FEGLI
FEGLI or the Federal Employee Group Life Insurance is a group life insurance policy that covers most of the federal employees.
FEGLI – Some Basic Facts
Basic FEGLI facts
Federal Employees Group Life Insurance (FEGLI) can be transported into retirement. As with your Federal Employee Health Benefis (FEHB) each employee must meet the five year or earliest opportunity to enroll requirement to continue coverage into retirement.
If you fail to meet the time requir
ement prior to retirement, coverage will continue for 31 days at no cost to you with the option to convert to an individual policy. Employees eligible to continue coverage into retirement must elect to do so, it is not an automatic conversion.
The cost of your life insurance depends on a number of factors: your age, the amount of coverage selected, and health risk factors. If you decide to convert some or all of your policy, the good news is you will not be subject to a medical examination to qualify for conversion.
It should also be noted that there is generally no open season for FEGLI. However, in the rare instance where there is an open season, it is generally not open to retirees.
It should be further noted that accidental death and dismemberment coverage available to you as an active employee is not available to you in retirement as part of the government’s insurance program.
Know the facts about FEGLI as life insurance is a very important part of the planning process to RETIRE WELL.
P. S. Always Remember to Share What You Know.
Federal and Postal Retirement Planning
Let’s Talk FEGLI
FEGLI
FEGLI (Federal Employees Group Life Insurance) is Group Term Life Insurance offered to Federal and Postal employees. Federal and Postal Employees are offered a number of great benefits to help them take care of themselves and their families.
Life Insurance has long been thought of as protection for family members in the event of death, more of a burial insurance. Life insurance covers burial expenses or what I like to refer to as taking care of “the final business of our lives.” In addition to covering burial expenses, life insurance may also be used to cover other outstanding debt as well as provide for survivors.
The federal benefit plan is designed to provide its members with a comprehensive array of services to protect and enhance the lives of members and their families——–Health Insurance (FEHB), Vision and Dental (FEDVIP) coverage, a Pension plan, a way to save for retirement via the Thrift Savings Plan (TSP) and the means to prepare for the final business of our lives —life insurance.
We will discuss in later posts The Provisions of FEGLI, How FEGLI Works in Retirement and Life Insurance – WHY?
P. S. Always Remember to Share What You Know.
Click HERE for information on Social Security
Click HERE for information on Federal Retirement
Click HERE for information on FEGLI
Click HERE for information on TSP.gov login
Tips to Getting Your House in Order to Retire Well
~~Sharing Information
Pension systems and retirement plans often have many provisions that can be challenging to navigate and understand, the Federal Retirement Systems are no different. However, sharing information and provisions of your retirement system with spouses, partners and family members are important.
There are questions to be considered when putting plans in place for retirement, be it at the end of one’s career or at the beginning. Sharing information is key to proper planning.
• Are the people involved in your life appropriately aware of your financial picture (your Thrift Savings Plan, FEGLI selections, Last will, etc.)?
• Do they share the same financial values, objectives and goals as you?
• How will the loss of your income impact their ability to independently handle finances?
• If you’re a postal employee – have you printed out and saved copies of your LiteBlue.usps.gov information?
• Has there been a discussion as to the location of important documents and files including any TSP withdrawals?
• Do they know who to contact in the event of a tragedy at your place of employment and what action to take concerning your benefits?
• Have you talked with them about your Thrift Savings Plan , your Annuity, how much they might receive from your (FEGLI) life insurance and who your beneficiaries are if you were to pass?
Whether you are single or married everybody needs someone they trust to know these things. Sharing information with these trusted individuals ensures fewer details are missed.
Everybody needs a partner when it comes to planning the business of our lives and for planning for the safety and security of retirement.
P. S. Always Remember to Share What You Know.
Access your TSP.gov account from here
Retire Well – Retirement Application
About the Retirement Application
We spoke briefly about the retirement application package in a previous post. The question of when the Retirement Application should be completed is relevant in evaluating your check list of things to do in order to take full advantage of your Federal and Postal Benefits.
Reading carefully all of the information in the Retirement Application package is a must before submission. There is no need to submit a letter of resignation since your completed application is equivalent to a resignation. Further, if you are eligible for benefits it is important not to resign with the intent of retiring later. Suppose you were to pass away after leaving your employment but before submitting your retirement application.
You would have no life insurance, no survivor benefit and no survivor health care coverage available to your survivors. It is always a good idea to talk to your human resource office when making important decisions that impact you and your family. Make sure your FEGLI coverage is appropriate for your needs and that you have a plan for your TSP.
P. S. Always Remember to Share What You Know.
LINKS
Learn more about your FEGLI coverage
Frequently Asked Questions about Federal and Postal Retirement
Tips to Getting Your House in Order to Retire Well – Annual Leave
— Annual Leave
There are so many things potential retirees must consider when looking forward to the next adventure in life – retiring well. Although many people will not consider their accrued Annual Leave a prime subject when discussing retirement, your Annual leave needs to be considered both for you peace of mind and the ability to recharge your batteries away from work, but also for the potential retirement benefits for leave that is not used. Obviously, you should be taking advantage of your TSP account and making sure that you are prepared to maximimize any CSRS and FERS benefits you might be eligible for. But you also need to recognize that you have worked for a long time, most of us since high school. Once we entered the work world there was no turning back because we had to make a living. Having a job and taking on the responsibilities of life afforded us membership into the world of bona fide ADULTS.
There might have been times during your work career where accumulating annual leave meant taking a vacation or using your leave at your leisure. But when we start planning the next phase of our lives – retiring well – part of the process is making sure you are maximizing every benefit available to you. That includes viewing Annual Leave as money that will help sustain you as you transition from the work world into retirement.
You may wish to refresh your knowledge about Interim Payments and how it can be used to bridge the gap from retirement to full Annuity payments, because your lump sum annual leave payment is another piece of the puzzle we need to collect in order to make it complete. Preserving your annual leave when you are contemplating retirement is a way of building a cushion to cover your financial responsibilities until you receive your full annuity payment. The Lump Sum Payment you receive as a result of your annual leave accrual will create comfort and security; thus the importance for preserving as much annual leave as possible as you prepare to move into retirement.
The maximum annual leave carryover for most employees is 30 days or 240 hours. It is a good course to visit your human resources office or with a knowledgeable financial professional and discuss the importance of understanding the beginning and ending of the leave year versus the calendar year. Retiring before the end of the leave year impacts your annual leave accrual. Find out what you need to know in order to maximize every benefit that is available to you.
P. S. Always Remember to Share What You Know.
LINKS
For more information on your Interim Payments and retirement income sources
Your TSP (Thrift Savings Plan) structure and investment options
How can your accued Annual Leave be used as a retirement tool
