USAFED--recent advice

[hugehail]

I'm wondering if any of you'all have any dealings with USAFED? I contacted them concerning the Roth TSP. After he answered my questions about it, he proceeded to ask me about my life insurance policy. I told him I had FEGLI 4X basic. He told me that for people over 40, this plan is not very good and it gets worse with age. He then sent me a couple of packets via email
that he wants me to fill out. The first one is a federal analysis and the other is for life planning.
Is USAFED a private company or something that is funded by the government? Can I assume that they are looking out for my best interest or are they trying to make a profit? Should I go with their recommendations?

[skiehawk11]

USAFED is now a part of Navy Federal Credit Union so it is a private company.

[SkyPilot]

FEGLI basic option can be a real bargain, but for the most part the rest of it is is often considered way overpriced. http://waepa.org/01_WAEPAvsFEGLI.html is another strong alternative, and often pays an annual premium refund http://waepa.org/07_PremiumRefunds.html.

[BigMike]

Hugehail,

I agree with Skypilot. Basic is excellent. The additional multiples are overpriced. It gets even more expensive at retirement. Basic and Option A are fine but carrying forward any of the multiples into retirement is way overpriced.

BigMike

[GT-NMSU]

Have you ever considered a 20~35 yr term?
Term is cheap, invest the difference. Become self insured, so you don't need a policy (imo). We went through primerica but I have heard good comparisons with zanderins. $350k coverage, 35yr term (covers us to age 60), 2 people, $30/mo per person.

Where could I get info on the FEGLI basic? I think our "new employee orientation" really talked down the plan with the same reason Hugehail mentioned above (it increases a lot with age). Anyone know if OPM or something has info on that policy?

[Snake05LOU]

FEGLI sucks. They told us that day one at the academy: "Take what you need now, and when you check out and you're secure, go with someone else".

I have WAEPA. Great coverage amounts, good prices and it's nice getting the end of year premium refund of 18-25%.
I got a 750k (with a 250K spousal, 150k AD&D and 300K additional accident) recurring term policy for $11 a month more than my FEGLI basic.

My FEGLI (Basic only) was $14.70 every two weeks for about 200K in coverage, nothing extra
WAEPA is $20.78 every two weeks for better than 3 times the coverage.
If I were to try to get the coverage I have under WAEPA under FEGLI, it would cost me $12 more a month and STILL not be as good. Nor does FEGLI refund 18-25% of your refunds each year....

True, you can still find insurance cheaper from other places but if you've ever told anyone in the insurance industry you're a 2152, you've seen how they pull out the "alternate" (AKA: "High Risk") premium schedule and your rates double, triple or they just laugh at you and decline to cover you.

[hugehail]

FEGLI sucks. They told us that day one at the academy: "Take what you need now, and when you check out and you're secure, go with someone else".

I have WAEPA. Great coverage amounts, good prices and it's nice getting the end of year premium refund of 18-25%.
I got a 750k (with a 250K spousal, 150k AD&D and 300K additional accident) recurring term policy for $11 a month more than my FEGLI basic.

My FEGLI (Basic only) was $14.70 every two weeks for about 200K in coverage, nothing extra
WAEPA is $20.78 every two weeks for better than 3 times the coverage.
If I were to try to get the coverage I have under WAEPA under FEGLI, it would cost me $12 more a month and STILL not be as good. Nor does FEGLI refund 18-25% of your refunds each year....

True, you can still find insurance cheaper from other places but if you've ever told anyone in the insurance industry you're a 2152, you've seen how they pull out the "alternate" (AKA: "High Risk") premium schedule and your rates double, triple or they just laugh at you and decline to cover you.

Is WAEPA better than navyfed??