2. Free for Postal Employees
Annual basic pay rounded up to the next thousand
plus $2,000. Example (59,800 base pay rounded up 60,000
plus $2,000=$62,000 Basic life)
Reduces 2% a month at age 65 or retirement (if
later)with an ultimate reduction of 75%.
Can elect to pay for a 50% or no reduction.
3. $10,000 Coverage
Low Cost
Reduces at age 65 or retirement(if later) to $2500 2% a month.
4. Multiples of base pay 1 to 5 times
Group term
Premium increase after age 35 every 5 years
Premiums double between ages 50 and 55 again at 60
No cash value
Reduction at retirement over 50 mo. until 0
5. What you don’t know about FEGLI?
1. The Cost of FEGLI increases every 5 years until the age of 80. It Builds NO CASH Value or
Paid Up Extended Insurance.
2. Most people by that time are having to live on a retirement check and end up dropping the
coverage.
3. The most unfortunate aspect of this situation is this; if the employee was hired at age 45 they
would have given the government over $36,000 in premiums through out their career, and when
they drop the coverage in later years, they have nothing to show.
Here's an Example:
45 yrs. old Employee
Based on $50,000/yrs.
Option "B" : 5 X salary
FEGLI:
Premium
Cost Bi-w eekly
adjustment
$22.50*26 (pay periods) 5 yrs.
$35.00*26
5 yrs.
$70.00*26
5 yrs.
$150.00*26
5 yrs.
Age Group
45-49
50-54
55-59
60-64
Spend
$2,925
$4,550
$9,100
$19,500
Total FEGLI Cost to Employee
20 year term life
Cost per
month
$40.94
$36,075
Cost per year
$491.28
Total over 20 years
T OT AL SAVINGS HAVING A T ERM LIFE POLICY
$9,825.60
$26,249.40
SOLUTION: The Combination of Term Life Insurance and a Secured Advantage/Asset shield plan
or an IUL will provide coverage and will allow the employee to accumulate cash value that can end
up supplementing retirement if they do not use the death benefit.
6. PROJECTED B & C COSTS
OPTION B COVERAGE
$280,000
CURRENT AGE:
50
AGE AT RETIREMENT:
62
YEARS UNTIL RETIREMENT:
12
OPTION B OPTION C OPTION A TOTAL
OPTION B RATES: BY AGE GROUP BI-WKLY BI-WKLY BI-WKLY BI-WKLY
34
$5.60
$1.10 $0.30 $7.00
35-39
$8.40
$1.45 $0.40 $10.25
40-44
$14.00
$2.10 $0.60 $16.70
45-49
$22.40
$3.15 $0.90 $26.45
50-54
$36.40
$4.70 $1.40 $42.50
55-59
$64.40
$7.60 $2.70 $74.70
60-64
$145.60
$13.50 $6.00 $165.10
65-69
$173.60
$15.70 $6.00 $195.30
70-74
$319.20
$18.00 $6.00 $343.20
75-79
$504.00
$24.00 $6.00 $534.00
80 & Over
$672.00
$33.00 $6.00 $711.00
ANNUAL Yrs/Bracket TOTALS
$182.00
0
$0
$266.50
0
$0
$434.20
0
$0
$687.70
0
$0
$1,105.00
5 $5,525
$1,942.20
5 $9,711
$4,292.60
2 $8,585
$5,077.80
0
$0
$8,923.20
0
$0
$13,884.00
0
$0
$18,486.00
0
$0
Years Covered > 12 $23,821 << FEGLI COST
7. Family coverage
1 to 5 units
Spouse
1 Unit = $5,000 Max $25,000
Children 1 Unit = $2,500 Max $12,500
Not convertible
Children coverage ends at age 22
Premium increase after age 35 every 5 years
Premium does not reduce when children age out
8. FEGLI
Election Change Form SF-2817
Designation of a Beneficiary SF-2823
USPS
HR Shared service center
Attn: Compensation & Benefits
PO Box 970400
Greensboro, NC 27497-0400
www.opm.gov
