If you retire with basic life insurance and select 75 % reduction. It will keep its value until you reach age 65. Then slowly reduce until it reaches 25% of its value. At 65 you no longer will be charged in retirement. So if your salary at retirement is 100k. It will slowly reduce to 25k. Which should be enough to pay your funeral expenses.
I pre-paid all funeral expenses for my husband and I. Didn’t want my kids to have to make decisions as that time is already stressful enough. Best thing we ever did.
Between 50 and 55 , I was paying approximately 100 per pay period. FEGLI at 55 on option b x5 is brutal expensive. My advice is get private insurance early. I had health issues at 37 that made me a high risk. So I was stuck with FEGLI until I could self insure.
Thanks for the video. I haven’t looked at mine in years. I’m 59 and all my children are grown. I guess I should get rid of the family part since I’m single.
Thank you! I never paid attention to that charge on my husband's LES. With his age and health, he won't beat the price he is paying. We'll pay better attention.
I dropped my FEGLI and signed up for private insurance. The private insurance premium is a tad lower than FEGLI, the reason for my switch is because the private insurance coverage is 2.5x the FEGLI coverage and my private insurance stays leveled.
I was paying for x 5 of my salary but after my dependents were grown I cancelled my policies as it gets costly. I took the copay and added it to my tsp savings as that can pay for my funeral costs.
Good reminder for me to check. It isn't the most expensive, but it isn't insignificant either, esp. when we get into our 50's. I got the house paid and no debts (besides the normal taxes/insurance) and doing decent on the TSP. So I might keep the multiplier till I'm 60...I see there is some type of 75% thing with the basic that I don't quite understand, but will look into as I near retirement (in about a decade).
Thank goodness am a veteran and me and my spouse funeral services are covered by a nearby national cemetery. The veteran affairs has a funeral program. Not knowing this we set aside 20k I savings bonds which grows for thirty years for funeral services. As a set it and forget fund. No insurance company can cancel or refuse payments. We also plan on withdrawing another 10k from retirement savings. We figured 15k each should be plenty. If not the surviving spouse can address whatever needed with other assets. These funds are separated from our emergency funds.
@@PlanYourFederalBenefits we brought savings bonds with each federal tax return and some outside of taxes. The bonds purchase outside of tax returns became what if funding as a secondary emergency fund.
@@chinitawilliams8605- do you have people dependent on your income? You may not need life insurance at all. I ask because at age 56, our kids are often grown up.
Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
I'd retiring or working less in 4 years, and considering this financial recession, I'm deciding to begin taking up skilled trades. I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $180K per year but nothing to show for it yet.
Great question. We would love to be able to sit down with you through a zoom call and help answer this question. Feel free to schedule a meeting with us here: app.hawsfederaladvisors.com/whatservicemakessense
I'm in the 55-59 age bracket so my FEGLI premiums are quite substantial. Have been buying the higher Option B amounts because I have 2 grade school kids, a large mortgage, and a spouse who only works part time. Since I have 30+ years of TSP accumulation (100% traditional), would it viable to eliminate or reduce Option B and have my beneficiaries rely on the TSP death benefits for the bulk of their income if I pass away prior to retirement? I imagine that one downside to any future TSP withdrawals by my beneficiaries would be the taxation, while the FEGLI pay out wouldn't be taxed (I think). Would shopping for cheaper private life insurance make any economic sense? Thanks for the great video.
Drop Part B and get a 20 year term policy. I did it at 52 an got a 1 million dollar policy for less than half what I was paying for Part B with more coverage. Keep Part A and when you retire take the 75% reduction; will be free after age 65 and will always pay at least 25% of your last years salary.
Great question! This is a very specific question that has to deal with so many factors. I have many other videos about FEGLI or you could schedule a one-on-one meeting with us to provide specific advice for you. FEGLI Content: hawsfederaladvisors.com/fegli-articles/ Schedule Meeting: hawsfederaladvisors.com/work-with-us/
Am looking for private life insurance to replacke FEGLI any advice on three life insurance company I should look into for quotes? Thank you! Im in pretty good health.
