Category: Federal Health Insurance

The Federal Employee Group Life Insurance program, or FEGLI, is one of the many FERS benefits available to federal employees. You can get group life insurance while you’re employed, and under some circumstances, you might be able to keep using it after you retire.

Young federal employees are urged to get life insurance via FEGLI if needed, especially if they have a family or would leave someone else to care for if they pass away. The amount of insurance you require varies based on several factors, but FEGLI is affordable and can typically be afforded at the highest level when younger. FEGLI becomes more expensive as you age and may no longer be affordable, especially if your retirement plan predicts that you’ll also need long-term care insurance coverage.

The Importance of Life Insurance

Both young and old may find life insurance to be helpful. The most common life insurance application is to replace lost income while working. FEGLI is the most affordable option for meeting this demand while employed. Term insurance offers the next best instant price.

It’s crucial to remember that there are various schools of thought regarding the appropriate amount of life insurance. What would you wish you had done to support your family after you passed away? Replacing the financial resources you would have otherwise contributed is one straightforward solution. Many people want to use their early death to pay off their home and their children’s college loans.

Another way to look at it is to ensure that the current objectives are still reachable for those you leave behind.

Your FERS pension is secure as a qualified federal employee up until the time of your passing. Your surviving spouse could receive up to 50% of your FERS annuity if you chose the survivorship benefit. Over time, that loss can become substantial, reducing one of your Social Security benefits, particularly if one spouse passes away significantly sooner than the other.

Term insurance provides life insurance for a set amount of time (term). This can often be purchased in 5-year installments between five and 30 years. Utilizing this to cover a particular risk at certain points in your life is preferable. If both of you pass away or just one of you, things like having money set aside for mortgage payments, student loans, preschool, college, weddings, etc., would be helpful.

Renewing is pricey beyond your “term.” Insurance companies may occasionally allow holders of term policies to upgrade to a permanent policy at the age they reach without undergoing additional medical testing. Your advanced age may significantly raise the expense of waiting. Furthermore, the policy you would select today and the policy that would be presented to you upon conversion might not be the same.

Considering Long-Term Care Insurance

One vital thing to remember is that neither the FEHB nor Medicare will pay for lengthy long-term care requirements. A Medicare component covers the initial few months of an event, but any expenditures incurred beyond that are your own.

Long-term care events often last two to three years. At this point, you may need to live in an assisted living or skilled nursing facility, or you may need assistance from caregivers who visit your home. The duration of long-term care events has occasionally increased to five or six years due to advancements in medical care.

A long-term care event may be self-insurable for some families with no problem. These prices may vary significantly depending on where you live and the type of service you receive.

FLTCIP first seems to be a reasonable purchase, but its price gradually rises over time.

The Premium Stabilization Feature  (PSF) of FLTCIP is one great advantage. These conventional long-term care insurance policies typically have prohibitive costs as you get older. Due to the expense, many families renounce their insurance just as their children reach the age when they most need it. Long-term care insurance costs typically increase dramatically over time, but not when they are included in specific insurance policies. The PSF for FLTCIP is determined by taking a percentage of the premiums paid for the FLTCIP 3.0 group policy.

The PSF amount may reduce your future premiums or result in a premium death benefit reimbursement. If you haven’t opted out, are 85 years old or older, and have participated in FLTCIP 3.0 for at least ten years, you are eligible for this. Additionally, you need to have enough PSF to cover 50% of your monthly premiums for the upcoming 12 months or longer. The premium refund death benefit is calculated based on your coverage at the time of your death. The remainder would go to your beneficiary.

Insurance prices may be less high the earlier you plan and get the coverage you require. But this does not imply that you should buy insurance right now. It involves attention, study, and must-have features that suit your needs, just like purchasing a car.

Similar to purchasing a car, if you’re not diligent, insurance too might have a lot of unnecessary and hidden charges. Certain carriers specialize in various types of insurance. Some have ideas that work well in one area but poorly in another. As your future is at stake, be sure your advisors are having these crucial conversations with you.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

Social Security is a significant source of retirement income, particularly for women. But how well do you comprehend the advantages you are entitled to? Here’s what you should know about social security for women.

