FEGLI: Not Just Another Pasta Course
So the next time you find yourself sitting at your computer analyzing the various TSP funds or crunching the numbers on that retirement calculator like a Vegas slot machine (just one more time!), reserve a few minutes to ask yourself: did I really select the best FEGLI option this year? Of course, there’s a lot to consider before that question can be answered.
When looking for more than just the basic FEGLI coverage, it is the impulse of many young Federal Employees to choose Option B, because of its very low upfront cost. However, they often don’t realize how much the expense will climb every five years starting at their 40th birthday. The hit their paycheck takes as a result causes many of them to drop the Option B coverage and be forced to pay significantly higher rates for a new FEGLI option than they would have paid originally. The remaining options outside of FEGLI are certainly not ideal either—forgo the additional (often necessary) coverage altogether, or try to navigate alone through the private market in a tank full of insurance sales sharks.
While Option B does have its place in certain financial planning strategies, such strategies are complex and not often acquired downstairs in your agency’s HR department. Sound, professional advice from someone who is not only an expert on Federal Employee benefits but also well-qualified to provide comprehensive financial planning services is essential to anyone considering a change to their FEGLI plan.
Want to learn more about FEGLI? Download our free resource, The Good, The Bad, And The Fegli