Q: My husband payed into a civilian federal employee insurance policy for 28 years. He was riffed and retired in July 2001, but the insurance was still taken out of his retirement check on a monthly basis. He was notified by the federal insurance plan that he was no longer on the insurance plan as of age 65. He is now 67. What happened to the insurance policy and/or it’s value?
A: At age 65, his premiums stopped and the value of his Basic insurance began to decline at the rate of 2 percent per month. It will continue to do that until it reaches 25 percent of its face value.