You can lower your coverage any time. To increase coverage would require a Qualifying Life Event or an Open Season. FEGLI Open Seasons are rare. I've seen only a handful in 30+ years.
There are many options and ways to get a better deal. Here is more content that discusses other options that you may have: ruclips.net/video/Ru9izPkIiwU/видео.html&ab_channel=HawsFederalAdvisors
Great question. If is possible to get FEGLI for free in retirement. Here's a great video about it: ruclips.net/video/7r4WflNL9C4/видео.html&ab_channel=HawsFederalAdvisors
I've been seeing things about a $2,600 monthly payment from SS 2021 Act(?) passed by Presuden Biden. Is this true and if so, when do we start getting? If yes, is it automatic or do we apply?
If you retire with basic life insurance and select 75 % reduction. It will keep its value until you reach age 65. Then slowly reduce until it reaches 25% of its value. At 65 you no longer will be charged in retirement. So if your salary at retirement is 100k. It will slowly reduce to 25k. Which should be enough to pay your funeral expenses.
Thanks for sharing!
I pre-paid all funeral expenses for my husband and I. Didn’t want my kids to have to make decisions as that time is already stressful enough. Best thing we ever did.
Great to hear!
Between 50 and 55 , I was paying approximately 100 per pay period. FEGLI at 55 on option b x5 is brutal expensive. My advice is get private insurance early. I had health issues at 37 that made me a high risk. So I was stuck with FEGLI until I could self insure.
Thanks for the video. I haven’t looked at mine in years. I’m 59 and all my children are grown. I guess I should get rid of the family part since I’m single.
Same here. We have FEGLI and another outside insurance. We are financially set and I realized we don't need all this LOL. Getting rid of it.
Thank you! I never paid attention to that charge on my husband's LES. With his age and health, he won't beat the price he is paying. We'll pay better attention.
Thank you for your reply and feedback!
I just subscribed to your channel. I learned a lot after watching several videos. Thank you!
The prob is the older you get, its harder to get better pricing even outside -private companies
I dropped my FEGLI and signed up for private insurance. The private insurance premium is a tad lower than FEGLI, the reason for my switch is because the private insurance coverage is 2.5x the FEGLI coverage and my private insurance stays leveled.
Shop around for life insurance once you hit 55. Fegli gets very expensive since the insure everyone in federal service without any underwriting.
Thanks for sharing!
I agree the prices get ridiculous as you age. If you are young, shop around!
I was paying for x 5 of my salary but after my dependents were grown I cancelled my policies as it gets costly. I took the copay and added it to my tsp savings as that can pay for my funeral costs.
This was very informative and helpful. Thank you!
Good reminder for me to check. It isn't the most expensive, but it isn't insignificant either, esp. when we get into our 50's. I got the house paid and no debts (besides the normal taxes/insurance) and doing decent on the TSP. So I might keep the multiplier till I'm 60...I see there is some type of 75% thing with the basic that I don't quite understand, but will look into as I near retirement (in about a decade).
Here's more content about FEGLI if you find it useful:
hawsfederaladvisors.com/fegli-articles/
Thank goodness am a veteran and me and my spouse funeral services are covered by a nearby national cemetery. The veteran affairs has a funeral program. Not knowing this we set aside 20k I savings bonds which grows for thirty years for funeral services. As a set it and forget fund. No insurance company can cancel or refuse payments. We also plan on withdrawing another 10k from retirement savings. We figured 15k each should be plenty. If not the surviving spouse can address whatever needed with other assets. These funds are separated from our emergency funds.
Sounds like you've put a lot of thought into your finances. Thanks for sharing!
@@PlanYourFederalBenefits we brought savings bonds with each federal tax return and some outside of taxes. The bonds purchase outside of tax returns became what if funding as a secondary emergency fund.
Thank you for your video.
You are welcome
Very helpful. I will emphasize that most of us Feds will get more coverage more cheaply if we shop outside of FEGLI.
