FEDS - should I drop FEGLI insurance?

[Anonymous]

FEGLI is costing me a fortune just for the basic level and only pays 1X salary if I die. I have term insurance that has low premiums, will pay out about $1.5M, and should be sufficient to cover my family’s needs. The term will expire after house is paid off and kid is fully launched, plus some years beyond that.

Is there any reason NOT to drop FEGLI?

[Anonymous]

I found a much better deal with WAEPA

[Anonymous]

Yes you should drop FEGLI.

[Anonymous]

Isn't there something that only lets you drop it during certain open periods which do not come up often? I was told it was a bad deal and went with a different term policy.

[Anonymous]

FEGLI is not a good deal if you are healthy because there's no screening of members, their premium is relatively high

[Anonymous]

I did and haven't looked back. I have a much better deal (cheaper and much higher coverage) through private insurance. I recall there being articles about why FEGLI's not a good deal so I'd Google them too.

[Anonymous]

Drop it for sure.

[Anonymous]

I dropped it immediately when I came on board.

[Anonymous]

Not a good deal. I switched to Mass Mutual and get $1.75 million in coverage for me for 20 years for about $1000/year.

[Anonymous]

Anonymous wrote:I found a much better deal with WAEPA

WAEPA is also a terrible deal as it's not level term. You'll always do better 8n the private market 7nless you are massively unhealthy or like to jump out of planes.

[Anonymous]

How much is your FEGLI? I never opted in to it because I always thought it was a little bit spendy. I ended up getting a term policy of 750k for 25 years for $100/mo (which is expensive I know, but I was 45 at the time, so I felt like I was lucky to get it. In 25 years, my 750k mortgage will be paid off and my kids launched (god willing lol).

[Anonymous]

Anonymous wrote:

WAEPA is also a terrible deal as it's not level term. You'll always do better 8n the private market 7nless you are massively unhealthy or like to jump out of planes.

WAEPA is the private market and is no way associated with the government. When we shopped around 15 years ago, WAEPA was the best deal we could find.

[Anonymous]

Appreciate this thread. Made me compare rates and it’s definitely more than our private term life insurance policy. We are planning to up that anyway so will drop fegli once the new policy is in effect. Great timing as I’m about to turn 35 and benefits start to drop off at this point.

[Anonymous]

I dropped FEGLI for a private term policy when I was 25 and a few years into my fed tenure, for the reasons PPs have stated. $20/mo for a $300k 25 year policy. Thankfully a financial adviser steered me well

[Anonymous]

Just to compare, I pay 45/month for 500k 30 yr term. fegli is 52/month for 2x salary (currently 300k but would have been more like 230k when I opted in) but that drops between 35 to 1x salary by 45.