What Happens to Your Federal Benefits When You Die?

Death is a difficult and sensitive topic that many people avoid talking about. However, as a federal or postal employee or retiree, you need to be aware of what happens to your federal benefits when you die. You also need to plan ahead and make sure that your loved ones are taken care of and receive the benefits they are entitled to.

In this blog, we will explain the survivor and death benefits that are available to your spouse, children, and other beneficiaries. We will also share some tips and resources on how to prepare for this inevitable event and make it easier for your family.

Survivor Benefits for Your Spouse

If you are married and die while still working for the federal government, your spouse may be eligible for the following survivor benefits:

• A lump-sum death benefit of $35,000, plus 50% of your final annual salary.
• A monthly survivor annuity of 50% of your basic annuity, if you have at least 18 months of creditable service.
• A monthly survivor annuity of 55% of your basic annuity, if you have at least 10 years of creditable service, including 5 years of civilian service.
• Continued health insurance coverage under the Federal Employees Health Benefits Program (FEHB), if enrolled at the time of your death and your spouse receives a survivor annuity.
• Continued life insurance coverage under the Federal Employees Group Life Insurance (FEGLI), if enrolled at the time of your death and your spouse receives a survivor annuity.

If you are married and die after retiring from the federal government, your spouse may be eligible for the following survivor benefits:

• A monthly survivor annuity of 50% or 25% of your basic annuity, depending on the election you made at retirement.
• Continued health insurance coverage under the FEHB, if enrolled at the time of your death and your spouse receives a survivor annuity.
• Continued life insurance coverage under the FEGLI, if enrolled at the time of your death and your spouse receives a survivor annuity.

Survivor Benefits for Your Children

If you have dependent children and die while still working for the federal government, your children may be eligible for the following survivor benefits:

• A monthly survivor annuity of $563 per child, or $1,686 divided by the number of children, whichever is higher.
• Continued health insurance coverage under the FEHB, if enrolled at the time of your death.
• Continued life insurance coverage under the FEGLI, if enrolled at the time of your death.

If you have dependent children and die after retiring from the federal government, your children may be eligible for the following survivor benefits:

• A monthly survivor annuity of $563 per child, or $1,686 divided by the number of children, whichever is higher, if you elected a reduced annuity to provide for them at retirement.
• Continued health insurance coverage under the FEHB, if enrolled at the time of your death.
• Continued life insurance coverage under the FEGLI, if enrolled at the time of your death.

Death Benefits for Your Other Beneficiaries

If you do not have a spouse or dependent children, or if they are not eligible for survivor benefits, your other beneficiaries may be eligible for the following death benefits:

• A lump-sum payment of your remaining retirement contributions, plus interest, if any.
• A lump-sum payment of your basic life insurance coverage, plus any optional coverage, if any.
• A lump-sum payment of your unused annual leave, if any.

How to Prepare for Your Death

As you can see, there are many benefits that your loved ones can receive when you die. However, they may not be aware of them or know how to claim them. That is why you need to prepare for your death and make it easier for your family. Here are some steps you can take:

• Review your federal benefits and make sure they are up to date and accurate.
• Designate your beneficiaries and make sure they are aware of their rights and responsibilities.
• Create a will and a living trust and make sure they are consistent with your beneficiary designations.
• Organize your important documents and records and make sure they are accessible and secure.
• Communicate your wishes and preferences to your family and friends and make sure they are respected and honored.

Conclusion

Death is inevitable, but it does not have to be stressful and complicated for your loved ones. By understanding your survivor and death benefits and planning ahead, you can ensure that your family is taken care of and receives the benefits they deserve.