the issue is serious, private insurance companies will take this into account and raise all premiums.
With the FEGLI still around today, this alone shows that it has a place in the industry and it helps thousands of people. This being said, it is very generic in that everybody pays the same regardless of his or her health, smoking habits, and every other factor that normally plays a role. In the same breath, the price increases will apply to everyone regardless of the same factors.
Key Questions – Before we go, we want to provide you with some key questions you need to ask before making a decision;
- Will underwriting be a problem if I go for personalized coverage privately?
- Can I pass the underwriting in a few years’ time if I were to wait?
- What exactly do I need to protect? – For most, the death benefit will replace income, pay for a funeral, and ensure their families can continue their current lifestyle while adjusting to your passing.
- Will my need for insurance be removed in the next decade or two? – For example, will you finish paying a mortgage or will your children leave education?
- Have I got cash reserves to act as living benefits?
All things considered, the best thing for you to do right now is to assess your position. The longer you wait, the more FEGLI becomes unattractive, and you are forced into private insurance which can be damaging if you have a health issue. If you need help with this decision, be sure to discuss your position with a finance expert for unique advice!
Contact Carol:
Phone: 505.310.1474
Email: [email protected]
Other Carol Singer Articles
Obtaining the Best Federal Employee Life Insurance by Carol Singer
Federal Employee Health Benefits and FEGLI at Retirement by Bob Wiener
Federal Employee Health Benefits and FEGLI at Retirement by Bob Weiner
Bob Weiner believes that if you’re a federal employee who is considering retirement and you should know that you are covered by both the FEHB (Federal Employee Health Benefits) program for health insurance and the FEGLI (Federal Employee Group Life Insurance) plan for life insurance coverage, then you may need to factor in what your options are in terms of taking these benefits with you when you go. This is because, while there are ways of maintaining this protection, there are distinct criteria that you will need to meet in order to continue the coverage after you become a retiree.
How to Continue FEHB Coverage After Retirement
In order to be eligible for continuation of your FEHB coverage after retirement from service, there are two primary criteria that you must meet. First, you will need to have retired on an immediate annuity. This means that you will have to have a retirement annuity that starts accruing no later than one month following the date of your final separation from service.
In addition, you will also have to have been either continuously enrolled as an employee or as an eligible covered family member in any of the FEHB plans during the five years of service that immediately preceded your retirement. (It is important to note that it is not required that you be enrolled in the same plan for each of these five years).
If, however, you have less than five total years of service leading up to your retirement, then you will need to have been enrolled in a FEHB plan during all of your time of service since the first opportunity that you had to enroll.
Continuing Your FEGLI Benefits
In order to keep your basic FEGLI coverage in retirement, you will also need to have five years of service. If so, you will have three options in how you may retain these benefits. These include the following:
- 75% Reduction – With this option, a reduction in coverage will begin the second month following your 65th birthday, or the second month following your retirement, whichever occurs later. Then, the coverage will decrease by 2% every month until it reaches 25% of its original amount, where it will then level out.
- 50% Reduction – With this option, you can retain 50% of your original amount of coverage. The reduction also starts during the second month after your 65th birthday, or the second month after retiring – whichever occurs later. With this option, the coverage will decrease by 1% every month until it gets to 50% of its original amount.
- No Reduction – With the no reduction option, you may retain the full amount of your FEGLI benefit.
Options for Those Not Eligible to Keep Their Benefits
If you are not eligible to continue your FEHB or FEGLI benefits, then you may still have various options. For example, with the FEHB plan, you will have an extension of 31 days of coverage at no cost to you. Following that time, you can either drop the plan altogether or convert it over to an individual contract. You may also request a Temporary Continuation of Coverage. This will allow you to continue the FEHB benefits for up to 18 months at a premium cost of 102%.
For the FEGLI plan, you will also have a no-cost 31-day coverage extension. However, after that time period has elapsed, you will only be able to either drop the coverage completely or to convert some or all of the benefit over to an individual policy and likewise pay the premium out-of-pocket.
