Browsing: Insurance

Q. I know that the long-term care insurance premiums that are made available to federal employees could rise, as they did a few years ago. I thought, however, that the rates would always be the same for all federal employees who obtain that insurance. One of your columns seems to suggest that the insurance company can raise my individual rates as I get older. Is that true if I am a federal employee? Maybe you mean that once I am retired, the company can raise my individual rates, even though the company cannot raise my rates individually as long as I am…

Q. What happens to life insurance you have been paying throughout the service after you retire? A. I’m not going to try to cover all of the possibilities here. An explanation is provided on pages 15 through 20 of the booklet at https://www.opm.gov/healthcare-insurance/life-insurance/reference-materials/federalbooklet.pdf.

Q. I had an accident (on my time) this year. Since my injuries impede me from performing the type of physical work I used to do, they are not offering me light duty and my sick leave is almost depleted, so I may have to retire. I’m thinking of purchasing the basic single life annuity with MetLife. I’m 63 years old and have $140,000 in my TSP. I had been planning in putting more in my TSP til age 66, but without the option to continue work I need to decide. Is this the annuity that pays the most or…

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…

Q. I’m 52 years old with 31 years of U.S. Postal Service time. I am contemplating leaving my federal job early. I know my minimum retirement age is 56. I would like to keep my health insurance and life insurance for my family. What are my options at this point? Deferred or postponed? Will I be able to still receive my Social Security supplement at 56? What about the money in my TSP and FERS accounts?

Q. I plan on retiring next August at 57 years old. I would like to buy an immediate annuity but do not want to buy the MetLife FERS annuity. Their interest rates for the annuity are extremely low compared to other annuities. When I retire at 57 years old, can I buy another annuity and avoid paying 20 percent upfront tax when buying that annuity? Also, can I get my payments without the 10 percent penalty for not being 59½?

Q. Regarding the Federal Long Term Care Insurance Program (FLTCIP), I had not thought about the lack of underwriting as a problem of being part of a pool of risky participants — at least for those of us who joined first. Do you think this is any more of a risk than our health care plans? Is the difference the number of participants rather than their level of health concerns? Can you elaborate on what it means that if you are protecting your own interests, you may be contributing to the demise of the program, and that what’s good for you may not…

Q. I recently retired from federal service without adequate information on purchasing Medicare Part B. On the surface I was wondering if it made any sense to expand my health insurance beyond what I was getting as a full-time employee. I was unable to find a source where someone actually did an economic analysis of the issue. From my standpoint, it is an economic decision: I can afford to pay either way. I have Kaiser health insurance in northern California, and it seems to save $5 when I see a doctor if I pay for Part B; $10 for a prescription. This…

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