Insurable interest


Q. I am retiring in April, 2011 under FERS as a law enforcement agent in a covered position. I will have 23 years and two months of service.  I have been married for 38 years and my spouse is my age. Is there a benefit to opting for an insurable interest over the standard annuity?  Is there a drawback?  No one at CBP is able to answer this question for me.  I need to get my paperwork submitted in the next few days and cannot decide what to select for retirement annuity.

A. I can think of no advantage to electing an insurable interest annuity over a regular survivor annuity. Besides, you are required by law to provide your spouse with a regular survivor annuity, unless she agrees in writing to forgo that benefit.


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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

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