November 29th, 2011 | Published in Uncategorized
Federal Benefits Open Season 2011 runs from 11/14/11 through 12/12/11. While the major emphasis of this open season is the Federal Employee Health Benefits or FEHB, it is also a great time to review other benefits available through the federal system as well as those areas where the federal benefits are inadequate.
Federal Employee Group Life Insurance Option “B” or FEGLI Option “B” is offered to federal employees in multiples of salary…1–5 x salary. In most cases, healthy individuals can reduce these FEGLI Option “B” costs by 50-80% simply by comparing with top commercial carriers. At allFeds.com FEGLI calculator , we provide instant side by side comparisons between the federal program and the top commercial carriers in the industry. In 2011, our average client has been able lock in guaranteed twenty year savings of over $100,000. To verify our comparison, please check the federal rates using the Federal Life Insurance.
Long Term Disability Insurance has long been a major deficiency in the federal benefits program. CSRS/ FERS Disability Retirement may provide coverage if you qualify. The problem is who qualifies and how long the process takes. The new FedAdvantage supplemental disability program was recently expanded to include all civilian federal employees including contractors. The FedAdvantage is a guaranteed acceptance program with no medical exams. Benefits are payable to age 65 at 50%, 60% or 70% of salary and are received income tax free. This new program finally offers comprehensive coverage for long term disability and fills the gap that has existed for many years. In many cases, the savings from the life insurance comparisons illustrated above will cover most of the cost of this disability plan. This plan has been especially popular with Air Traffic Controllers and law enforcement such as Air Marshals, FBI, NCIS and Secret Service agents.
Long Term Care Insurance is one of the most widely discussed benefits in recent years. Between the major rate increase experienced in the Federal Long Term Care Insurance Program or FLTCIP 2.0 and the recent withdrawal of the CLASS Act, the federal LTCi market has been unsettled at best. This much is still true, healthy federal employees under age 65 can still get substantially better coverage and lower premiums through commercial carriers. Please contact us for your LTC illustration.
Federal Employees Health Benefit or FEHB is explained in great detail in this video from OPM …http://www.opm.gov/insure/openseason/
Case Study: Female age 57 in excellent health was recently able to replace $500,000 of FEGLI Option “B” with $500,000 of twenty year level term through a top commercial carrier. Her immediate annual savings of $2,600 was enough to provide her a comprehensive $5,000 per month, income tax-free, long term disability coverage under the new FedAdvantage program AND a comprehensive Long Term Care plan through the top carrier in the marketplace. The life insurance comparison alone provided her a guaranteed twenty year savings of $219,000.
So as the Federal Benefits Open Season reaches it’s midpoint, take time to review all of your benefits. Remember, it’s your money…spend it wisely.