Glad it was helpful!
Can you recommend some?? Retirement within 1yr at 57 & 31yrs. Some health problems. Thanks
@@chinitawilliams8605- do you have people dependent on your income? You may not need life insurance at all. I ask because at age 56, our kids are often grown up.
@@bucklaughlin906 I do have a 16yr old . So the answer is yes.
Another great topic
Thanks again!
Thank you very much. I really love your video, but can you help me figure out?Fifty seven years old, with twenty five years in service
Thank you. And we would love to help. Feel free to schedule a meeting with us here: app.hawsfederaladvisors.com/whatservicemakessense
Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
Thank you for your comment!
I'd retiring or working less in 4 years, and considering this financial recession, I'm deciding to begin taking up skilled trades. I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $180K per year but nothing to show for it yet.
Excuse me I thought basic was free! I don't see anything on my pay stubs about it
Great question. We would love to be able to sit down with you through a zoom call and help answer this question. Feel free to schedule a meeting with us here: app.hawsfederaladvisors.com/whatservicemakessense
I'm in the 55-59 age bracket so my FEGLI premiums are quite substantial. Have been buying the higher Option B amounts because I have 2 grade school kids, a large mortgage, and a spouse who only works part time. Since I have 30+ years of TSP accumulation (100% traditional), would it viable to eliminate or reduce Option B and have my beneficiaries rely on the TSP death benefits for the bulk of their income if I pass away prior to retirement? I imagine that one downside to any future TSP withdrawals by my beneficiaries would be the taxation, while the FEGLI pay out wouldn't be taxed (I think). Would shopping for cheaper private life insurance make any economic sense?
Thanks for the great video.
Drop Part B and get a 20 year term policy. I did it at 52 an got a 1 million dollar policy for less than half what I was paying for Part B with more coverage. Keep Part A and when you retire take the 75% reduction; will be free after age 65 and will always pay at least 25% of your last years salary.
Great question! This is a very specific question that has to deal with so many factors. I have many other videos about FEGLI or you could schedule a one-on-one meeting with us to provide specific advice for you.
FEGLI Content: hawsfederaladvisors.com/fegli-articles/
Schedule Meeting: hawsfederaladvisors.com/work-with-us/
Can I ask who you went with for coverage outside? @@celticmco5672
Am looking for private life insurance to replacke FEGLI any advice on three life insurance company I should look into for quotes? Thank you! Im in pretty good health.
Also once I find a new life insurance policy do I have to wait until the end if the year to cancel it?
Great question. You should be able to cancel it anytime.
How do I drop it? Open season?
Yes
You can lower your coverage any time. To increase coverage would require a Qualifying Life Event or an Open Season. FEGLI Open Seasons are rare. I've seen only a handful in 30+ years.
How to cancel or decrease FEGLI?
Probably through LiteBlue.
There are many options and ways to get a better deal. Here is more content that discusses other options that you may have:
ruclips.net/video/Ru9izPkIiwU/видео.html&ab_channel=HawsFederalAdvisors
After you retire , will you still be charged for fegli?
Great question. If is possible to get FEGLI for free in retirement. Here's a great video about it:
ruclips.net/video/7r4WflNL9C4/видео.html&ab_channel=HawsFederalAdvisors
Can we cancel before we retire? Thanks for the info 😊
Yes.
www.opm.gov/frequently-asked-questions/insure-faq/life/how-do-i-reduce-or-cancel-fegli-life-insurance/
Thanks for sharing this!
You can cancel anytime but keep in mind FEGLI open season only come around every 10 years or so and with little warning if you want to get back in.
@@celticmco5672 OK good to know thanks!
I tried to reduce my policy, but l was told I had to wait till open season
sounds like someone on your end or the distant end is confusing health insurance with life insurance.
I've been seeing things about a $2,600 monthly payment from SS 2021 Act(?) passed by Presuden Biden. Is this true and if so, when do we start getting? If yes, is it automatic or do we apply?
A Lefty 😋