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Pros and Cons of Federal Employee Life Insurance

Pros and Cons of Federal Employee Life Insurance

Employees of U.S. federal consider the Federal employee group life insurance to be the best. They are right up to a great extent as this insurance covers most of the basic plans. In addition to the basic needs it provides, this insurance has three basic plans namely A, B, and C.

Although this insurance is the best federal employee insurance, there are pros and cons of which many employees are unaware of. Here, we bring you all the advantages and disadvantages of this federal insurance and reasons why this became the best federal employee insurance among all which are offered.

Pros

  • You are automatically registered to the insurance if you are a federal employee. You don’t have to give any medical exams or submit any documents. Conveniency of deducting the premium from your paycheck is also offered.
  • As discussed above you have the power and choice to change the option. Your basic plan surrounds your salary up to the nearest thousand and plus 2000$. Option A adds 10000$ more and option B gives you the ability to add more than it.
  • Family coverage is also possible. The security and health of your spouse, parents, and children can be covered in option C plan.

Cons

  • Cost is the main factor here, the selection of an extra package apart from the basic one will add to your capital money as well as the premium. In option C the age of your family member(s) is not considered. Instead, your age will be considered wherein you end up paying more premium as you grow old.
  • If you lose the job, the plan automatically gets scrapped, and you lose FEGLI’s coverage.
  • Though FEGLI offers 2-3 options, there is a pool of options which it doesn’t cater with such as whole life insurance and single premium whole life insurance.
  • You cannot increase your coverage and if you want to, you have to go through a physical exam. The last review conducted was in 2004, so it is no use of thinking to stretch your coverage.

Like every coin has two sides, this insurance also has twin aspects. But as the pros outweigh the cons, it has qualified as the best federal employee insurance.

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