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Thread: FERS Annuity without Survivor Benefit + life insurance

  1. #1

    Join Date
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    Default FERS Annuity without Survivor Benefit + life insurance

    Hi everyone,

    So this question was posed to me the other day. Why not take the FERS Annuity without a Survivor benefit (higher monthly annuity), and use the extra funds to pay for a life insurance policy that would pay out when I die versus a reduced survivor annuity? Likewise, if both my wife and I pass, wouldn't the life insurance go to my adult children? I'm curious if anyone else has thoughts on this.

    Thanks,
    Gene


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  3. #2

    Join Date
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    Default Re: FERS Annuity without Survivor Benefit + life insurance

    1. If you die first, your wife won't be able to use FEHB as health insurance.

    2. There are better ways to pass wealth to generations if that is what you wish. House, property, investments, etc. Also, life insurance gets very expensive once you reach 60.

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  5. #3

    Join Date
    Jun 2006
    Location
    Missouri
    Posts
    97

    Default Re: FERS Annuity without Survivor Benefit + life insurance

    1. I didn't know that FEHB for my wife is contingent on me taking FERS annuity *with* Survivor Benefit (should I pass). That alone is a game changer.

    2. True

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