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Do Not Wait For Open Season To Find A Less Expensive FEGLI Solution
Frequently Asked Questions
Q: What is FEGLI?
A: FEGLI stands for Federal Employee's Group Life Insurance.
Q: What does "Open Season" mean?
A: "Open Season" is the period allowing you to change your benefits such as: increasing benefits, decreasing benefits or adding family members.
Q: Do I have to wait for "Open Season" to replace or cancel my FEGLI benefits?
A: NO! You can replace or cancel your FEGLI benefits at any time during the year. YOU DO NOT HAVE TO WAIT FOR "OPEN SEASON" TO CANCEL!
Q: Is FEGLI Expensive?
A: Yes! The comptroller General of the United States reported on April 7, 1986, that private sector insurance programs typically provide greater coverage at much less cost to the employees than FEGLI program.
Q: Is FEGLI Inferior?
A: YES! The Government Accounting Office reported in April of 1986 that the FEGLI program is inferior to many private plans
Q: Is FEGLI financially backed by the Federal Government?
A: NO! A large group of private insurance companies underwrites the group policy.
Q: Do Federal employees receive a discount on FEGLI coverage?
A: NO!
Q: Who pays for optional FEGLI coverage?
A: Postal and most other Federal employees pay the full cost of the additional optional insurance.
Q: Who pays for basic FEGLI coverage?
A: If you are a non-postal Federal employee, the cost of the basic insurance is shared by you as the employee and the Federal Government as the employer. If you are a postal employee, the U.S. Postal Service contributes 100% of the basic life insurance cost.
Q: Does FEGLI Basic Life Insurance decrease over time?
A: YES it can! You have 3 options to chose from at retirement. FEGLI Basic Life insurance #1, reduces2% per month after the insured reaches age 65 to 25% of the original amount, #2, reduces to 50% of the basic amount and you pay a premium for the rest of your life, #3, NO REDUCTION and you pay a higher premium for the rest of your life.
Q: If I change employers, can I retain my FEGLI coverage?
A: NO! Not in its current form.
Q: What is the FEGLI Solution?
A: The FEGLI Solution is a private life insurance program designed to meet Federal employee's needs. It can cost less and give you coverage past age 65 and since you own your policy you can take it with you anywhere! You can even insure your spouse and children if you wish!
Q: How does the FEGLI Solution program work?
A: A representative provides you with an analysis of your FEGLI benefits and will review solutions tailored to saving you $$$ at NO OBLIGATION to YOU!
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