How does FEGLI differ from BEDB? (Fed employ)

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tomwood
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How does FEGLI differ from BEDB? (Fed employ)

Post by tomwood »

As understood the federal life insurance policy, known as FEGLI, an employee would be automatically opted in, and had the option to increase the benefits.

I found this website discussing FERS Basic Employee Death Benefit (BEDB) and this sounds like a life insurance policy but the website doesn’t mention FEGLI, so it confused me. Can anyone clear this up for me https://www.opm.gov/retirement-services ... survivors/
fundseeker
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Re: How does FEGLI differ from BEDB? (Fed employ)

Post by fundseeker »

Sorry, don't have the answer to that, but just want to suggest that before you buy FEGLI, please shop for term life from a reputable insurance company (e.g., USAA, Protective Life), if you're insurable. FEGLI is very expensive. Good luck!
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nps
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Re: How does FEGLI differ from BEDB? (Fed employ)

Post by nps »

FEGLI is optional, has varying coverage amounts and costs money for premiums. BEDB is a standard benefit, is a set amount that adjusts based on salary and cost of living, and costs you nothing.
bene1
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Re: How does FEGLI differ from BEDB? (Fed employ)

Post by bene1 »

Glad to see this mentioned as I get a sense many folks are not aware of this benefit.

The Basic Employee Death Benefit (BEDB) is a benefit to all employees covered under FERS. It is distinct from Federal Employees' Group Life Insurance (FEGLI). No need to apply, opt-in, pay premiums, etc. It acts as free life insurance of 50% of final salary plus $32,423.56.

There are a few caveats outlined on the linked webpage, including...
- BEDB is a set amount of coverage. With FEGLI (or other private insurance), you choose the level of coverage and pay the premiums.
- Must have 18 months of service under FERS. With FEGLI (or private), coverage is effective immediately.
- It appears the BEDB is only payable to a current or former spouse. With FEGLI (or private), you can choose any beneficiary.
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tomwood
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Re: How does FEGLI differ from BEDB? (Fed employ)

Post by tomwood »

fundseeker wrote: Thu Oct 10, 2019 8:11 pm Sorry, don't have the answer to that, but just want to suggest that before you buy FEGLI, please shop for term life from a reputable insurance company (e.g., USAA, Protective Life), if you're insurable. FEGLI is very expensive. Good luck!
Good tip thanks
Topic Author
tomwood
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Re: How does FEGLI differ from BEDB? (Fed employ)

Post by tomwood »

nps wrote: Thu Oct 10, 2019 8:45 pm BEDB is a standard benefit, is a set amount that adjusts based on salary and cost of living, and costs you nothing.
Excellent. Thanks
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tomwood
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Re: How does FEGLI differ from BEDB? (Fed employ)

Post by tomwood »

bene1 wrote: Thu Oct 10, 2019 8:59 pm Glad to see this mentioned as I get a sense many folks are not aware of this benefit.

The Basic Employee Death Benefit (BEDB) is a benefit to all employees covered under FERS. It is distinct from Federal Employees' Group Life Insurance (FEGLI). No need to apply, opt-in, pay premiums, etc. It acts as free life insurance of 50% of final salary plus $32,423.56.

There are a few caveats outlined on the linked webpage, including...
- BEDB is a set amount of coverage. With FEGLI (or other private insurance), you choose the level of coverage and pay the premiums.
- Must have 18 months of service under FERS. With FEGLI (or private), coverage is effective immediately.
- It appears the BEDB is only payable to a current or former spouse. With FEGLI (or private), you can choose any beneficiary.
This is great. Thank you for your help explaining the details.

I don’t want to confuse terms but can BEDB be thought of as a life insurance policy?

More specifically, could someone buy a lower amount of term life insurance, to join with BEDB and equate to the same as someone with a higher amount of term life?

Or am I missing something? Could this not easily be viewed as a partial life insurance policy? Thank you
tj
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Re: How does FEGLI differ from BEDB? (Fed employ)

Post by tj »

bene1 wrote: Thu Oct 10, 2019 8:59 pm Glad to see this mentioned as I get a sense many folks are not aware of this benefit.

The Basic Employee Death Benefit (BEDB) is a benefit to all employees covered under FERS. It is distinct from Federal Employees' Group Life Insurance (FEGLI). No need to apply, opt-in, pay premiums, etc. It acts as free life insurance of 50% of final salary plus $32,423.56.

There are a few caveats outlined on the linked webpage, including...
- BEDB is a set amount of coverage. With FEGLI (or other private insurance), you choose the level of coverage and pay the premiums.
- Must have 18 months of service under FERS. With FEGLI (or private), coverage is effective immediately.
- It appears the BEDB is only payable to a current or former spouse. With FEGLI (or private), you can choose any beneficiary.

Does BEDB go away at retirement or remain?
Topic Author
tomwood
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Re: How does FEGLI differ from BEDB? (Fed employ)

Post by tomwood »

tj wrote: Fri Oct 11, 2019 8:57 am

Does BEDB go away at retirement or remain?
Great question.
bene1
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Re: How does FEGLI differ from BEDB? (Fed employ)

Post by bene1 »

tomwood wrote: Thu Oct 10, 2019 9:14 pm I don’t want to confuse terms but can BEDB be thought of as a life insurance policy? More specifically, could someone buy a lower amount of term life insurance, to join with BEDB and equate to the same as someone with a higher amount of term life?
Sure, it's life insurance, with conditions. It's up to you whether the coverage amount is significant enough to impact any other policies you have. Also note that it's tied to current federal employment, not portable like a private life insurance policy.
tj wrote: Fri Oct 11, 2019 8:57 am Does BEDB go away at retirement or remain?
From what I can tell, it's only available for current employees. Also of note in the OP's link are other benefits for eligible former employees, such as the monthly survivor annuity or the lump sum payment of pension contributions.
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tomwood
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Re: How does FEGLI differ from BEDB? (Fed employ)

Post by tomwood »

bene1 wrote: Fri Oct 11, 2019 10:03 pm
tomwood wrote: Thu Oct 10, 2019 9:14 pm I don’t want to confuse terms but can BEDB be thought of as a life insurance policy? More specifically, could someone buy a lower amount of term life insurance, to join with BEDB and equate to the same as someone with a higher amount of term life?
Sure, it's life insurance, with conditions. It's up to you whether the coverage amount is significant enough to impact any other policies you have. Also note that it's tied to current federal employment, not portable like a private life insurance policy.
tj wrote: Fri Oct 11, 2019 8:57 am Does BEDB go away at retirement or remain?
From what I can tell, it's only available for current employees. Also of note in the OP's link are other benefits for eligible former employees, such as the monthly survivor annuity or the lump sum payment of pension contributions.
I appreciate all this helpful information. Thank you bene1
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