Q. Is the life insurance paid by federal employees the type you can cash out?
Browsing: LIFE INSURANCE
Q. Recently, I have heard that if a person buys life insurance, he cannot earn Medicare benefits. Is it true?
Q. I was placed on nonpaid suspension on April 16, 2012. I was terminated April 8, 2013. When does my Federal Employees’ Group Life Insurance coverage end?
Q. My entrance on-duty date is May 1971, and I was reading that employees stop getting the government contribution to their retirement at 41 years one month. Would this apply for part-time employees? If not (being optimistic), would they factor in the part-time years of service and add on the years to equate to this timeline? For example, for someone who worked 10 years at 20 hours a week, deduct five years and continue contribution till the total 41 years one month are completed. Also, is there a ratio of how many retirees elect to take out an insurance policy…
Q. I will have been a federal employee for five years on Aug. 31. I will be 61 years old. I would like to leave federal service effective on that date. Will I be entitled to a pension? If so, how do I determine the amount. What is the financial impact if I wait to retire until August 2014 when I am 62?
Q. I will be retiring at the end of this year with 37 years and 10 months of service. I am a CSRS employee who will be 57 years old in September. My annual annuity would be $81,958 a year. I will have a little over $200,000 in my Thrift Savings Plan account. Is it smartest to take the spousal annuity or take out a life insurance policy on myself to sustain my wife once I pass away? My annual annuity will be reduced by around $7,900 a year if I choose the spousal annuity. Which would be the wisest?
Q. I am a FERS employee who will be retiring under early retirement rules for air traffic control. I will turn 55 in April 2014 and plan to retire Jan. 4, 2014. Everything I read says that if I retire in the year I turn 55, there will be no early withdrawal penalty for my Thrift Savings Plan. My human resources specialist says I must retire after I turn 55 — after my birthday in April. Which is correct? I also understand the advantages of retiring close to the end of the month, ideally the last day. However, Jan. 4…
Q. I am retired CSRS. I elected two life insurance options upon retirement and elected beneficiaries. I have lost all of the paperwork involving the life insurance. I need to get copies of the insurance that I elected and the beneficiaries stated. Is there a phone number or website that I can contact to get the info?
Q. I was hired as a term employee Dec. 18, 2006, and am now being laid off along with 370 more term employees. I called FERS and they said because of my age, I keep my health insurance and life insurance. The qualifications were five years of service and having FERS, which I do, but I was wondering if that applies to term or temp employees also. I have worked for the Anniston Army Depot, Ala., for six years and three months. The depot is processing us out this week. My birth date is Jan. 5, 1951.
Q: Can you explain the maze of life insurance options once one retires? Especially the 50 percent, 75 percent or no-reduction options? A: When you retire, you must choose how much life insurance you want to carry into retirement. You can elect to retain the full face value of your policy on the day you retire or allow it to reduce by 75 percent or 50 percent. If you elect the 75 percent reduction, beginning at age 65 the coverage will decline by 2 percent per month until it reaches 25 percent of its original face value. If you elect…