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FEGLI Option B

FEGLI Option B

With this option, once an employee reaches retirement he/she can decide whether or not to keep OR reduce coverage.  FEGLI Option B offers 1, 2, 3, 4, 5 X salary rounded up to the next thousand. 

Note:  Federal Employee Benefits has a special program which doesn’t require a physical exam.  Individuals may still qualify for up to $250,000 coverage.  ontact us for more details.
 

Example: 5X Salary while employed W/O COLA increases.

Salary: $81,500 (round up to nearest thousand) = 82,000

Age 35-39 ($82,000 X 5) = $410,000 X $.00004 = $16.40 Biweekly or $35.53 Monthly
Age 40-44 ($82,000 X 5) =$410,000 X $.00006 = $24.6 0Biweekly or $53.30 Monthly
Age 45-49 ($82,000 X 5) = $410,000 X $.00009 = $36.90 Biweekly or $79.95 Monthly
Age 50-54 ($82,000 X 5) = $410,000 X $.00014 = $57.40 Biweekly or $124.36 Monthly
Age 55-59 ($82,000 X 5) = $410,000 X $.00028 = $114.8 Biweekly or $248.73 Monthly
Age 60-64 ($82,000 X 5) = $410,000 X $.00060 = $246.00 Biweekly or $533.00 Monthly
Age 65-69 ($82,000 X 5) = $410,000 X $.00072 = $295.20 Biweekly or $639.60 Monthly
Age 70-74 ($82,000 X 5) = $410,000 X $.00120 = $492.00 Biweekly or $1,066.00 Monthly
Age 75-79 ($82,000 X 5) = $410,000 X $.00180 = $738.00 Biweekly or $1,599.00 Monthly
Age 80+    ($82,000 X 5) = $410,000 X $.00240 = $984.00 Biweekly or $2,132 Monthly

*note:  if the employee chooses to keep current coverage level at retirement, premiums will increase every 5 years as shown in the table above. You are encouraged to shop for life insurance outside before the costs get too expensive.

 

Individuals opting for the reduction phase at retirement should know:

  • premium may increase every 5 years until age 65, at which time the premium will be discontinued
  • coverage begins to decrease by a rate of 2% per month until no coverage is left

 

For more information on FEGLI, click on the links listed below:

 Basic FEGLIOption AOption BOption C
 

Contact us for your Personalized Retirement Report.