Waco, TX -- (ReleaseWire) -- 08/03/2016 --Most federal employees will automatically default to a federal life insurance policy, even if it is not the best one for them and their families. FEGLI is the largest group life insurance program in the world, covering over 4 million federal workers. The open enrollment period for FEGLI rarely happens – the last one being in 2004 – so September 2016 represents the only chance for people who qualify to enroll over the next 15-20 years. A new quiz can help individuals with this crucial decision-making process.
"The FEGLI open enrollment period can be a critical decision-maker time for many federal employees and their families," states Gary Aiello, owner of MyFEDBenefits. "We want to make the process as smooth as possible when it comes to selecting the right life insurance which is why we created this special FEGLI Quiz to help federal employees assess their options."
The target market for the new FEGL quiz are:
- Federal government employees
- Ages 55+
- Who are considering retirement in the next 3-5 years
The questions are basic inquiries into health and workplace status. One benefit of the "open season" period in September is that eligible federal workers can enroll or increase coverage without taking a physical examination or experiencing a qualifying life event such as a marriage, divorce, death of a spouse, or caring for a child with a disability. Open seasons are designed to attract more healthy individuals to the pool, but less healthy individuals may take advantage of this period too.
Basic FEGLI coverage is fairly straightforward – equal to one's base pay rounded up, plus $2,000. For example, someone making $42,400/year would receive $45,000 in coverage. In addition to the Basic plan, there are three forms of Optional insurance to choose from. Option A provides $10,000 to beneficiaries in the event of the government worker's death; Option B lets workers choose 1,2,3,4, or 5 multiples of base pay (rounded up) to be paid out upon death. Option C for families provides automatic coverage for all eligible family members in increments of $5,000.
While the FEGLI deduction is relatively inexpensive for young people, FEGLI is not the most cost-effective option for life insurance in the long run. "If you're under 35, a sample plan would be something like $250,000 coverage for just $5 per pay period," explains Aiello. "However, the rates continue to periodically increase as you age so that by 75, you're paying $450 per pay period." Once retirement occurs, workers will only have the option to reduce coverage and will be locked into rate increases. Even so, it may be a good option, particularly if people have health issues or higher risk jobs, says Aiello.
In addition to the FEGLI quiz, the MyFEDBenefits website also offers access to one-on-one consultants, a free benefits workbook, and recent news articles pertaining to federal employee benefits.
Interested government workers nearing retirement can get more information at www.MyFEDBenefitsHelp.com.
About MyFEDBenefits
MyFEDBenefitsHelp.com is a website geared toward helping federal employees identify and take advantage of the best benefits available to them, so they can retire with the standard of living and lifestyle they have earned. Information on TSP, FEGLI, FERS, CSRS are among the many retirement options clearly explained on the site. With several decades of advisory experience and a team of Chartered Federal Employee Benefits Consultants on staff, MyFEDBenefits is a name you can trust.
