Life insurance


Q. I am a CSRS employee who will retire Sept 30, 2014. I have read that life insurance for an annuitant is $19.50 a month. I am not married and do not have children. Is there any advantage for me to have life insurance and spend the $19.50 a month?

A. If you are referring to FEGLI Basic coverage, you would pay $0.325 per month for every $1,000 of coverage you had on the day you retire. You would continue to pay that amount until age 65, when deductions would cease. At that point, your coverage would begin to decrease at a rate of 2 percent per month until it reaches 25 percent of the original face value.

I can think of two reasons you might want to continue your coverage: to have money available to pay for your funeral expenses or to provide a benefit for someone you designate on a Standard Form 2823.



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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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