Supplemental Life Insurance: Why You Need It

Are Your Loved Ones Fully Protected with Just Basic Life Insurance? If you’re a federal or postal employee, you likely already have life insurance through the Federal Employees’ Group Life Insurance (FEGLI) program. But is that enough? For many, it’s not. Supplemental life insurance can give you added protection and peace of mind, ensuring your family is financially secure no matter what life throws your way.

In this guide, we’ll break down why supplemental life insurance is essential, how it works, and how to choose the best plan for your unique needs.

What Is Supplemental Life Insurance?

Supplemental life insurance is additional coverage you can purchase beyond your FEGLI benefits. It provides extra financial protection for your family in case the unexpected happens. While FEGLI offers a solid foundation, its coverage limits may leave gaps in your financial safety net.

For instance, FEGLI Option B, which allows you to increase coverage, often comes with higher premiums as you age. Supplemental life insurance from private providers can offer more affordable, flexible options tailored to your needs.

Why Federal and Postal Employees Should Consider Supplemental Life Insurance

1. FEGLI Coverage May Not Be Enough
   The basic FEGLI coverage typically provides an amount equal to your annual salary, rounded up to the nearest $1,000. While helpful, this may not cover your family’s long-term expenses, such as:
   • Mortgage payments
   • College tuition
   • Everyday living expenses

   Supplemental insurance fills these gaps, ensuring your loved ones won’t face financial hardships.

2. Premiums for FEGLI Option B Can Be Costly
   As federal and postal employees age, the cost of FEGLI Option B increases significantly. Many find that private this life insurance policies are more cost-effective, especially for long-term coverage.
3. Customizable Coverage for Your Needs
   Supplemental policies offer flexibility. You can choose term life insurance, which provides coverage for a set period, or whole life insurance, which lasts your lifetime and may include cash value benefits.
4. Portability After Retirement
   FEGLI coverage may reduce or terminate when you retire. With supplemental life insurance, you can maintain coverage, giving you peace of mind during your retirement years.

Key Features to Look for

1. Affordable Premiums
   Compare costs across providers to find a plan that fits your budget while offering sufficient coverage.
2. Flexible Terms
   Choose a plan with options to increase coverage or adjust terms as your needs change.
3. Living Benefits
   Some policies allow you to access a portion of your coverage for medical expenses if you face a serious illness.
4. Guaranteed Coverage
   Many policies offer guaranteed acceptance, meaning you won’t need a medical exam.

Top Supplemental Life Insurance Providers for Federal and Postal Employees

1. The Benefit Coordinators
   Specializing in coverage for federal employees, The Benefit Coordinators offers affordable, customizable options that complement your FEGLI benefits. Their team understands the unique needs of federal and postal workers.
2. Aetna
   A trusted name in insurance, Aetna provides competitive rates and robust supplemental life insurance plans.
3. MetLife
   Known for their flexible options, MetLife offers policies with features like living benefits and portability.

How to Choose the Right Plan

• Evaluate Your Needs: Calculate your current and future expenses, including debts, living costs, and savings goals.
• Compare Providers: Look for reputable companies with strong customer reviews and competitive pricing.
• Consult an Expert: Speak with a licensed agent or the benefits coordinator to explore your options.

Common Questions About Supplemental Life Insurance

1. Is supplemental policies worth it if I already have FEGLI?
Yes! FEGLI provides basic coverage, but it may not be enough to fully protect your family. Supplemental insurance bridges the gap, offering additional financial security.

2. Can I keep my supplemental policies after retirement?
Most supplemental policies are portable, allowing you to maintain coverage even after you retire.

3. How much supplemental life insurance do I need?
A common rule of thumb is to aim for 10–12 times your annual income. This ensures your family can cover major expenses and maintain their standard of living.

Take Control of Your Financial Future

As a federal or postal employee, your dedication to serving others is unmatched. Now it’s time to secure your family’s future with the right supplemental life insurance policy.

At The Benefit Coordinators, we specialize in helping federal and postal employees navigate their benefits and find the coverage they need. Our team of experts is here to answer your questions and guide you every step of the way.

Explore your supplemental life insurance options today and ensure your loved ones are protected. Contact us now to get started.