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  • Federal Employees Group Life Insurance

    Just recently started a new gig as a federal employee physician. Never been a fed employee previously, so bit of a learning curve in many ways.
    Anyway, there is a small collection of different benefits I can optionally choose from and all of them have deadlines for enrollment, the soonest of which is for the Federal Employees Group Life Insurance.
    From what I can gather, it appears I'm automatically enrolled in the Basic option which will give my wife one year's worth of my salary should I keel over. I think this taking about $80 month out of my pay.
    I can also choose Option B, in which I can opt for up to 5 multiples of my salary to go to her if I croak and option C in which I can opt of up to five multiples of $5k each that would come to me if she died (so a max of $25k to me). I think if I were to get dismembered, there would also be some sort of payout, but I can't remember the details. (unfortunately, the only way I seem able to really study the details of the benefits and/or enroll in any is through a work computer that is equipped with a Common Access Card reader, so all of the above is from memory as I'm typing this on my personal computer at home).

    I don't really understand all the ins and outs of different types of life insurance. I know I should, but whatever. For now at least, I'm a total noob.

    Not looking for a deep personal financial analysis as I know that nobody here can really offer that without knowing more about our individual finances and situation, but just in a more general sense, do the wise sages here think I should consider any of the optional stuff beyond the automatic basic plan?




  • #2
    Do you have any other type of life insurance? I do the basic at my job, as it is no cost to me. My husband has the same option, and we take whatever is no cost to us. However, we have a term policy that is much cheaper than what your costs are for your plan, and provide a lot more. You'd likely do better with your own policy not through work.

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    • #3
      When I looked at it, it was clearly more expensive than a regular term policy. Which makes sense, as it is guaranteed issue. If you're young and reasonably healthy not a good deal.

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      • #4
        Group policies are fine for those are don't care or wouldn't otherwise get life insurance but having your own term policy that stays with you and not the job is probably the best solution.

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        • #5
          If you need a term life insurance policy, get your own individual term life insurance policy.

          The basic FEGLI policy is useful in that the government will pay for 25% coverage for you at (I think) age 65 once you retire. Take the early career retirement course and see how your FERS pension, FEGLI, and Federal Employees Health Benefit insurance work, both now and in retirement. Also make sure you have your TSP set for an appropriate mix of C, S, and perhaps I and G fund investments. Make sure you’re on track for $19,500 this year into TSP and $20,500 next year, spread out over 26 pay periods next year.

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          • #6
            Originally posted by Hank View Post
            If you need a term life insurance policy, get your own individual term life insurance policy.

            The basic FEGLI policy is useful in that the government will pay for 25% coverage for you at (I think) age 65 once you retire. Take the early career retirement course and see how your FERS pension, FEGLI, and Federal Employees Health Benefit insurance work, both now and in retirement. Also make sure you have your TSP set for an appropriate mix of C, S, and perhaps I and G fund investments. Make sure you’re on track for $19,500 this year into TSP and $20,500 next year, spread out over 26 pay periods next year.
            Hmm didn't know that about 65yo. Now that I'm thinking about it I think I waived all FEGLI. I'm pretty sure none of it is free for me. Apparently for USPS it is..

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            • #7
              FEGLI is useful if you need life insurance and can not qualify on your own (or what you qualify for is too expensive) because of your health.

              If you are relatively healthy it is much cheaper to drop it and get your own individually underwritten policy.

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              • #8
                Is there a FERS group disability insurance? Pretty topical question, methinks, given open enrollment.

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                • #9
                  Thanks everybody for the replies. Based upon them, I'll just accept the basic plan automatically "given" by the employer. We already have a term policy that lasts until 2028, so will count on that as our main life insurance for now.

