Long before technology allowed for all of us to carry our calendars “on our hip”, my mom would buy herself a new monthly calendar for the upcoming year every December 1st. She was meticulous about transferring important familial dates from one calendar to the next, such as birthdays, anniversaries for close friends, and even dates of death for loved ones gone too soon. By the end of the year, her calendar was packed with information – dates and scores of little league baseball games, the day that school started, or the day that my sister got her braces off. It really was a nice, reflective catalog of all that had happened the year (or even years) before.
As 2018 approaches in a matter of days, while we ‘physically’ don’t flip the calendars like we used to, it’s time to start anew and set our own individual course for the new year. Where will 2018 take me? Or my wife? Or my kids, parents, or even my two remaining grandparents (both are living in their 90’s now)? And more importantly, what all do I want to accomplish in 2018, both personally and professionally? What do I need in order to accomplish those specific tasks? So many questions…
With the arrival of the new year, it means it’s also time for the ‘dreaded’ New Year’s Resolutions – the once a year tradition where we pick some perceived personal shortcoming and promise to outperform the past year’s results over the impending year.
Per Google, the top resolutions searches in 2017 were as follows:
- Get Healthy
- Get Organized
- Live Life to the Fullest
- Spend Less, Save More
According to US News, 80% of people that make New Year’s resolutions have them fail outright by February 1st of the same year. Yes, that’s correct – 4 out of 5 people fail to complete their 12 month mission within the first 31 days. Ouch! (Maybe one of the top resolutions should be determination and/or persistence…but I digress…)
While we can’t help with all of those resolutions above, “Spend Less, Save More” is one that is well within your grasp, especially if you are over age 36, in good health, and are a non-smoker. And let us show you how you can Spend Less and Save More in 2018!!
You may know that FEGLI Option B coverage is calculated based on your chosen multiple of your income, between 1x – 5x of your Annual Salary. Your premium is based on the total FEGLI Option B coverage, multiplied by an insurance charge rate at your current age. That premium increases every five years the month after you turn 35, 40, 45, 50, etc.. to age 80, and your premium within your check stub merely increases and your take-home pay simply decreases accordingly. And you don’t get one notification about your pay going down. Your immediate premium increase can be as high as a 120%! That’s the equivalent of paying $200 one month and $440 the next month for the identical life insurance protection. We are here to tell you that you can potentially save an incredible amount of money by reviewing your FEGLI Option B benefit and consult with a reputable life insurance agent who specializes in FEGLI products.
I’ll give you a real world example of a Government Employee client that we helped just this past week. This client was a 44/Female (turning 45 in March) and had been paying for FEGLI for 18 years. This lady identified as Jody, had $1,000,000 of death benefit coverage (5x Option B on her $200,000 Salary), and wanted to keep the same death benefit through her working years. We were able to secure Jodi a $1,000,000, 20yr term life insurance policy at Preferred rates at an A+ rated carrier for less than $77.00 per month – and that premium (contractually) will not change for 20 years. That simple move will save Jody more than $77,000 over the next 20 years…see chart below.
| FEGLI Option B | Individual Life Protection | |
|---|---|---|
| Age 44 | $87.00 / month | $77.00 / month |
| Ages 45-49 | $152.00 / month | $77.00 / month |
| Ages 50-54 | $238.00 / month | $77.00 / month |
| Ages 55-59 | $433.00 / month | $77.00 / month |
| Ages 60-63 | $953.00 / month | $77.00 / month |
| TOTALS | $96,168.00 | $18,472.80 |
| Percentage Saved: | $77,695.20 (80.8%) |
A Life Insurance Broker or Financial Planner that specializes in this FEGLI space can be a great resource to discuss your personalized options. Some agencies even have calculators designed solely for Government Employees, where you can run multiple comparison quotes for yourself on one screen at your leisure and apply for coverage right online over a secure website. We recommend reviewing your FEGLI Option B Life Insurance rates immediately, and if you can lock in lower rates, we definitely suggest you apply to swap your coverage and realize your savings. And finally, only cancel your FEGLI Option B coverage after you receive a formal and acceptable life insurance underwriting decision from a reputable life insurance company.
Start your 2018 New Years Resolution list with “Spend Less and Save More”, and swap away from FEGLI Option B today. You’ll surely keep this resolution longer than 31 days!!
Now excuse me while I call mom and make sure that she has her new 2018 calendar.
Wishing you all the best in 2018! Be well.
An award-winning, 23-year veteran in the Life Insurance marketplace, Kristopher T. Smith is President and Owner of both FEGLIswap.com and Midwest Life Brokerage, in Aurora, Illinois. Kris enjoys both partnering with local agents and selling insurance directly to consumers open to saving premiums within their life insurance portfolio.
