What is FEGLI Option B?

What is FEGLI Option B?

FEGLI Option B is essentially term insurance – with a guaranteed renewable five year term. This plan in particular can insure you for as much as 1, 2, 3, 4, or even 5 times your Annual Salary rounded up to the nearest $1,000.

What does FEGLI option a cover?

It’s called Option A (Standard Optional Insurance). The federal government has secured group rates for all the insurance provided under the FEGLI program. Option A allows any employee who is covered under Basic Insurance to buy an additional $10,000 of coverage. The premiums for Option A vary by age.

What is additional optional FEGLI Option B?

FEGLI Option B – FEGLI Option B allow the federal employee to purchase as much as five times the amount of the Basic coverage. It can be select in amounts that are 1, 2, 3, 4, or 5 times the amount of the Basic coverage.

What are the different FEGLI options?

There are two types of FEGLI life insurance: Basic and Optional. Optional: There are three types of Optional insurance: Option A-Standard ($10,000 of life insurance), Option B- Additional (you choose from 1 to 5 times your salary), and Option C– Family (coverage on your spouse and eligible dependent children).

What is FEGLI option C?

This option offers family coverage to federal employees covered under FEGLI Basic. Option C provides up to 5 Units, or $5,000 for a spouse, and up to 5 units, or $2,500, for each child. Note: coverage for a child is considered an unmarried dependent under the age of 22.

How do I cancel my FEGLI Option B?

You may reduce or cancel your FEGLI coverage at any time by completing the Life Insurance Election Form, SF 2817, and submitting it to the Retirement and Employee Benefits Branch (REBB) at 31 Center Drive, Bldg 31/Rm 1B37, Bethesda, MD 20892-2215.

What is death benefit B?

Option B (or Option 2) offers an increasing death benefit consisting of the policy’s face amount plus the accumulated cash value. ■ With Option B, the pure insurance protection amount remains the same throughout the life of the policy. The growing cash value is what accounts for the increasing death benefit.

What is Option C of FEGLI?

Option C provides life insurance for your spouse and eligible dependent children. When you elect Option C coverage, all of your eligible family members are automatically covered. Each multiple is equal to $5,000.00 for your spouse, and $2,500.00 for each of your eligible dependent children.

How do I cancel FEGLI option C?

When you no longer have any eligible family members, contact your human resources office to cancel the Option C coverage. The cancellation is effective the end of the pay period in which you no longer had any eligible family members.

Should I get rid of FEGLI?

If you’re 65 or older, retired, and held the coverage for at least 5 years, though, the remaining 25% of coverage stays in place at no cost. If you haven’t caught the no-brainer yet, here it is: No one should irrevocably drop FEGLI-Basic in retirement.

How is FEGLI paid out?

Basic FEGLI The employee (or eligible retiree under age 65) pays two-thirds. The rate is $0.15 per $1,000 of coverage biweekly while you are employed. The death benefit is determined by your basic salary rate rounded to the next highest $1,000, plus an additional $2,000.

What are my FEGLI options?

There are four parts to FEGLI: Basic Coverage, Option A, Option B , and Option C . As an eligible employee, you are automatically enrolled in Basic insurance unless you waive this coverage. Basic insurance covers your life for whichever is greater: 1) Your annual rate of basic pay, rounded up to the next even $1,000, plus $2,000; or 2) $10,000.

Do you need to compare FEGLI with other insurance policies?

When comparing FEGLI with other insurance provides, you should also keep in mind that FEGLI gives you benefits like accidental death & dismemberment. As you compare your FEGLI you should keep in mind that the coverage plan you are choosing over FEGLI should also give you similar advantages, if they are warranted for your individual circumstance.

How much is basic FEGLI?

There are a number of different coverage options under FEGLI. FEGLI Basic Life – An amount equal to the employee’s annual salary rounded up to the next $1,000, plus $2,000. FEGLI Option A – Standard $10,000 coverage for the employee. FEGLI Option B – 1, 2, 3, 4, or 5 times multiples of the employee’s annual salary.

What is Option B life insurance?

Option B Advantages. The primary advantage of universal life insurance option B is that cash values grow more quickly over time and the higher level of excess premium contributions allowed by the IRS. The cash values accumulate more quickly because of the higher initial premiums and lower initial death benefit.