What is Life Insurance?
Life Insurance is a contract. If you pay the insurance company a certain amount of money each month and if you pass away during the contract period, the insurance company will pay your beneficiary a fixed amount of money.
What is FEGLI?
Federal Employee Group Life Insurance (FEGLI) is a group term life insurance program provided by MetLife and sponsored by the Federal Government.
This particular program is only available to Federal Employees and is typically cheaper than an individual policy. There are three types of FEGLI available.
All new Federal Employees are automatically enrolled, so if you don’t want this coverage, you have to tell HR that you want to opt out.
The payout is your annual basic salary at the time of your death, rounded up to the nearest $1,000, with an extra $2,000 added to that.
The cost is 15¢ for each $1,000 of coverage each biweekly pay period.
For an additional $10,000 of coverage, you can add Option A along with your Basic coverage.
If you are under 35 years old, the cost is 20¢ each biweekly pay period. The price goes up every five years until you reach age 60.
Option B provides extra coverage for up to five times your basic annual salary.
If you are under 35 years old, the cost is 2¢ per $1,000 of coverage each biweekly pay period. The price goes up every five years until you reach age 80.
Option C allows you to take out life insurance for your spouse and children, in multiples of $5,000 for your spouse and $2,500 for your children.
You can purchase from one to five multiples of coverage for your family. Children only qualify if they are under 22 years old, or have developed a qualifying mental or physical disability before reaching age 22.
If you are under 35 years old, the cost is 22¢ per multiple each biweekly pay period. The price goes up every five years until you reach age 65. Each multiple you purchase applies for all qualified family members and does not change depending on how many children you have.
You and your family deserve peace of mind that comes with knowing their finances are taken care of. We would feel privileged to help you set up your finances as a federal employee!
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 stand against any violation of laws, values and ethics. Second, we treat our clients as part of our family, putting their needs before our own. We strive to exceed client’s expectations – because we have high expectations of ourselves.