For many federal retirees, private life insurance ends up costing less than FEGLI. FEGLI premiums increase as you get older, while private term policies offer a flat rate for a set number of years. Qualifying for private coverage depends on your health, and comparing your actual numbers side by side is the only way to know which costs less.
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A lot of federal employees assume that FEGLI is the safest or most affordable option just because it's what they've always had. But for many retirees, private coverage turns out to be significantly less expensive.
This can definitely be true depending on your age and your health. Private term life policies lock in a flat monthly cost for a set number of years, while FEGLI premiums go up over time. The catch is that private insurance requires you to qualify based on your health. So, it's not always the right fit for everyone.
The only way to know for sure is to compare your numbers side by side. For people in reasonably good health, the difference in cost can be pretty substantial, and that's money that could be doing something else in your plan. We're happy to pull some quotes so you can compare your options.
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