What Factors Can Alter FEGLI rates?
The Increasing FEGLI Rates
What is FEGLI?
FEGLI or Federal Employees Group life Insurance is the biggest group term insurance program in the world. All federal employees are eligible for this guaranteed federal benefit, which comes with various coverage plans and FEGLI Options.
Are you worried that the increasing FEGLI rates will take toll on you in the long run? Keep reading to find out what factors are associated with the increasing FEGLI rates over time.
FEGLI Advantages
Although there are multiple advantages of obtaining FEGLI, several factors may affect the overall FEGLI rates and costs. The challenges are somewhat greater for individuals older than the age of 50.
Are you thinking whether the federal employees group life insurance options are enough for you or should you invest in an individual life policy? The following points will help you make the right choice. Take a look:
Factors that Can Alter FEGLI Rates
Before you decide whether or not to cancel the life insurance, go through these factors that can alter FEGLI rates considerably. Take a look:
Federal Employee Age
After you cross the age of 35, your FEGLI premium is going to increase after every five years. On the other hand, individual life insurance premiums basically remain on a balanced level.
Retirement
Individual life insurance plans are not affected by retirement etc which instantly gives them an edge over FEGLI.
Health
FEGLI is a group term life insurance, which means it holds a drawback for those who are healthy yet are grouped with people facing medical issues. The premium for life insurance is higher for those with health problems, and as healthy participants are grouped with them, you end up paying more though you are perfectly well. These cost ‘penalties’ increase if you are above the age of 50.
Limited Premium
The most affordable and cost effective choice when it comes to this federal employees retirement system is the basic federal employee life insurance coverage – which is limited to just $2000 over your basic annual pay. If your requirements are more than that and you have greater number of dependents, you need to go for FEGLI Option B and sometimes FEGLI Option C of the FEGLI coverage – and the costs of these additional insurance plans will be added to your premium and increase the overall FEGLI rates.
The bottom line is this – If you are healthy, over the age of 50 and are looking for an affordable and feasible life insurance plan to support you through retirement, it is best to compare your life insurance plans beforehand and get help from an experienced, local FEGLI expert.
For more information about FEGLI rates and learn how you can save by using a FEGLI calculator to compare your options side by side, please visit Comparefegli.com