Healthy, Senior Federal Employees Should Beware of FEGLI Open Season!
OPM has announced an open season for Federal Employee Group Life Insurance, FEGLI program. Beginning September 1, 2016, eligible federal employees will be able to increase their FEGLI benefits without regard to medical concerns.
FEGLI Option “B” allows federal employees to insure 1-5 times salary. Before exercising this option, healthy employees should consider the following:
- FEGLI Option “B” rates increase 57% at age 50
- FEGLI Option “B” rates increase 82% at age 55
- FEGLI Option “B” rates increase 120% at age 60
- FEGLI Option “B” rates increase 23% at age 65
- FEGLI Option “B” rates increase 78% at age 70
- FEGLI Option “B” rates increase 88% at age 75
- FEGLI Option “B” rates increase 47% at age 80
In light of the recent concerns and uproar regarding huge rate increases of up to 126% for the Federal Long Term Care Insurance Plan, FLTCIP, healthy federal employees should carefully consider these much larger increases under FEGLI Option “B”.
Total 15 year rate increases from the following ages:
- Age 45 – 529% increase over next 15 years
- Age 50 – 392% increase over next 15 years
- Age 55 – 380% increase over next 15 years
- Age 60 – 309% increase over next 15 years
- Age 65 – 389% increase over next 15 years
By shopping for coverage with our top commercial carriers, the guaranteed savings can be unbelievable. One of our clients actually saved $560,000 in premium….really!
Comparing $500,000 20 Year Term with FEGLI Option “B”, a healthy female employee can save the following:
- Age 50 – Guaranteed twenty year savings of $ 67,000 or 81%
- Age 55 – Guaranteed twenty year savings of $115,000 or 83%
- Age 60 – Guaranteed twenty year savings of $203,000 or 83%
- Age 65 – Guaranteed twenty year savings of $311,000 or 81%
For your free FEGLI Option “B” comparison go to AllFeds.com