FEGLI has a few “bright spots”, but cost isn’t one of them.
To begin with, federal employees who do not smoke, are paying the exact same rate as the federal employees who smoke four packs of cigarettes a day. Protective Life rewards federal employees who don’t smoke, with significantly lower premiums than those federal employees who are smokers. But even if you do use tobacco products, the chances are pretty good that Protective Life can still save you money when compared to what you are paying for your FEGLI coverage.
Then there is your health. FEGLI charges the exact same rates for a federal employee who has significant health problems as it does for a federal employee who has never been sick a day in their life. On the other hand, Protective Life rewards federal employees who are in good health, with significantly lower premiums than those federal employees who are in “below average to poor” health.
But the worst aspect of FEGLI, in our opinion, is the exorbitant rate increases that occur every five years. These rate increases become so prohibitive, that many federal employees after they retire, drop their FEGLI Option B coverage because of the cost.
Protective Life can offer you rates that are locked in for up to 30 years