LITTLE KNOWN FACTS ABOUT FEGLI

FEGLI has its fair share of "bright points" but generally speaking price is not among them. For instance if you are a female in modest health, you are most likely paying significantly more with FEGLI than you would with private insurance company plans. The reason is because Females on average live longer than Males, yet with FEGLI they are paying the very same rate as their Male Federal Employee counterparts. private insurance company plans don’t do that.

The same holds true if you are a relatively healthy non-smoker, whether you are a Male or a Female. With FEGLI non-smokers pay the exact same premium rates as their Federal Employee smoker counter parts, thus they are paying significantly more than they should be. private insurance company plans don’t do that, as non-smokers get a significant discount.

If you are in relatively good health, whether you are a Male or a Female, you are probably paying significantly more than you should with FEGLI, because under FEGLI relatively healthy federal employees pay the exact same premium rates as their "not-so-healthy" Federal Employee counterparts. private insurance company plans don’t do that, as non-smokers get a significant premium discount.

You are probably not aware of this, but Your Death Benefit with FEGLI can decrease after age 65 by up to 2% a year, even though your premiums are increasing every five years until age 80. After age 50, those premium increases become very significant and for many federal employees, unaffordable.

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