Return to Article: Life Insurance Options, Part Two

By Tammy Flanagan National Institute of Transition Planning September 22, 2006
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    I am a healthy young adult under the age of 35. For me to get $483,000 worth of coverage through FEGLI, i'd be paying $538 a year. I have quotes from 2 other insurance companies for about the same yearly premiums for 30 year terms, for $1 million worth of coverage! I'll be canceling FEGLI and I wish i figured this out sooner!

    kim Posted September 6, 2007 9:45 PM
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    I went to OPM's calculator Web site and was shocked to see that there are more decisions to make than just how much to keep at retirement. There are different variables like no reduction in premiums VS 50 percent or full reduction. Also interesting is the fact that the amounts begin to reduce at age 65 on optional insurance coverage and that it can wind up being all gone by the time you reach 69 years old! For example: Option A-Standard will start declining by 2 percent per month after 65 until it is down to 25 percent. That means $10,000 will only be worth $2,500 by age 68. Everyone should go to this Web site and look at the calculations. Some are shocking!!!

    SKI

    Ken Kobylinski Posted September 22, 2006 7:23 AM

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Life Insurance Options, Part Two
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