Life Insurance FEGLI

 

FEGLI Basic Life- Is True Term Insurance

 

Basic life is determined by a formula which is based on your current annual wage.
While we are working, Basic Life is provided free of charge by the Postal Service.
After retirement, it may be continued for a nominal fee.
Once you reach age 65, the Basic Life once again is provided free of charge, but it reduces in coverage by 2% per month until it reaches 25% of the original coverage.

 

Availability:
    All Career USPS Employees paid for by USPS until you Retire.
    All other Federal Employees pay for this benefit.

 

How to figure Basic Coverage:
    $54,600.00 Base Pay
    $55,000.00 (rounded to next higher thousand)
    Add $2,000.00
    Your Basic Amount is…S57,000.00

 

Extra Benefits to Basic “No Cost Benefits”

 

Your basic coverage has an additional bonus feature called the Extra Benefit if you are age 45 and under.
Employees under age 45 will get a multiple of their Basic Coverage depending on their age.

 

Example:
    John is 34 years old
    $55,000 base times 2 = $110,000.00
    This is Basic and Extra Benefit

 

Example:
    John is 45 years old
    $55,000 base times 1 = $55,000.00

 

Extra Benefits Table

Age 35…2.0 39…1.6 43…1.2
36…1.9 40…1.5 44…1.1
37…1.8 41…1.4 45…1.0
38…1.7 42…1.3

 

Accidental Death or Dismemberment

 

Basic Life Insurance also includes Accidental Death and Dismemberment coverage for employees (not for retirees).
Accidental death benefits under Basic are equal to the amount of Basic Insurance, without the Extra Benefit.
Accidental death benefits are also available with Option A coverage, providing an additional $10,000 of coverage.
Accidental death benefits are paid in addition to any other payable FEGLI coverage.

 

Accidental Death and Dismemberment (AD & D)”No Cost Benefit”

 

Applies to Basic Life and Option A

 

Accidental Death
    Pays Double

 

Dismemberment Benefit 
    Lose Two or More of the following:
        Hand, Foot, or Sight (one eye)
            100% Paid While Alive
    Lose of One the following:
        Hand, Foot, or Sight in one eye
            50% Paid While Alive

 

Living Benefits Act 1995
No Cost Benefit part of Basic Life

 

The Living Benefits was passed in 1995. If you are diagnosed with a Terminal Illness and physicians document that you have less than 9 months to live you can access your Full Basic Benefit and any applicable Extra Benefit AT THE TIME YOU SUBMIT DOCUMENTATION OF YOUR CONDITION. 

 

In other words , if you are terminally ill you can collect over $50,000.00 or more before you pass away.

 

FEGLI Basic Living Benefit

 

Employees or annuitants may elect to receive a full lump-sum payment (Living Benefit), or partial (in $1000 increments) payments (Partial Living Benefit) – if they are terminally ill and have a documented medical prognosis that their life expectancy is 9 months or less.

 

A Living Benefit is equal to the Basic Life insurance amount, plus any extra benefit for persons under age 45, that would be in effect nine months after the date of the Office of Federal Employees’ Group Life Insurance (OFEGLI) receives a completed claim for Living Benefits form.

 

The form you need to file is FE-8. The form must be requested directly from OFEGLI Office.

 

Option A   sean bullet these

 

$10,000.00 Level Term Insurance Benefit

 

Burial Policy is what most people call it

 

Remains level to age 65
    Premiums Stop (no more payments)
    Level Decreases by 2% a year until it bottoms out at 25% or $2,500.00 and it is paid up
    This coverage is not expensive and it increases in cost every 5 years starting age 35

 

Remember this has AD & D Benefit

 

Option B

 

This is a great benefit when young most people drop it at age 55 to expensive to keep.

 

The Most Popular of Coverage for Postal Employees
    You allowed to elect from one to five times annual wage
    When you are young this is inexpensive until you approach age 50
    Rates start increasing at age 35 and go up every 5 years

 

If you have an major health issues you may need to keep this coverage since no exams were needed to get this coverage when hired in

 

Option C – Family Coverage

 

If your children are 25 years old they aren’t covered you have to drop this yourself. I meet a lot of people that are paying for this benefit and no is covered because they have aged out of the plan.

 

Spouse Units are $5,000.00
    Max 5 units or max $25,000.00

 

Children Units are $2,500.00
    Max 5 units or max of $12,500 .00 children covered until age 22
    If dependent of employee, either living at home or going to school or college
    If they incapable of self-support because of mental or physical disability which existed prior to age 22 child will still be covered

 

Eligible family members include spouse and unmarried dependent children including adopted children and step children.

 

This is what is normally done. However, most employees drop option B as they find it too expensive.

 

75% Reduction of Basic Life Insurance

 

Stop Paying at age 65 approx 24.00 Per month

 

Basic and Option A starts at $67,000.00 and reduces to $16,750.00

 

Option B and C Reduces by 2% a month for 50 months down to Zero