1. Women in retirement face more financial difficulties than males.

Although women rely on Social Security more than men, their payouts are usually less. After all, you earn more Social Security credits and receive larger benefits if you work more and pay more taxes. According to the Social Security Administration, women often live longer but earn smaller pensions and have fewer assets than men.

Women should make sensible investments and be aware of the Social Security benefits to which they are entitled if they want to avoid financial difficulties in retirement.

2. You can begin receiving partial benefits at age 62.

The Social Security Administration (SSA) states that you can begin collecting partial benefits at age 62 if you have been employed and paid Social Security taxes for at least ten years and have accrued at least forty work credits.

You will receive all your legally due benefits if you wait until you reach full retirement age.

Depending on your birth year, the SSA defines “full retirement age” as being between 66 and 67. Locate the chart on page 7 of SSA Publication 05-10024 to know your exact full retirement age.

3. Marital Status Doesn’t Limit Social Security Benefits

According to Christopher Liew, CFA charter holder and creator of Wealthawesome.com, you and your spouse can apply for Social Security benefits independently and individually. However, you both must have prior employment history and separate service records.

That implies that your combined retirement benefits should automatically exceed $3,500 per month if you have a claim for $2,000 per month and your spouse has a claim for $1,500 per month. You are not just allowed to receive 50% of your spouse’s pension, which is surprising.

4. You are often paid a higher rate if you are eligible for two benefits.

If you’re married, you might qualify for a portion of your spouse’s Social Security payment, ranging from one-third to one-half. Women with a spotty job history will find this helpful.

You’ll likely get the benefit with the highest rate, though, and not both. Because of this, most working women in retirement receive their own Social Security pension rather than their husbands.

The higher your spousal Social Security benefit or your own Social Security benefit will be paid to you as a spouse.

5. Working While Retired Can Reduce Social Security Benefits

You become eligible for a portion of your Social Security benefits when you turn 62. But if you choose to continue working while getting those benefits, the Social Security Administration will lower your payouts by $1 for each $2 you make over the yearly cap, which is $19,560 in 2022.

The Social Security Administration (SSA) will only lower your benefits by $1 for every $3 you earn beyond the yearly cap ($51,960 in 2022) if you continue to work in the year you reach full retirement age. Your benefits won’t be cut in this way after you hit FRA.

6. Widows are Entitled to Social Security Benefits From Their Spouse

A widow may be eligible for 71% of her deceased spouse’s benefits at age 60. Once a widow reaches the full retirement age, this percentage increases to 100%.

The SSA might be able to provide you with a lump sum payment of $255 if you were cohabitating with your spouse at the time of their death.

7. You May Still Be Eligible for Your Ex’s Benefits If You’re Divorced

You might believe that once you get divorced, all of the financial advantages of marriage are lost. But it doesn’t usually work that way when it comes to Social Security.

If you are currently single and your ex-spouse was married for at least ten years, you might be eligible to file for benefits depending on their employment. (This does not reduce the advantages they get.)

Just make sure that neither of you was married to anybody else when you were eligible for Social Security pension benefits. Your ex-service spouse’s history will determine how much of a Social Security pension you can receive.

During the divorce process, some women might consent to waiving their claim to their ex-spouse’s social security benefits. But the SSA hardly ever carries out these orders.

If you are aged 60 or older, and your ex-spouse has passed away, and you want to know your exact full retirement age, you are still eligible to receive benefits based on their job (or 50 if you have a disability).

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

Life insurance is essential in safeguarding loved ones and establishing a secure financial future. A life insurance policy assures that an early death does not have a financial impact, resulting in a significant loss in quality of life when the deceased individual no longer contributes income or services to the home.

Buying a life insurance policy is a significant decision. Sadly, many people make mistakes. These mistakes could cost policies more or not give the right kind of protection.

Nobody wants to make a mistake while buying one of the essential financial products in their lives; therefore, it’s critical to avoid these five common mistakes.

