Federal Employee Post-Retirement Life Insurance
Are Federal Employees Able to Keep Their Life Insurance Plan After Retiring?
Federal employees that are approaching retirement age may be wondering if they can keep their life insurance after retirement. Federal Educators explain that it is possible but there are specific criteria that must first be met to do so. Read on to learn more about the process of retaining your life insurance after leaving a federal job.
There are a few requirements necessary to keep your Federal Employee Health Benefits (FEHB) after retirement. To maintain a seamless insurance transition, a federal employee must have been enrolled in FEHB with active coverage at the date of their retirement. Additionally, they must have been covered by the FEHB program for at least five years before retirement. It’s important to note that those with less than five years of coverage may still qualify if they or a family member were continuously covered by FEHB from the first time they qualified for enrollment. If there was a break in coverage during the five-year vetting period, you may still qualify but ask your human resource department about eligibility. However, if there was a lapse in your coverage because it was canceled, you would more than likely not qualify for FEHB.
To confirm an automatic transfer of FEHB, qualified federal employees will need to fill out a Standard Form 3107 to apply for retirement with an immediate annuity. The Office of Personnel Management (OPM) should automatically transfer FEHB coverage as part of the retirement application process. Check the OPM website to make sure all steps are taken first. Working with a professional team can help you navigate any nuances.
Cost is a huge advantage for retaining FEHB coverage. The cost of health insurance remains the same for federal employees after they retire because the government continues to pay a portion of the health insurance. This equates to big savings because typically, FEHB pays 72-75% of the cost. Spouses and family members may qualify for this discounted coverage too.
If you need a personalized retirement plan, look no further than the Federal Educators team. We can create a thorough and well-balanced plan that will help you enjoy retirement! Start your complimentary benefit analysis now or call us at (813) 755-7037 to get started today.