About Bob Wiener:
Bob Wiener believes in “Working hard and always being there for (his) clients.” Working with the employees and partners of a major accounting firm for over twenty years, Bob has learned how to help even the most discerning clients work their insurance and retirement planning needs.
FEGLI Open Season Begins for Federal Employees’ Benefit
The federal employees who have wanted to join FEGLI or increase their FEGLI coverage can now easily do so as the open season with regard to it has begun. This will not apply to people who have retired. The last open season occurred in 2004. Experts say it’s high time for employees to reassess their insurance.
Details on FEGLI Open Season for Federal Employees
The FEGLI or Federal employees’ Group Life Insurance’s open season has begun and it would continue throughout September. As a part of this phase, the federal employees can enroll themselves for this plan or they can change the coverage.
The FEGLI Data
As per the Office of Personnel Management, about 2.4 million feds have been benefiting from FEGLI. It includes employees of the semi-independent U.S. Postal Service. This number is 89 percent of those who are eligible for the plan.
About FEGLI
Some people might not be aware of what FEGLI is. It is a term type insurance that allows a person to have basic coverage equal to the salary of an employee rounded to next $1000 plus $2000. It has an option for $10,000 in additional coverage. Additionally, it has an option for up to five times the salary of an employee rounded to the next $1,000 and an optional coverage of about $12,500 for each dependent child who is less than 22 years of age and an optional coverage of $25,000 on the spouse of the employee.
The Costs
The premium an employee has to pay varies by age. The enrollees need to pay the full cost. The exceptions are agencies paying two-thirds of the cost of basic insurance or the USPS paying the full cost of that coverage for all its employees. It is pertinent to add here that some premium rates increased and decreased in January this year due to claim patterns.
The Last Open Season
The last open season was in 2004 which reiterates the fact that FEGLI open seasons are rarer when compared to the vision or dental insurance programs or the federal health insurance programs. Officials state that in the prior open season about 146,000 changes took place. These changes were related to increases in existing coverage and new enrollments
Expert Advice
The OPM’s Assistant Director for Health Care and Insurance, Alan Spielman believes that the federal employees should look hard at and reassess their insurance premium as soon as possible to make the most of FEGLI open season.
Higher FEGLI Rates in 2016 by Kevin Wirth
Kevin Wirth discusses the Higher FEGLI rates in 2016
If you’re enrolled in the FEGLI (Federal Employees’ Group Life Insurance) program, either as an employee or a retiree, you may have recently noticed that your premiums have increased. This is because the FEGLI plan has changed its premiums for those who are currently enrolled, effective as of the first pay period of 2016.
Although the rise in cost is considered to be “slight” for older enrollees (and in fact the cost for those who are in the younger age brackets has actually gone down), the increase in premium can nevertheless be difficult for some who have not had a pay raise lately, or who are living on a fixed income.
Yet, if you’re planning to cancel your FEGLI coverage due to the higher premium, you may want to consider all of your alternatives prior to moving forward, as well as the financial consequences of going without this important financial protection.
For example, most people carry life insurance so as to ensure that their loved ones will not have to endure some type of financial hardship upon their passing. With that in mind, ask yourself what type of debt you may be leaving behind, such as:
- Unpaid mortgage balance
- Personal loans
- Auto loan(s)
- Credit card debt
- Any business loans or debt
You may also have additional financial needs to cover, such as a surviving spouse and / or dependent’s ongoing income – especially if retirement income sources will be reduced or eliminated upon your passing.
In addition, today, even the cost of basic final expenses can exceed $9,000 in many areas of the country now. This is especially the case when factoring in elements such as a burial plot, head stone, transportation, and obituary notices.
So, while the cost of your FEGLI premium may be rising, the cost of going without life insurance protection could be a great deal more. If this particular coverage is too cost prohibitive, though, there may be other options available in terms of an individual life insurance policy or a final expense life insurance plan.
