FEGLI’s Advantages and Disadvantages for Federal Employees

Since they’re automatically enlisted in the basic package as quickly as they start work, several federal workers believe that the Federal Employees’ Group Life Insurance (FEGLI) is the right package that they should opt into.

Some opt for one of the three extra coverage choices (A, B, or C). But then, how can federal workers ensure they receive the most cost-effective package with the fairest coverage? Have they considered all the advantages and disadvantages of the packages they opt for? Are they informed that other options may prove better than what they initially imagined with their first choice?

The checklist below of Federal Employees’ Group Life Insurance (FEGLI) advantages and disadvantages will help ensure that federal workers understand the program’s disadvantages and advantages. This should assist federal workers in determining if FEGLI is the appropriate package for members of their families.

Advantages of FEGLI

• Convenience — Irrespective of whatever your health or age status reads, you are instantly enlisted in the basic plan. You won’t have to undergo any health tests, and so far as you work for the federal government and remit your premiums, you’ll be covered. There is no point in paying because your premiums are automatically withdrawn from y the funds in your paycheck.

• Ability to adjust coverage sum â€” The base package covers your income and two thousand dollars, approximated to the closest thousand. But then, it is possible to opt to increase your coverage. Choice A increases the coverage by ten thousand dollars, while Choice B lets you pick even more than was initially possible.

• Family coverage — Aside from yourself, Choice C lets you insure your spouse and children. The other packages offer you individual insurance for each family member.

Disadvantages of FEGLI

• Price — The extra coverage comes at a cost. Choice A, B, and C are premiums added to the basic package and grow as you become senior. Because the coverage premiums for your kids and spouse are calculated based on your current age rather than your family member’s ages, these expenses will rise as you age. You will pay an additional premium if you want to include Accidental Death and Dismemberment Insurance.

• Coverage could be limited â€” You would only be qualified for coverage if you’re working for the government or resigned from that employment peradventure. You didn’t retain your Federal Employees’ Group Life Insurance (FEGLI) coverage if you opt to quit your work or are fired.

• Limited alternatives — FEGLI provides a few other options, but none are Universal Life Insurance, Single Premium Whole Life, or Whole Life Insurance. These insurance have features and advantages that Federal Employees’ Group Life Insurance’s packages do not.

Contact Information:
Email: [email protected]
Phone: 7242723902

Bio:
Craig E. Vukich is a 35 year retirement specialist and Financial Advisor who has helped thousands of clients all over the country with their investment portfolios and retirement strategies.
In that time, Craig has also helped seniors and retirees with their Medicare options as healthcare continues to be one of the most confusing issues facing people today.
Personally, Craig lives in Beaver Falls, Pa with his beautiful wife and childhood sweetheart Barb and their lovely daughter Shalyn.
Craig is a graduate of Westminster College which is about an hour north of Pittsburgh. Craig is a recreational golfer and traveler and Pittsburgh sports fanatic.

Disclosure:
This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.