You might already know that a good life insurance policy is one of the best ways to protect your family. However, what exactly is a “good” life insurance policy? There are so many options out there, it’s easy to make a mistake when choosing your provider or plan.
A life insurance policy is an investment, and like any investment you should spend some time on research before making a final decision. As a Federal Employee, you have options but there are also a few things you need to know.
Step One: Perform an analysis. Sometimes people fall into the trap of selecting the first life insurance policy that appears to be a good deal, convenient, or some other deciding factor, but nothing is a good deal if it’s not what you need!
A full analysis of your life insurance needs will ask the important questions, to help you determine how much coverage you need and which type of policy is right for you. Take this important step first, and it will help you narrow down your options to the policies that will offer genuine protection.
Step Two: Consult with a professional who understands your Federal benefits! Did you know that it is possible for the life insurance premiums you pay while you are working to double, triple, or even more when you retire? Well, it’s true. The cost of your benefits, including your life insurance premiums, is being subsidized by the Federal government. When you retire, this stops and the result is often a shocking increase in your premiums.
Federal employees are eligible to take advantage of the Federal Employee’ Group Life Insurance (FEGLI) program, a group term life insurance program. However, there are varying levels of coverage and costs so it’s imperative to understand your options prior to making a decision – especially when you are near retirement.
It is extremely important for Federal employees to sit down with someone with experience in dealing with Federal benefits and not only explore the options, but also explore the costs.
Step Three: Continue to reevaluate your needs. Life insurance isn’t something you can purchase one time and then forget it. As your family changes, your life insurance policy should also change to reflect shifting needs. Perform a new life insurance analysis every two to three years, or after major life changes, and make the appropriate changes to your coverage.
Often, the biggest problem is that people forget to change their beneficiary designations when necessary. For instance, a marriage, divorce, birth, or death can all trigger the need for a beneficiary change. It is easy to forget and so critical to keep current.
Give us a call. We can help you analyze your initial life insurance needs, explain all of your options, and answer all of your questions. We have decades of experience working with Federal employees.
