Life insurance for retiree


Q. I retired some time ago and have a question about life insurance. I am closing in on 65 and the Office of Personnel Management said my life insurance would go up quite a bit by 65. Do I keep any of it (I have Basic, Option A and B)? I am starting to check out term life and comparing, but I am not sure how much of an increase my life insurance will go up. Life insurance companies I have talked to say the U.S. Postal Service rates are way bigger than what I would pay with them, this coming from salesmen who want to make a buck.

Long and short: Am I better off (monthly premium wise) choosing another carrier like AIG, etc.? I spend $135 now for FEGLI now and will get decreased coverage if I understand it correctly. I was quoted from one company term life $100,000 for $98. Any help will be appreciated.

A. You can learn about what your FEGLI premiums will look like here: The only premium in the retail market that matters is the one that is offered to you after medical underwriting has been completed, and the only way to know which is better for you is to compare the two.


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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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