Life insurance is a valuable tool for managing financial risk and providing security for your loved ones in the face of life's uncertainties. Image: Rashevskyi Viacheslav/Shutterstock.com
By: Abraham GrungoldOne of life’s necessities for many active federal employees and federal retirees is life insurance. It is an important life decision.
Why do we need it? Life insurance is designed to provide financial protection for your loved ones in the event of your death. While it may not be necessary for everyone, there are several reasons why people choose to have life insurance:
1. Financial Security for Dependents
2. Covering Outstanding Debts
3. Funeral and Final Expenses
4. Education Expenses
The Federal government sponsors the Federal Employees Group Life Insurance (FEGLI) policies. It is very easy to obtain. No minimum requirements or physical exam is required. Every federal employee is automatically signed up for FEGLI when they begin federal service. You have to file a waiver if you choose not to carry this life insurance.
It’s important to assess your individual circumstances and financial goals to determine the appropriate amount and type of life insurance coverage for your needs. Life insurance is a valuable tool for managing financial risk and providing security for your loved ones in the face of life’s uncertainties.
What is important is that you designate a beneficiary when you start your life insurance coverage, and you need to tell your beneficiary that you have this policy. The insurance company does not contact your beneficiary in the event you pass away during the coverage period. Your beneficiary may have to submit a certified death certificate when they begin the collection procedure.
You can take your life insurance with you into retirement, but you need to evaluate your needs. As you age, your life insurance policy premium will increase in value.
Certainly, there are other life insurance companies and policies which are more affordable, but they require, medical histories and physical exams.
As a federal employee, I always had life insurance, but I obtained it through a private insurance company. And I discontinued my life insurance when I retired from federal service. My spouse and I decided it was something that we no longer needed in our lives.
Abraham Grungold is a retired federal employee with 36 years of federal service – including with the USPS Inspector General, the VA Inspector General, the US Dept of Justice, and the US Dept of Labor. Through his company AG Financial Services he helps federal employees with their TSP and federal retirement planning and decisions. Mr. Grungold has written over 50 articles regarding the TSP and FERS retirement and been a guest on several podcasts with the Federal News Radio and Government Executive Magazine.
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