More From Kevin Wirth:
Getting Started Early for a Successful Retirement by Kevin Wirth
Getting Started Early for a Successful Retirement by Kevin Wirth
Kevin Wirth Explains How to Get Started Early for a Successful Retirement
Nearly everyone dreams about the day they can retire. Regardless of whether you plan to hike in the mountains, relax on the beach, or volunteer in a faraway place, one thing is for certain, and that is in order to have a successful retirement, a good plan should ideally be in place.
Unfortunately, though, not everyone has the opportunity to do an ample amount of long-term planning. That may be due to an unexpected health situation, an offer of early retirement, or some other event that has moved up the clock on your leaving the world of employment.
In any case, the good news is that you still have some options on your side for making the most of your finances, as well as your insurance benefits, for your retirement years. The best way that you can ensure success beforehand, then, is to start by taking a good inventory of what you’ve got.
Getting All of Your Retirement Ducks in a Row
As you plan for this next phase of your life, the most important aspects from a planning standpoint will include the following:
- Insurance – Because health care can be a retiree’s biggest expense, you will want to make sure that you have good coverage here. If you won’t be eligible for Medicare yet, and if being added to a spouse or partner’s employer-sponsored health plan also isn’t an option, then there are ways that you can take your FEHB (Federal Employees’ Health Benefits) with you – provided that you meet certain criteria. You will also want to ensure that you don’t leave your loved ones vulnerable to financial hardship when it comes to life insurance. So, be sure that you check into either an individual plan of coverage, or consider taking your FEGLI (Federal Employees’ Group Life Insurance) coverage with you in retirement.
- Financial – A good, solid financial plan is also an essential aspect of a successful retirement. This is because in order to live the lifestyle that you desire, you will need a way to replace your current income. Therefore, you should start by obtaining an approximation of how much you will be receiving from your retirement annuity when that time comes. If you’re covered by FERS, inquire as to how much income you’ll get from Social Security benefits, too. Because this income won’t likely be enough to completely replace your employer’s salary, you will also want to give yourself a boost by maxing your contributions while you still can to the TSP (Thrift Savings Plan). This will help you to obtain a larger amount of payout when the time comes to convert your savings into income down the road.
Once you have actually decided when the big day will be, you will want to get your retirement paperwork filled out in plenty of time. Typically, you should do so approximately two months prior to your actual date of retiring. This will help to ensure that all goes well – and just in case there are any glitches, you will have some time to get things straightened out and back on track.
More from the Author: Kevin Wirth
Kevin D. Wirth and Associates – Federal Retirement Experts
FEGLI and the Living Benefit by Paul Kalra
Paul Kalra, FEGLI and the Living Benefit
Paul Kalra is a financial planner and federal retirement expert in Lake Forest, California.Although most people purchase life insurance for the death benefit protection that it provides, many may not realize that there are other ways in which this financial tool can be used in taking care of additional needs while the insured is still alive.
Commonly referred to as “living benefits,” some life insurance policies today will allow an insured to access the death benefit funds if he or she meets certain criteria, such as being diagnosed with a terminal illness. Today’s FEGLI (Federal Employees’ Group Life Insurance) plans may allow a participant to access this type of feature.
Should the enrollee have a documented medical prognosis whereby he or she has a life expectancy of nine months or less, then they may elect to access a lump sum of cash from their FEGLI plan.
The amount of the lump sum that can be accessed is equal to the participant’s Basic life insurance amount, plus any amount of extra benefit for those who are under the age of 45, that is in effect nine months following the date that the Office of Federal Employee’s Group Life Insurance receives the completed living benefits claim form.1
It is important to note that when living benefits are accessed from a FEGLI policy – or from any life insurance policy – the amount that is taken from the policy will reduce the amount of funds that will be payable to the policy’s beneficiary at the time of the insured’s death.
In the case of living benefits on a FEGLI policy, an annuitant is not eligible to elect only a partial amount of benefit from the plan. Therefore, while an employee may opt to take just a portion of their insurance funds, if an annuitant elects living benefits, his or her survivors will not be eligible for any Basic insurance benefits at the time of the individual’s death.
