FEGLI-Eligibility After Retirement By Steve Holmes

Steve Holmes’ work includes facilitating the acquisition of Revocable Living Trusts and funding a customized trust for each client by focusing on maximizing income, deferring taxes, and preserving capital.  seeks to provide customers the best possible return with safe financial products that provide peace of mind for their retirement. Safety and no-to-low risk is his mantra.

If you’re looking to keep your FEGLI life insurance coverage as you go into retirement then you will have to have been enrolled for at least the five years before you retire. If you don’t meet that requirement, you cannot continue coverage. If you do not want to continue your FEGLI insurance coverage into retirement, or you’re not eligible to, then you are required to either drop the coverage on your own or switch to an individual policy.

FEGLI Coverage After Retirement:

• For FEGLI basic coverage, you have two choices; either to leave coverage at the current level or (starting at age 65) you can choose to let it decrease to 25 percent or 50 percent of its current level. The premiums will vary based on these choices.
• For the first option (Option A), premiums are to be paid until reaching age 65. After that, the premium stops, but 2% of the insurance will drop per month until it reaches 25% (or $2,500).
• For the second option (Option B), you can choose to either continue paying a premium even after the age of 65 to keep the coverage in effect or stop paying premiums and allow the insurance value to be reduced by 2% every month till it reaches 25 percent.
• For the third option (Option C), you can choose to continue coverage unreduced. After the age of 65, you can keep the coverage in effect or you can stop paying premiums and allow the insurance value to be reduced by 2% every month for 50 months, then the coverage ends after that period.

Except for those that are reemployed by the government, life insurance may not increase, even though it may be canceled or reduced. If you are interested in researching your options, or have more questions on your FEGLI coverage, please be sure to reach out to a financial professional for advice and assistance.

Contact Steve Holmes

Phone: 

Office: 865-769-3773

Cell: 865-951-9438

 Email: [email protected]

 

 

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Article: Roth IRA vs. Roth TSP: Which One Should Federal Employees Consider Investing In by Steve Holmes