Q: I am a 51-year-old federal employee with 32 years of service under CSRS. I have all the Federal Employees Group Life Insurance benefits: basic life; Option A standard; Option B additional life insurance (5x); Option C family. My children are grown, ages 31, 29, 21 and 19. The 19-year-old is in college and still living at home. I’m trying to figure out what would be the best choices for me to adjust my FEGLI coverage to. My husband and I are trying to save for our retirement. It’s time to make a change as I believe I’m carry too much coverage. Can you help me make a sound decision on what coverage I should have? I’m trying to get ready for that five-year window of retirement readiness.
A: Your beneficiary(ies) should be the ones to determine how much coverage is appropriate. To do it right, they’ll need to determine how much capital, in addition to what would otherwise be available, would be required to fund their financial needs if you die unexpectedly early and they live a long life.