FERS Annuity without Survivor Benefit + life insurance

[genod]

Hi everyone,

So this question was posed to me the other day. Why not take the FERS Annuity without a Survivor benefit (higher monthly annuity), and use the extra funds to pay for a life insurance policy that would pay out when I die versus a reduced survivor annuity? Likewise, if both my wife and I pass, wouldn't the life insurance go to my adult children? I'm curious if anyone else has thoughts on this.

Thanks,
Gene

 

[Bullitt]

1. If you die first, your wife won't be able to use FEHB as health insurance.

2. There are better ways to pass wealth to generations if that is what you wish. House, property, investments, etc. Also, life insurance gets very expensive once you reach 60.

 

[genod]

1. I didn't know that FEHB for my wife is contingent on me taking FERS annuity *with* Survivor Benefit (should I pass). That alone is a game changer.

2. True