Welcome Guest! To enable all features please Login or Register.



Retirement Planning

Whether you are close to federal employee retirement or just starting out in your career, this is the place to share ideas with your federal colleagues on creating a secure financial foundation.

To read today's top news stories on federal employee related news visit FederalDaily.com.

Go to last post Go to first unread
#1 Posted : Tuesday, February 16, 2021 5:35:06 AM(UTC)

Rank: Rookie

Groups: Registered
Joined: 11/30/2007(UTC)
Posts: 34

I am 51 and plan on retiring in 5-8 years. I currently have basic life insurance, which I have had since I started 27 years ago. I am trying to figure out the most cost effective way to take advantage of the life insurance benefits. It appears that I want to keep the basic insurance (1x rate of pay plus $200) for the rest of my life. It looks like the best way to go is take the 75% reduction plan. If I go this way, do my premiums drop to $0 the day I retire or do they stay the same (33 cents per thousand per month) until I turn 65? Either way, at this point, it seems like a relative bargain.

The Option A for $10,000 is a little more complicated, but it still seems like a reasonable investment at the 75% reduction rate. Basically, I pay $4.33/mo until I turn 60 (about $300) plus another $780 between 60 and 65 ($13x12x5), for a $2500 pay out to my heirs.

Thank you
#2 Posted : Tuesday, February 16, 2021 3:38:09 PM(UTC)

Rank: Senior Member

Groups: Registered
Joined: 6/30/2009(UTC)
Posts: 442
United States
Location: the moral high ground

Thanks: 5 times
Was thanked: 42 time(s) in 32 post(s)
You pay the Basic Premium until age 65. The Basic, 75% reduction plan is a good deal.

I would look at Option A a little different than as a 'reasonable investment'.
I would do the calculation to include the 27 years sunk cost to age 51
then look at another 14 years of premiums for a $2500 pay out.

In the year 2060 a Snickers bar will cost $2,500 and your heirs
are gonna say "what a gyp!"

Edited by user Tuesday, February 16, 2021 4:18:50 PM(UTC)  | Reason: added a important post script

Retired July 2011
#3 Posted : Wednesday, February 17, 2021 7:46:01 PM(UTC)

Rank: Senior Member

Groups: Registered
Joined: 8/25/2016(UTC)
Posts: 5,554
United States
Location: Midwest

Thanks: 150 times
Was thanked: 1065 time(s) in 858 post(s)
Are you in good health? Have you priced TERM insurance?
Socialist governments traditionally do make a financial mess. They always run out of other people’s money. --Margaret Thatcher
Rss Feed  Atom Feed
Users browsing this topic
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

This page was generated in 0.212 seconds.