The Federal Employees Group Life Insurance (FEGLI) program is great until you look at the price tag. As you age FEGLI (option B) skyrockets in price.
So is FEGLI the best option for you? Here are some of the best alternatives.
P.S. You can use this calculator to see how your FEGLI will change in price over time.
Wait! This First
Before shopping around for other insurance you have to ask yourself: Do I need life insurance at all? Some people simply don’t.
Also, the biggest advantage of FEGLI is that you already have it and even if you have health problems they won’t take your coverage away. So if you do have health problems then FEGLI may be the best option for you as you may not qualify for other insurance.
So make sure you fully secure other insurance before canceling FEGLI. If you aren’t sure if FEGLI is a good fit for you, check out this article.
Best Alternatives
There is no one insurance company that is a perfect fit for everyone, but here are the things to look for.
TERM! TERM! TERM!
There are two main types of insurance out there. Whole life and Term.
Whole life is meant to last your entire life so it can get very expensive.
Term insurance is designed to last for a set amount of time (ie 10, 20, or 30 years, etc.) and it tends to be much cheaper.
Fortunately, the vast majority of people only need term insurance as very few people need coverage forever.
Where to Look
The key to finding a good policy for you is to shop around. It’s hard to know if you are getting a good price unless you get multiple quotes. You can reach out to a bunch of different companies or use an online tool like Policygenius that compares the prices of a bunch of companies at once.
The Big Names
There are lots of good insurance companies out there but some of the larger ones are:
Friendly Faces
You can also see if a company you already use for other insurance (i.e. car/home insurance) offers life insurance. Sometimes it can be convenient (and there are often discounts) when you have multiple policies with the same company.
I personally (as of writing this) use USAA for my life insurance as they had great prices and I use them for other insurance as well.
The Local Agent
Most places also have local insurance agents like Farmers Insurance. These agents can be helpful in thinking through your options, but unless the agent you are using is independent (not tied to one company like Farmers) then they’ll only be able to show you the options from that one company.
No Perfect Option
There is no perfect insurance company out there, so I encourage everyone to shop around to find the best price for them.
