FEGLI (Life Insurance)
If you are a full time employee you have life insurance through the Postal Service, known as Federal Employee Group Life Insurance (FEGLI).
Many employees elect to pay for additional coverage when they are hired on, assume it is a great benefit, and never look at it again. As with every piece of your benefit plan, it is important to understand all the details and use that information to make better decisions.
How your coverage works
The table rates below are based on $250,000 in life insurance coverage.
|Age||Cost||Coverage||Cost per Pay Period|
|Under 35||$0.02 / thousand||$250,000||$5.00 / pay period|
|35 - 39||$0.03 / thousand||$250,000||$7.50 / pay period|
|40 - 44||$0.05 / thousand||$250,000||$12.50 / pay period|
|45 - 49||$0.08 / thousand||$250,000||$20.00 / pay period|
|50 - 54||$0.13 / thousand||$250,000||$32.50 / pay period|
|55 - 59||$0.23 / thousand||$250,000||$57.50 / pay period|
|60 - 64||$0.52 / thousand||$250,000||$130.00 / pay period|
|65 - 69||$0.62 / thousand||$250,000||$155.00 / pay period|
|70 - 74||$1.14 / thousand||$250,000||$285.00 / pay period|
|75 - 79||$1.80 / thousand||$250,000||$450.00 / pay period|
|80 and over||$2.40 / thousand||$250,000||$600.00 / pay period|
Are you one of the many?
Most Postal employees elected to pay for multiples of their base pay on the life insurance. They reviewed the costs and coverage when they were first hired and everything looked good. Unfortunately, the FEGLI program is a moving target and as the employee gets older the price increases. A 30 year old employee might pay $8/pay period for 5x their base pay and see that same coverage increase to $176/pay period before they retire. These kinds of increases have caused employees to lose coverage when they need it most and others have been paying for coverage they don't need.
We can Help
Most employees don't even know what coverage they have because it's been 5-10 or 15 years since the made the decision. Our expertise allows us to analyze the codes on your paycheck and determine what coverage you have and the corresponding cost. Below are some of the areas we cover with employees:
- Amount of Coverage and Cost
- Family Coverage - including how many units of coverage
- Living Benefits Act (Terminal Illness Benefit)
- Cancelling FEGLI coverage if it is not needed
- Reduction in Basic Coverage at retirement or age 65
- Beneficiary Designation
- Filing of Death Claims
- How much life insurance should you keep in retirement?
If you would like more information on how we can help you with decisions surrounding your FEGLI please contact us.