FEGLI Option B can be great life insurance for federal employees when you’re young, but it gets expensive as you age. Here’s what you need to know. Most federal employees with FEGLI Option B don’t realize they’re overpaying for life insurance as they approach retirement. In this video, John Mason breaks down how FEGLI Option B works, when it makes sense, and the critical mistake to avoid at retirement that could cost you thousands.
What You’ll Learn:
✅ How FEGLI Option B premiums increase with age
✅ Why healthy federal employees often leave Option B
✅ How to compare Option B costs vs. individual term policies
✅ The three retirement options for Option B
✅ Why dropping Option B at 65 can be a costly mistake
✅ The 100% reduction option and how it works
Key Takeaway: This isn’t a license to drop your insurance; it’s a license to shop and see if you can do better. But if you’re close to retirement at 65, understand your options before making changes.
Resources: 📅 Schedule an Intro Call: https://www.masonllc.net/get-started
🎙️ Federal Employee Financial Planning Podcast: https://www.federalemployeefinancialp…
📧 The Federal Employee’s Guide to Survivor Benefits: https://www.masonllc.net/federal-empl…
Timestamps:
0:00 — Introduction: The FEGLI Option B Mistake
1:01 — How FEGLI Option B Premiums Work
1:45 — Understanding Adverse Selection
2:34 — When FEGLI Option B Makes Sense
3:20 — Shopping for Individual Term Policies
4:14 — Comparing Costs: FEGLI vs. Term Insurance
5:03 — Your Options at Retirement
5:53 — The Costly Mistake to Avoid
6:37 — The 100% Reduction Option Explained
7:21 — Timing Considerations for Retirement
8:07 — Final Thoughts: Coordinate Your Planning
About Mason: Mason is a fee-only financial planning firm specializing in federal employee retirement benefits. Our team of CFP® professionals helps federal employees understand FERS, TSP, FEHB, and survivor benefits to make informed retirement decisions.
Connect With Us:
LinkedIn: / masonandassociatesllc
Facebook: / masonandassociatesllc
Website: https://www.masonllc.net
Investment advisory services offered through Mason & Associates, LLC. This content is for general educational and informational purposes only and should not be considered specific investment, financial planning, tax planning, legal, or other professional advice.
