When you started your job in one of those cavernous government buildings downtown, you probably knew that you were sacrificing the dream of a corner office or keys to the partners’ restroom in exchange for the infamous federal government employee benefits.
The vacation, sick leave, telecommuting, healthcare, and Thrift Savings Plan are all wonderful, but the many options offered by Federal Employee Group Life Insurance often go overlooked.
So the next time you find yourself sitting at your computer analyzing the various TSP funds or crunching the numbers on that retirement calculator like a Vegas slot machine (just one more time!), reserve a few minutes to ask yourself:
Did I really select the best FEGLI option this year? Of course, there’s a lot to consider before that question can be answered.
FEGLI Option B
When looking for more than just the basic FEGLI coverage, it is the impulse of many young Federal Employees to choose Option B, because of its very low upfront cost.
However, they often don’t realize how much the expense will climb every five years starting at their 40th birthday.
The hit their paycheck takes as a result causes many of them to drop the Option B coverage and be forced to pay significantly higher rates for a new FEGLI option than they would have paid originally.
Options Outside of FEGLI
The remaining options outside of FEGLI are certainly not ideal either—forgo the additional (often necessary) coverage altogether, or try to navigate alone through the private market in a tank full of insurance sales sharks.
While Option B does have its place in certain financial planning strategies, such strategies are complex and not often acquired downstairs in your agency’s HR department.
Sound, professional advice from someone who is not only an expert on Federal Employee benefits but also well-qualified to provide comprehensive and certified financial planning services is essential to anyone considering a change to their FEGLI plan.
For over 30 years, federal employee retirement planning has been a key focus of Medallion Financial Group. We recognize that FERS retirement benefits have extra layers of complexity, such as the Thrift Savings Plan (TSP), 401K, Pension plan, FEGLI and more. It’s easy to get lost in a sea of bad advice when so few people understand the basics. We help with the basics and beyond to enable our clients to get the education and advice they need to retire with confidence.
Our focus is twofold: first and foremost, we are fiduciary advisors. We stand against any violation of laws, values, and ethics. Second, we treat our clients as part of our family, not only those who call Maryland and Georgia home, but clients across the US who have benefited from our reputation of personal service, integrity, and expertise.
We strive to exceed client’s expectations – because we have high expectations of ourselves.