I am Liran Hirschkorn, from ChooseTerm.com. I want to talk to you today
about life insurance for federal employees. If you are a federal employee,
you have the FEGLI, or Federal Employee Group Life Insurance. Within the
Federal Employee Group Life Insurance, you have a few different options of
coverage that you can get. With the first basic option you can basically
get your base salary plus another $2,000 in life insurance coverage, and
the cost is the same for employees, whether you are 30-years-old or 50-
years-old. If you are an older employee, this is great because you are
paying the same dollar amount for the same coverage as a 30-year-old, which
is really good. If you are younger, the advantage is that up until age 35,
your coverage is doubled, and from age 35 to 45, that extra coverage is
reduced every year by 10%, until you get to 45, where you do not have that
extra coverage. So you do get additional insurance because you are paying
the same amount as a 50-year-old.
With option B in your Federal Employee Group Life Insurance Benefits, you
get to choose a policy that is anywhere from 1 to 5 times your base salary.
Somebody making $50,000 can get $50,000, $100,000, $150,000, $200,000, or
up to $250,000 in coverage, which is really great because it does not
require medical and you can get some life insurance coverage for your
family. The important thing to consider is that as you get older, with
these policies, your costs go up. Every 5 years; 45, 50, 55, 60, 65, you
really see the costs rising with these policies, and if you are generally
healthy, then you can typically go get an individual term life insurance
policy at a much lower cost than what you are paying for your benefits.
At ChooseTerm.com, we have helped many federal employees get benefits at a
cheaper price than what they are paying through FEGLI because their costs
have just gone up and up every single year. Sometimes, we can save people
as much as 50% of what they are paying for the same benefit, and they get
to lock in a rate for term insurance for 10 or 20 years, so they are not
going to have future rate increases for a long period of time. If you are a
federal employee, what I would urge you to do is to take a look at your
benefits, see how much you are paying for life insurance, and compare that
with what an individual policy would cost you. With an individual policy,
you have more control, it is yours, it is not part of a group, and if you
are generally fairly healthy you can typically get a better rate through an
individual policy thank through your Federal Employee Group Life Insurance.
What I would recommend is that you speak with us, let us do some comparison
quotes for you; we work with over 30 different companies, and see if we can
save you money.
You can visit our website, at ChooseTerm.com.
Author: Liran Hirschkorn