Question On Life Ins , FERS Retirement

[driz]

I sent in my papers a couple weeks ago and am happily anticipating my new existence in the upcoming year. I got my estimate and it all looks fine and dandy as far as I can see with just one little question, life insurance cost. I dropped all but the basic a while ago and indicated that was all I wanted to continue into retirement. For that I have been paying $13 / PP for a while now which is for aprox 90 k insurance. The estimate shows me paying $178 for what it appears is the same coverage. FWIW I'm 57. Of course the estimate doesn't elaborate I can't see how it comes to that number and unless I really was sitting on my head when the papers got filled out I didn't fill out any of the part A or B options. I'll be calling them to figure it out but in the mean time does anyone who has been there have any ideas how they came to that high a number?

 

[nnuut]

I sent in my papers a couple weeks ago and am happily anticipating my new existence in the upcoming year. I got my estimate and it all looks fine and dandy as far as I can see with just one little question, life insurance cost. I dropped all but the basic a while ago and indicated that was all I wanted to continue into retirement. For that I have been paying $13 / PP for a while now which is for aprox 90 k insurance. The estimate shows me paying $178 for what it appears is the same coverage. FWIW I'm 57. Of course the estimate doesn't elaborate I can't see how it comes to that number and unless I really was sitting on my head when the papers got filled out I didn't fill out any of the part A or B options. I'll be calling them to figure it out but in the mean time does anyone who has been there have any ideas how they came to that high a number?

The life insurance is prohibitively expensive, I only took 50% and cost's me $50 bucks a month any more than that was ridiculously expensive, forget about multipliers of 2 or 3 times!!!!!!! You can buy better and less expensive in the private market.

 

[clester]

I sent in my papers a couple weeks ago and am happily anticipating my new existence in the upcoming year. I got my estimate and it all looks fine and dandy as far as I can see with just one little question, life insurance cost. I dropped all but the basic a while ago and indicated that was all I wanted to continue into retirement. For that I have been paying $13 / PP for a while now which is for aprox 90 k insurance. The estimate shows me paying $178 for what it appears is the same coverage. FWIW I'm 57. Of course the estimate doesn't elaborate I can't see how it comes to that number and unless I really was sitting on my head when the papers got filled out I didn't fill out any of the part A or B options. I'll be calling them to figure it out but in the mean time does anyone who has been there have any ideas how they came to that high a number?

I don't know why it's so expensive but survivor benefit is basically life insurance. It's also expensive but you need it to keep health insurance anyway. If you need extra get term ins.

 

[CheapShot]

There could be reasons why someone would want to keep life insurance, if you are unable due to health reasons, could be one. Before terminating or reducing to 50% in retirement, the actual costs for 1x salary is really not that expensive even all the way up to age 69, beyond that it gets expensive very fast. So you can still reduce to 50% and maintain 1x salary. Of course if you can get insured on the outside it is normally cheaper.

 

[jimijr]

I chose the option that costs the least and declines to free at age 65. At this stage in life you don't need a lot of insurance. You have no young children for instance. I took the 50% survivor's benefit on my annuity, beneficiaries are all named on my various accounts and besides as a veteran I get burial.

 

[Frixxxx]

Life insurance payouts are not taxable on the whole, but planning your estate properly to avoid taxation is important.