Page 47 - The Informed Fed--Hearn Wealth Management

age of 45 will get a multiple of their Basic Coverage depending on their
age. The ages and the applicable multiples are listed below:

<35 = 2.0 36 = 1.9 37 = 1.8
38 = 1.7 39 = 1.6 40 = 1.5
41 = 1.4 42 = 1.3 43 = 1.2

44 = 1.1 45 = 0.0

from

calculated by taking his Basic Pay and multiplying that amount by the
Extra Benefit Factor of 1.6 from our previous chart: Basic Life Coverage:
$48,000 Extra Benefit Factor: x 1.6 Total Basic & Extra Benefit: $76,800.

will be reduced to 1.5 and continue to reduce as he gets older until he
turns 45 and will have no Extra Benefit. The current insurance company

who has the life insurance contract through the government is willing to
give you this additional Extra Benefit at no cost because you are younger

and less likely to pass away. For all federal employees, the Cost of Basic
Coverage is $0.15 per thousand dollars of coverage. An employee with
$50,000 of Basic Coverage would pay $7.50 a pay period for that

insurance. Remember, Extra Benefit insurance is at no additional cost.

The next area of your FEGLI coverage is the Living Benefits Act.
Very few federal employees are aware of this part of their benefits, but it

is a critical subject and worth covering. The Living Benefits Act was
passed in 1995. It was intended to benefit employees diagnosed with

terminal illnesses. Under the Living Benefits Act, if an employee is
diagnosed with a terminal illness and has 9 months or fewer to live, the
employee can access his or her full Basic Coverage plus any applicable

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