Can an expert ever be wrong? Absolutely! Sometimes it happens through oversight. In others through oversimplification, by reading the wrong line in an official source document, or from letting one’s fingers gallop ahead of one’s brain.
In a recent series of articles, I wrote about the Federal Employees’ Group Life Insurance program and, along the way, made some mistakes and created some misunderstandings that need to be cleared up. So, with your indulgence, I’ll now try to set the record straight.
Designation of Beneficiary Form
The correct form to designate a beneficiary for your FEGLI insurance is Standard Form 2823, which you can get from your personnel office or download from OPM’s web site by going to www.opm.gov/forms/html/sf.asp. The SF 2808 (CSRS) and 3102 (FERS) apply only to retirement.
AD&D Coverage
As long as you are an employee, your accidental death and dismemberment coverage remains intact. It doesn’t decrease. What does decrease with age is the extra benefit provided at no cost to employees. For those under age 35, the face value of their coverage is multiplied by two, giving it twice the dollar value. Beginning at age 36, the multiplier is reduced by 1/10th until it reaches zero at age 45.
Optional Coverage
If a retiree elects to have his Option B insurance decrease at a rate of 2 percent per month beginning at age 65, premiums will cease and the face value of the coverage will decrease to zero not to 25 percent. As for Option C, while it (as well as Options A and B) can be cancelled at any time, the benefits cannot be assigned to anyone else. Only insurance benefits that are based on the life of the insured can be assigned, not those that apply to others.
Post-retirement
If you elect to retain either the full face value of your Basic life insurance at retirement or keep it at half that value, you can change your mind at a later date. However, you can only reduce the level of coverage.
Well, I hope this has been as helpful to you as it has been to me. I want to thank all those who read my articles on FEDweek.com and who took the time to call these points to my attention. Although, as John Locke stated, “All men are liable to error,” it’s better to commit as few of them as possible.
