Funeral Expenses and Small Life Insurance Policies

[NewbieHere]

Originally Posted by selhars

Are you saying the Fed employees who retire after age 65, can have life insurance that's free?

I was told employee life insurance is not free....that even the basic 1 1/2 times salary (or whatever the starter level is) requires the employee to pay a premium. A nominal one to be sure, but still one the employee had to pay....that it isn't free. Maybe that's for newer employees, not long timers?

It’s free after age 65 if you have pension from them. That’s what they told us. He retired at 64.5, he paid for life insurance up until 65 and it’s free after 65. The value of the life insurance is declining from full salary or whatever the amount was down to 25% and stays at that amount forever until death. The woman from OPM was joking to me that’s enough money for the funeral but not much else.

Here is a link to Option A,
https://www.opm.gov/retirement-servi...er-retirement/

[artillery77]

Originally Posted by selhars

^^Yes. That's what I was getting at.

Or have life insurance on the person, and pay for services out of that windfall. (Although technically I do see having insurance on someone when you don't need or won't miss their income as basically profiting from their death.)

To be honest, I'm don't understand this either. I believe that was the intention, but when they realized the high costs they wanted to do payments. They didn't know, but knew they wanted it taken care of for the time. They took the only, fairly horrid, option given to them.

Hence the question, how should this be done?