1. Designating One’s Estate as The Beneficiary of One’s Life Insurance Policy.

 When a life insurance policy owner/insured selects their estate as the beneficiary, the life insurance proceeds are subject to probate at the time of death. If the policy owner dies in a state with an inheritance tax, the proceeds may be subject to the inheritance tax when they should not be.

Furthermore, identifying one’s estate as the beneficiary can result in creditors having complete access to the life insurance proceeds. This is true even though most states’ laws exempt life insurance proceeds owed to identified beneficiaries, such as a spouse, child, or sibling, from creditor claims.

2. Failure to Identify Contingent Beneficiaries

Suppose the owner of a life insurance policy has designated a single beneficiary, and this beneficiary predeceases the policy owner/insured. This will unnecessarily expose the estate to all the issues described in #1. The solution is to name contingent beneficiaries who will take over as primary beneficiaries if the specified beneficiary dies.

3. Not Reviewing the Policy At Least Once in Three Years

Most life insurance policyholders have specified beneficiaries, a former spouse, or other individuals the deceased policy owner/insured would have wanted to receive the life insurance proceeds. There have been cases of children born after purchasing a life insurance policy who were not specified as beneficiaries.

To avoid such incidents, the policy owner/insured should evaluate their life insurance policy regularly for the following items:

• Who are the stated beneficiaries, and are they still alive?
• Ensure that the life insurance policy beneficiaries receive the proceeds in the manner best suited to their requirements.

4. Purchasing the Incorrect Type of Life Insurance Coverage

 An individual purchases a short-term (less than 10 years) life insurance policy that will expire when the policy is most needed. If a life insurance policy does not pay out when needed, it’s not providing the “peace of mind” promised.

The solution is for a person looking to purchase a life insurance policy to consult with a knowledgeable life insurance professional to determine if the potential policy owner is applying for the appropriate type and amount of life insurance (term insurance or permanent insurance) based on their needs and circumstances. Suppose a person is considering replacing an existing life insurance policy. In that case, you should note that in recent years, new forms of life insurance plans have been available that were not previously attainable or considered. These plans may be more suitable for the policyholder’s current needs and circumstances than the policy owner’s current insurance policy.

5. The Face Amount of The Life Insurance Isn’t Enough to Meet the Financial Security Goals of The Policy Owner/Insured Family

The primary needs of a family are food, clothes, housing, and education. The parent who is the primary (and maybe the only) wage earner for the family must ensure that if they die and cannot provide for the family, they are insured for a sufficient amount of life insurance to satisfy all of the family’s future primary needs. The critical concern is thus: Will loved ones have enough finances to pay bills and costs after the primary income earner’s death?

You should do an income needs-based insurance study if you want a policy primarily to provide income protection for family members. A thorough insurance study of what a person has and what their family would require should they pass away is necessary to obtain the right amount of life insurance.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

The Office of Personnel Management (OPM) data shows that the retirement backlog has reached a new high of 36,603, which was last recorded in March 2013.

The current backlog of OPM retirements is 36,349. It has increased by 16% in 2022 and 48% since its low point of 24,619 in May 2021. Recently retired federal employees waiting for their claims to be processed did not expect to miss the days when the OPM retirement backlog was “only” 24,000 claims.

The number of retirement claims received by OPM’s retirement services office was higher than usual last month. The backlog grew because OPM received 10,042 new claims and only processed 9,117. It increased by nearly 3% at the end of February.

Despite fluctuations over the last five years, OPM’s retirement backlog has increased by 77% since March 2017.

How long does the OPM take to process a federal employee’s retirement claim?

The Office of Personnel Management (OPM) claims to process federal employee retirement applications in 60 days on its website. With such a large backlog, it’s understandable that some new federal retirees may have to wait longer.

This is an OPM website response to one of the frequently asked questions:

“Retirement Services makes every effort to process retirement claims within sixty days. However, if we require additional information from you or your previous employer, your claim may take longer to process. If your retirement claim, for example, has unique conditions, it may take longer than usual (e.g., applying a specific retirement law, evaluating a court order, etc.)

It may also take longer if we need to contact you to make a benefit election (such as a service credit deposit), if we need to contact your former employer for further information, or if a benefit from another agency, such as the Social Security Administration, affects your claim.”

