Page 50 - The Informed Fed--Hearn Wealth Management
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available in the private sector, a healthy 40-year-old male will pay $250
                        in  annual  premiums  for  $250,000  of coverage  and  that  price  will  be

                        locked in for 20 years. Under FEGLI rates, to get that same $250,000, a
                        40-year-old employee will pay $390 in annual premiums for 5 years, $585
                        each year for the next 5 years, $910 per year between the ages of 50 and

                        54, and a whopping $1,820 each year from 55 to 59 years of age. At age
                        60, under the current FEGLI rates, that amount will more than double.

                        Currently, in the private market, a healthy 50-year-old male can lock in
                        rates for 20 years on $250,000 for annual premiums of around $625. As
                        a  general  rule,  if you  are healthy,  you are  better off  getting your  life

                        insurance  with  a  private  company  and  protecting  yourself  from  the
                        increases the federal program allows. If you are unable to obtain approval
                        from a  private  company,  keeping  the  federal  life  insurance  until  you

                        cannot afford the price may be your best option.
                            Very few people in the federal government understand the details of
                        their  life insurance  program. The cost of not understanding  how the

                        program works can cost the employee thousands of dollars in premiums
                                                                                       t learned. If you

                        just  figured  out  that  you  may  be  paying  too  much  for  your  federal
                        insurance, check and see what a private company could do for you in
                        terms of a replacement policy.

                            OPTION  C:  This  is  your  Family  Coverage  provision  and  is  an
                        optional coverage you elect to pay when hired on with the government.

                        Family Coverage is life insurance on your family where you will be the
                        beneficiary  should  one  of  your  family  members  pass  away.  Family
                        Coverage is offered in units. An employee can take 1-5 units of Family
                        Coverage. Each unit represents $5,000 on your spouse and $2,500 on

                        each  dependent  child.  Dependent  children  are  defined  as  unmarried
                        children under the age of 22, and unmarried foster and adopted children

                        living with you in a parent-child relationshi
                        look at an example of an employee who took 5 units of Family Coverage.
                        With 5 units, the spouse will be covered for $25,000 and each dependent




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