More about Paul Kalra, CFP, ChFC, CLU:
Paul Kalra has been providing financial services for over 25 years to doctors, business owners and others nearing or in retirement. After a successful career with John Hancock Financial Services,in 2002, Mr. Kalra founded his own firm, Signature America Financial Planning Services, Inc. in Lake Forest, CA.
In his practice as a financial planner, Paul Kalra has found that when people are nearing their retirement years, they are faced with confounding decisions about their retirement plans, 401(k)’s, IRA’s, Social Security, Medicare, life insurance, wealth-preservation and estate planning. What motivated him to focus his practice on helping people in their 50’s and 60’s was when Mr. Kalra began facing such decisions himself and realized that the answers would have been very tough if he were not a financial planner.
Making Wise FEGLI Assignment Decision In Today’s Market
Making wise FEGLI assignment decision in today’s market
You may allocate your Federal Employees Group Life Insurance or FEGLI to one or more persons, firms or trusts. Task implies that you consent to surrender responsibility for Basic, Standard Optional and Additional Optional life coverage scope until the end of time. The trustee turns into the recipient yet you must keep on paying any relevant premiums.
There are three primary things you need to consider before going ahead with the FEGLI protection. To comply with a Court Order–You may make a task of your gathering life coverage keeping in mind the end goal to consent to a court request for separation. Doling out extra security scope to a previous life partner gives a way to guarantee the court that life coverage advantages will be payable to a previous spouse or his or her assigned recipient. Otherwise under the extra security law, a FEGLI protected individual may change his or her assignment of recipient whenever.
For Inheritance Tax Purposes– usually if a task is made no less than three years before a singular’s demise, the FEGLI protection is viewed as a “gift” to the chosen one, instead of a piece of the domain of the safeguarded. Current government domain charge law permits a boundless conjugal finding for that divide of the gross home went to a surviving partner. Along these lines, there is no obvious prompt duty point of preference to doling out responsibility for life coverage arrangement to a companion. Notwithstanding, since state charge laws shift and duty ¬savings under government or state law can be extensive if FEGLI protection continues are not subject to domain charges, it is vital to counsel an able home expense consultant. A determination in respect to whether the extra security continues are incorporated into your gross bequest should at last be made by the IRS. In endeavoring to decide the expense impact of a task, you ought to refer to tax duty laws, case law and IRS regulations. Likewise, you ought to think about getting as a decision from the IRS.
To Obtain Accelerated Death Benefits–You can dole out your extra security to a viatical settlement firm on the off chance that you are in critical condition so as to get a bit of the estimation of your disaster protection before your passing. Consider first whether you could achieve the same objective by choosing a Living Benefit, be that as it may.
A couple focuses to note are – By doling out your extra security, you surrender the privilege to assign recipients and to lessen the measure of protection scope (regardless of the fact that the expense is more than you can manage). Family Optional disaster protection can’t be appointed, in light of the fact that, by law, no one but you can be the recipient. On the off chance that you relegate your life coverage to more than one individual, you must indicate the rate offers for every individual. You are not allowed to name unexpected appointees in the occasion the essential chosen one predeceases you. In the event that the trustee does not assign a recipient, the chosen one is the recipient and will be paid after your passing. This is basically how FEGLI works.
Viatical Settlements and FEGLI
FIRST PUBLISHED ON COMPAREFEGLI.COM
FEGLI and Viatical Settlements
Viatical Settlements, in case you didn’t know, are defined as the sale of a policy owner’s existing life insurance policy to a third party for more than its cash surrender value, but less than its net death benefit. The buyer becomes the policy owner and pays the premiums, and gets the death benefits when you die.
