Survivor benefits


Q. My husband and I both work for the Postal Service. He is retiring March 1 under CSRS. I have 25 years in working for the Postal Service and have at least eight years left to retire (FERS). We elected not to take the survivor benefits because I’m still working at the Postal Service and I will have him on my medical plan. We have two insurance policies on both of us in case of death. But I’m not sure if I understand the point of survivor benefits. Do you have any numbers on the pros and cons of survivor benefits, and are we wise for not taking it? We are both healthy and we have no dependents.

A. The survivor benefit will provide a survivor with a guaranteed income that is guaranteed to increase with inflation each year and guaranteed to last for life. These are guarantees that life insurance and retail annuities can’t match. Electing the CSRS or FERS survivor benefit is the safest bet for a survivor and should be considered the default choice until and unless you determine something else to be a better alternative. It is definitely not wise to make such an important decision without the proper analysis and understanding. It is also definitely not wise to trust an insurance agent to conduct this analysis.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to and view his blog at

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