What Can Federal Employees Do to Make the Retirement Application Process Go More Quickly?

According to OPM, the most straightforward approach to minimize delays is to submit your retirement application packet early and double-check that everything is in order. Another question from the OPM website:

“By submitting your application ahead of time and ensuring that your Official Personnel Folder (OPF) is complete, you can assist reduce processing delays. Your personnel and payroll offices will be able to finish their actions before your retirement date if you submit your documentation early.”

How to Avoid Common OPM Retirement Application Errors

Any errors on your OPM retirement application packet will only slow down the process further, so be sure you don’t make any.

Initial retirement cases completed in less than 60 days took an average of 44 days, while those completed in more than 60 days took 128 days.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

Medicare Part A covers hospitalizations, surgeries, long-term care, and certain home care. Medicare Part B covers doctor visits, outpatient therapy, proactive therapies, and necessary hardware. As a result, it is essential to investigate any coverage gaps before deciding whether a Medicare beneficiary should include Medicare Advantage, which is Part C, or Medicare Part or Medicare insurance in their overall health care strategy.

What kinds of medical services do Medicare and Medicaid not pay for?

The following medical procedures are not included in the scope of coverage provided by Original Medicare.

• Prescribed medication
• Long-term care services
• Both taxes and co-pays are required
• The use of hearing devices
• Regular eye care
• Regular dental treatment, involving implants

Most prescribed drugs are not covered by Original Medicare; however, beneficiaries can address this coverage gap by enrolling in either Medicare Part D or Medicare Advantage during the yearly open enrollment season, which runs from October 15 through December 7.

There are even some exemptions to the exclusions.

In certain situations, Medicare Part B will pay for medications that are to be taken outside of the hospital.

The administration of medications that are supported by Medicare Part B normally takes place in an outpatient medical environment, such as a doctor’s office or hospital clinic.

Examples of such medications include those that are injected for osteoporosis and those that are prescribed to be used in conjunction with long-term medical devices.

Care for the Elderly

When it comes to out-of-pocket expenses, long-term care often accounts for the largest share.

The Original Medicare coverage does not extend to long stays in nursing homes or assisted living facilities, as well as visits to domestic care centers. Care that is highly technical and received in a skilled nursing facility is covered under Medicare Part A for up to 100 days throughout the beneficiary’s benefit term.

Medicare will pay for treatment in full if the patient has been an inpatient at a hospital for at least three days and if they are admitted to a facility typically within the first 30 days following being discharged from the hospital.

It is essential to bear in mind that Medicare Advantage does not cover expenses that relate to longer-term care, and it is critical to remember this fact.

In this scenario, purchasing private long-term care insurance is going to be your best bet.

The Story

However, beneficiaries are liable for deductibles and co-payments when they use Original Medicare. Original Medicare covers hospital stays, services provided by doctors, and outpatient care.

Beneficiaries are expected to pay $389 per day for prolonged hospital stays from days 61 through 90, and $778 for stays longer than 90 days. The Part A deductible is $1,556, and the total amount due for extended hospital stays is $778.

Beneficiaries need to keep in mind that there are “lifetime reserve days.” After the initial 90 days, Medicare will pay for an additional 60 days. When this threshold is reached, beneficiaries are responsible for the remaining costs associated with their hospital stay.

After meeting a threshold of $233, users of Medicare Part B who seek physician assistance, laboratory tests, and X-rays are responsible for paying 20 percent of the total cost.

If an individual does not have any other kind of coverage, a Medigap or Medicare Advantage plan might help to augment the expenditures. Original Medicare does not pay for hearing devices, regular eye care, or regular dental services.

This includes testing needed to use or fit assistive hearing aids, unless a physician comes to conduct a test in an urgent situation or to decide if a patient requires immediate hospital attention, including cases to identify light-headedness or nausea.

Because glasses and corrective lenses are not insured, the same rationale that pertains to eye care emergencies also applies to vision care.

To be insured for dental procedures like fillings and most surgical removals, you will need to buy separate dental insurance coverage.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].