Where FEGLI is concerned, there is no cash value, but that’s not stopping you from assigning it to one or more assignees, and one of these may be a viatical settlement company. READ MORE:
MORE FEGLI ARTICLES:
Evaluating your life insurance policy by Todd Carmack
Converting FEGLI to Individual Life Insurance After Separation From Federal Service
FEGLI Death Benefits Claim Guide
FEGLI Death Benefits Claim Guide
FIRST PUBLISHED ON COMPAREFEGLI.COM If you die while still covered by your FEGLI life insurance, your designated beneficiary or beneficiaries need to file a claim for FEGLI death benefits. The following links contain useful resources to aid beneficiaries in how to pursue these benefits. READ MORE:
MORE FEGLI RELATED ARTICLES:
What is FEGLI Option A, Option B and Option C?
Evaluating your life insurance policy by Todd Carmack
Converting FEGLI to Individual Life Insurance After Separation From Federal Service
Who Gets Your FEGLI Life Insurance Benefits When You Die?
FEGLI – Federal Life Insurance Living Benefits Guide
Death Benefits: Trustee Designation For FEGLI
FIRST PUBLISHED ON COMPAREFEGLI.COM
Trustee Designation For FEGLI Death Benefits
Did you know that federal employees and retirees can establish a trust to receive your FEGLI death benefits? This can be done through an inter vivos (living) trust, or through a testamentary trust that is created through your will upon your death. Your survivors and beneficiaries can then purse the claims to receive the benefits they are due. The following links contain more resources for a survivor seeking to receive FEGLI death benefits. Be sure to remain informed and take advantage of every resource involving FEGLI and receiving death benefits.
These links will give you more information about FEGLI and survivor benefits. Stay informed! READ MORE:
OTHER FEGLI RELATED ARTICLES:
What is FEGLI Option A, Option B and Option C?
Evaluating your life insurance policy by Todd Carmack
Converting FEGLI to Individual Life Insurance After Separation From Federal Service
FEGLI Accidental Death and Dismemberment Benefits
First published on CompareFEGLI.com
FEGLI Accidental Death and Dismemberment (AD&D) Benefits
You or your beneficiaries can claim FEGLI accidental death and dismemberment (AD&D) benefits when you, as the insured, suffer from loss of life, limb or eyesight. The following READ MORE:
OTHER FEGLI RELATED ARTICLES:
What is FEGLI Option A, Option B and Option C?
Evaluating your life insurance policy by Todd Carmack
Converting FEGLI to Individual Life Insurance After Separation From Federal Service
Who Gets Your FEGLI Life Insurance Benefits When You Die?
FEGLI – Federal Life Insurance Living Benefits Guide
Concurrent Employment: How Much FEGLI Coverage Do You Get?
First published on COMPAREFEGLI.COM
How Much FEGLI Coverage Do You Get With Concurrent Employment?
Concurrent employment, in this reference, is where a federal employee is working for and earning federal wages from more than one agency. If you’re wondering when and how this is possible, there are certain situations which make it possible.
For example, you could be temporarily be reassigned to another agency, while still being expected to do some of the work you were already doing for your original employing agency. You could be in nonpay status for a position, and be asked to serve in another capacity for the interim.
In any case, the only eligibility requirement in cases of concurrent employment is that at least one of your positions should entitle you to be enrolled in FEGLI. So the next obvious question is about the coverage amount, and which agency will pay the government contribution towards your FEGLI premiums. READ MORE…
MORE FEGLI RELATED ARTICLES:
What is FEGLI Option A, Option B and Option C?
Evaluating your life insurance policy by Todd Carmack
Converting FEGLI to Individual Life Insurance After Separation From Federal Service
Who Gets Your FEGLI Life Insurance Benefits When You Die?
FEGLI – Federal Life Insurance Living Benefits Guide
Impact of Breaks in Service on Your FEGLI Coverage
First published on CompareFEGLI.com
Impact of Breaks in Service on Your FEGLI Coverage
It’s not uncommon for federal employees to take breaks in service and then come back to work for their employing agency, reinstated into their prior position. Under such situations, what happens to your FEGLI coverage? READ MORE:
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Converting FEGLI to Individual Life Insurance After Separation From Federal Service
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FEGLI – Federal Life Insurance Living Benefits Guide
