Page 48 - The Informed Fed--Hearn Wealth Management

Extra Benefit at the time of diagnosis. This coverage allows ill employees
to receive their benefits while they are living. This valuable coverage can

allow employees to spend their final days with family and spare their
loved ones the financial concerns that often accompany a terminal
illness. Unfortunately, this coverage is very rarely used because most

employees are unaware of this option. Please make your loved ones
aware of this valuable coverage and if you have coworkers who could

use this coverage, bring it to their attention.

Options A, B and C each add a different benefit to the FEGLI
package. Employees can choose to add these when they are hired. These

benefits may be reduced or canceled at any time but can only be added
or increased during an open season which OPM occasionally offers, or
following a qualifying event such as marriage, divorce or birth of a child.

OPTION A: This coverage is something you elected to pay for
when you were hired. Option A is a very straightforward coverage under

your FEGLI. It provides a $10,000 death benefit to beneficiaries in the

does increase every 5 years, but because the overage is so small, the cost

is usually not an issue. Some employees refer to this coverage as a very
affordable burial policy.

OPTION B: This life insurance option is very popular among
federal employees. This option allows employees to take anywhere from
1 all the way up to 5 times their base pay in additional life insurance if
they choose to pay for it. In most cases, this decision is made when the

employee is hired. A simple example would be if Bob has a $50,000 base
salary and he took 5x Option B he would have an additional $250,000 of

life insurance coverage. The cost of this coverage is based upon your age.
The government devised the plan and pricing.

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