Losing FEGLI Coverage – What If It Happens? – Joe Carreno

Unfortunately, there are certain circumstances in which you may lose FEGLI coverage. Although leaving the government (not including retirement) is the most common reason, this also includes:

 

•    Terminated annuity

•    Moving across to a new role with no FEGLI coverage provision

•    When pay/annuity after deductions is too small

•    When in a non-pay status for one full year

 

Of all these reasons, the most common two are when leaving the government and when moving to a role (even a federal job) where FEGLI coverage isn’t provided. Sometimes, it’s an intermittent or temporary position expected to end within a year.

 

What happens when coverage is lost? Along with a free 31-day extension, you’re also entitled to convert existing coverage to an individual policy. As long as you have this coverage under Basic, Option A, or Option B, there’s no need to show medical insurability evidence. Remember, you’ll pay for 100% of this new policy rather than just a portion as a group policyholder.

 

In terms of payments, they will depend on four main factors:

 

•    Policy type

•    Amount of insurance

•    Risk category (on the end date of group insurance)

•    Age

 

Please note that you have 31 days to apply from the day coverage stops; from here, it can be written at an amount less than or equal to the coverage in the group policy.

 

In the future, you could return to a federal job where FEGLI coverage is provided. If this is the case, you may be entitled to re-enroll. For example, assuming you’re medically insurable, you can do this in an open season. Alternatively, a certain life event may have occurred, such as the birth of a child or marriage. Sadly, it’s incredibly difficult to get back in once retired.

Contact Information:
Email: [email protected]
Phone: 8139269909

Bio:
For over 30-years Flavio “Joe” Carreno of The Retirement Advantage has been a Federal Employee Retirement System specialist (FERS) as well as a Florida Retirement System specialist (FRS) independent advocate. An affiliate of PSRE (Public Sector Retirement Educators), a Federal Contractor & Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants. We will help you understand your FERS & FRS Benefits, TSP & Florida D.R.O.P. withdrawal options in detail while recognizing & maximizing all concurrent alternatives available.Our primary goal is to guide you into retirement with no regrets; safe, predictable, stable, for life. We look forward to visiting with you.

Disclosure:
Not affiliated with the U.S. Federal Government, the State of Florida, or any government agency. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Although we make great efforts to ensure the accuracy of the information contained herein we cannot guarantee all information is correct. Any comments regarding guarantees, safe and secure investments & guaranteed income streams or similar refer only to fixed insurance and annuity products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC insured.

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