Michael Vining

Chatham, New Jersey 07928

With over 30 years of experience in financial services, banking, and insurance, I help federal employees navigate their benefits with confidence. My journey began at the United States Naval Academy, where I earned a Bachelor’s Degree in Engineering with a major in Analytical Management.

During my military service, I managed federal employees responsible for processing pay and benefits for Navy personnel. This experience gave me an introduction into federal employee benefits, which I now use as a Federal Retirement Consultant and as a Benefit Coordinator to help federal employees make informed decisions about their financial security and retirement planning.

I hold insurance licenses in Georgia, Kansas,New Jersey, Pennsylvania,  and Washington, DC, and have extensive experience as a licensed mortgage banker. Whether through formal classroom education, training sessions, or one-on-one consultations, I am committed to empowering federal employees with the knowledge they need to maximize their benefits and secure a financially stable retirement.

📩 Let’s connect! If you’re a federal employee looking for guidance on your benefits and retirement planning, Click HERE to reach out.

Avoid FEGLI Mistakes: Protect Your Benefits and Save Money

Are you paying too much for life insurance or risking your family’s financial security because of common errors? Federal and postal employees often depend on the Federal Employees’ Group Life Insurance (FEGLI) program, but failing to avoid FEGLI mistakes can result in higher premiums, outdated beneficiaries, or insufficient coverage.

This guide will help you recognize the most frequent FEGLI mistakes and show you exactly how to avoid them. By taking simple steps now, you can protect your benefits, save money, and give your family peace of mind.

1. Paying for Coverage You Don’t Need

One of the easiest mistakes to make is paying for more FEGLI coverage than necessary. While the Basic plan is affordable, adding extras like Option B can quickly drive up costs as you age.

Why It Happens:

  • Employees select extra coverage without comparing costs or considering long-term affordability.
  • FEGLI premiums for optional coverage increase sharply with age, often making it less cost-effective over time.

How to Avoid This Mistake:

  • Review your policy annually. Ensure that your coverage matches your financial needs.
  • Compare the cost of private life insurance policies to FEGLI. Many private options offer better rates for the same or higher coverage.
  • Use the OPM FEGLI Calculator to determine if FEGLI is still your best option.

2. Failing to Update Beneficiaries

Another common error is forgetting to update your FEGLI beneficiary forms. If your information is outdated, your life insurance payout may not go to the intended person.

Why It Happens:

  • Employees often forget to update their forms after major life events like marriage, divorce, or the birth of a child.
  • FEGLI benefits are distributed based on the most recent beneficiary form, even if your personal wishes have changed.

How to Avoid This Mistake:

  • Regularly review and update your beneficiary information. Make updates immediately after significant life events.
  • Submit the updated Beneficiary Form (SF-2823) to your HR department.
  • Keep a personal copy of the updated form for your records to avoid disputes.

3. Misjudging Costs in Retirement

One of the most overlooked FEGLI mistakes is not understanding how premiums change after retirement. Optional coverage, such as Option B, becomes significantly more expensive, leaving many retirees with unexpected financial burdens.

Why It Happens:

  • Employees assume their premiums will remain consistent after leaving federal service.
  • Rising costs in retirement are not factored into long-term financial planning.

How to Avoid This Mistake:

  • Understand your retirement premiums. Research how costs for optional coverage will change after retirement.
  • Reduce or eliminate unnecessary optional coverage to minimize costs.
  • Consult a federal benefits expert to determine the best life insurance strategy for your retirement years.

4. Ignoring Private Insurance Alternatives

Relying solely on FEGLI is another frequent mistake. While it’s convenient, FEGLI isn’t always the most affordable or comprehensive option for every federal or postal employee.

Why It Happens:

  • Employees assume that FEGLI is the only option because it’s a government-provided benefit.
  • They don’t explore private life insurance policies that may better meet their needs.

How to Avoid This Mistake:

  • Shop around for private life insurance. Compare private policies with FEGLI’s optional coverage to find the most cost-effective solution.
  • Supplement your FEGLI Basic plan with a private policy for better coverage at lower rates.
  • Work with experts like The Benefit Coordinators to understand your options.

5. Skipping Regular Policy Reviews

Many federal and postal employees make the mistake of treating their FEGLI policy as a one-time decision. Life circumstances change, and failing to review your policy can leave you with too much or too little coverage.

Why It Happens:

  • Employees assume that the coverage they chose at the start of their careers will always be sufficient.
  • Significant life events, like a new child or a change in income, are not reflected in their policy.

How to Avoid This Mistake:

  • Schedule annual reviews. Evaluate your policy during open enrollment or whenever you experience major life changes.
  • Use the OPM FEGLI Calculator to ensure your coverage still meets your needs.
  • Get professional advice to help align your policy with your current financial goals.

Avoiding FEGLI Mistakes Saves Money and Protects Your Family

Avoiding these common FEGLI mistakes is critical to making the most of your federal benefits. By reviewing your policy regularly, updating your beneficiary information, and exploring alternative options, you can ensure your family is fully protected without overspending.

At The Benefit Coordinators, we specialize in helping federal and postal employees optimize their FEGLI benefits and life insurance choices. Visit The Benefit Coordinators today for a free consultation and personalized guidance.

Take Action to Avoid FEGLI Mistakes Today

Don’t let simple errors cost you or your loved ones. Contact us now to secure your benefits, save money, and ensure your family’s financial future. Let us help you make smarter decisions about your life insurance coverage.