FEGLI Life Insurance Options

If you are turning 50 or are retiring soon, there may be some options to consider for your FEGLI Life Insurance.

I am sure those that are reading this article are very aware of FEGLI and how the system works. This article will specifically address those that are:

Age 50+
Those that are considering retirement
Those that may consider themselves Under Insured.  

As you are aware when you reach 50 , every Five years, the premiums will increase. If you are taking the Full Opition B with 5X your salary you will see , in the example below, that your premiums can get quite expensive.

I will use a healthy 50 year old male, California resident , with a salary of $100K with the 5X option. His Term Life Insurance face value  will be $602K. This is his base amount of $102K ($33.15 per month) + $500K for a total amount of $602K

Age Range                                    Monthly Premium

50-54                                            $141.00 + $33.15 =$174.15
55 – 59                                          $249 + $33.15 =$282.145
60-64                                           $563.50 +$33.15 = $596.65
65- 69                                          $671.50 +$33.15 = $704.15

I will stop at a potential retirement age of 70. As you can see there is a dramatic increase in premiums. Run your own results with the FEGLI calculator.

Stand Alone Term Life Insurance

Now lets take the same  59 year old person above and run a stand alone Term Life Insurance Quote with the following criteria:

2o year term (Will cover him to age 70).  I am taking the applicant down to Standard class. This allows for some minor health problems such as: Weight, Elevated Blood Pressure, Elevated Cholesterol etc.

SBLI came back with the best results at $154.51 per month. This is Level Term for $20 years. You can see the savings!

Very rarely are Two situations the same.

I understand everyone’s situation is different:

You may not need as much Life Insurance as you did when you were younger?
Maybe you have a major health problem and now company would insure you?
Maybe you are under insured?

Contact me today for a free no hassle , no obligation quote. Let’s look over your options. My number is 512-963-5000 or fill out my contact form: