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You will become eligible for life insurance via the Federal Employees’ Group Life Insurance program on the first day of employment with the feds. Still, you must provide written notice of refusal before your first pay period ends to be covered.
The basic plan includes two distinct types of FEGLI protection. First, there are Basic offers, no-medical-exam term life insurance for groups. The second is a form of insurance called accidental death and dismemberment (AD&D) that offers double indemnity in the event of an accident.
Aside from one exception, the government and you will each pay half the premium for this set of benefits. The Postal Service has negotiated with the union to cover the total cost of its employees’ Basic health insurance.
Main Life Insurance
One year’s salary is the value of your Basic life insurance policy. From the sum, retirement contributions are withheld. And it’s inflated by an extra $2,000 to the nearest thousand. If your income changes, so will that amount.
The amount of your AD&D coverage will be the same as your Basic coverage if death strikes or you lose two or more appendages, such as a hand, foot, or eye. The compensation would be half as much if only one limb was severed.
As you become older, your AD&D payout decreases. If you are under 35, your AD&D coverage will equal twice your Basic life insurance. Once you reach age 45, the multiplier will equal your Basic insurance amount, having decreased by a tenth for each year above the age of 35.
If you already have Basic and AD&D life insurance, you can add other types of coverage. You must pay the total price for any of these upgrades that you select.
Option A – Standard Insurance
You can purchase an extra $10,000 in life insurance under Plan A. The premiums start relatively low but rise steadily as an employee ages. A higher rate applies to those who are older.
Option B – Extra
Option B allows you to get life insurance for one, two, three, four, or five times your yearly base salary (rounded up to the next $1,000).
Option C – For Family
Option C allows you to include your spouse and qualifying dependent children on the same insurance.
With Choice B, you can choose five times protection for your family, with each multiple amounting to $2,500 for your spouse and $5,000 for each of your children.
Insurance premiums are priced on a per-multiple basis and increase with age. It’s recommendable to get the best insurance for you and your family.
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