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                  • #10
                    Originally posted by Marko-ER View Post
                    Is there a FERS group disability insurance? Pretty topical question, methinks, given open enrollment.
                    You are eligible for FERS disability after 18 months. You don’t need to enroll other than paying into FERS (which you can’t opt out of anyway). Details/rules on opm.gov—just google FERS disability

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                    • #11
                      Originally posted by DrSam View Post
                      Just recently started a new gig as a federal employee physician. Never been a fed employee previously, so bit of a learning curve in many ways.
                      Anyway, there is a small collection of different benefits I can optionally choose from and all of them have deadlines for enrollment, the soonest of which is for the Federal Employees Group Life Insurance.
                      From what I can gather, it appears I'm automatically enrolled in the Basic option which will give my wife one year's worth of my salary should I keel over. I think this taking about $80 month out of my pay.
                      I can also choose Option B, in which I can opt for up to 5 multiples of my salary to go to her if I croak and option C in which I can opt of up to five multiples of $5k each that would come to me if she died (so a max of $25k to me). I think if I were to get dismembered, there would also be some sort of payout, but I can't remember the details. (unfortunately, the only way I seem able to really study the details of the benefits and/or enroll in any is through a work computer that is equipped with a Common Access Card reader, so all of the above is from memory as I'm typing this on my personal computer at home).

                      I don't really understand all the ins and outs of different types of life insurance. I know I should, but whatever. For now at least, I'm a total noob.

                      Not looking for a deep personal financial analysis as I know that nobody here can really offer that without knowing more about our individual finances and situation, but just in a more general sense, do the wise sages here think I should consider any of the optional stuff beyond the automatic basic plan?


                      If you are saying the employer is automatically going to enroll you in a life insurance policy that is going to cost you $80 per month and it is then only for 1x your salary I would probably have a real problem with that unless your salary is north of $1 million and your age is older than 50. You should price shop that and come up with a better solution.
                      Scott Nelson-Archer, CLU, ChFC
                      281-770-8080 Direct / [email protected]

                      Comment


                      • #12
                        Originally posted by Scott at MD Financial Services View Post
                        salary is north of $1 million
                        0% chance of that lol

                        Comment


                        • #13
                          Originally posted by Scott at MD Financial Services View Post

                          If you are saying the employer is automatically going to enroll you in a life insurance policy that is going to cost you $80 per month and it is then only for 1x your salary I would probably have a real problem with that unless your salary is north of $1 million and your age is older than 50. You should price shop that and come up with a better solution.
                          The employer is the U.S. Fed Govt. I might be mistaken, but I'm under the impression that this basic policy isn't an optional thing for me. My recollection is that the total price for the insurance is a bit higher than this. I think it takes something like $43 per paycheck from me (pay is bi-weekly), which c omprises 2/3 of the premium and the govt kicks in the other 1/3.

                          Salary is well south of $1 million. Laughably well south.

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                          • #14
                            Originally posted by DrSam View Post

                            The employer is the U.S. Fed Govt. I might be mistaken, but I'm under the impression that this basic policy isn't an optional thing for me. My recollection is that the total price for the insurance is a bit higher than this. I think it takes something like $43 per paycheck from me (pay is bi-weekly), which c omprises 2/3 of the premium and the govt kicks in the other 1/3.

                            Salary is well south of $1 million. Laughably well south.

                            I also thought that the FEGLI basic insurance was not optional for me --- but it's just that we are automatically enrolled into it. However, we can cancel it (see step 5 on this form: https://www.opm.gov/forms/pdf_fill/sf2817.pdf). I'm currently paying a little over $50 every 2 weeks for it (with the recent premium increase), so I'm in the process of shopping around for term life insurance so that I cancel the FEGLI basic insurance soon.
                            Last edited by mercredis; 11-11-2021, 07:58 AM. Reason: edited for spelling

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                            • #15
                              Originally posted by mercredis View Post


                              I also thought that the FEGLI basic insurance was not optional for me --- but it's just that we are automatically enrolled into it. However, we can cancel it (see step 5 on this form: https://www.opm.gov/forms/pdf_fill/sf2817.pdf). I'm currently paying a little over $50 every 2 weeks for it (with the recent premium increase), so I'm in the process of shopping around for term life insurance so that I cancel the FEGLI basic insurance soon.
                              Yes that's what I did

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