Feds have five working days, until close of business Friday, to make two of what could be the most important financial decisions of their lives. Those who do nothing could wind up paying much, much higher long-term care insurance premiums and missing out on a once-in-a-decade chance to qualify for the federal group life insurance program. Ignoring these expiring deadlines is a negative decision.

One involves what happens to your loved ones when you die.

The other involves what happens to your loved ones when you don’t die.

Both deadlines (no pun intended) apply to you. And everybody who works for Uncle Sam. And their relatives and people who depend on you, who you will depend on emotionally and financially if you can’t take care of yourself.

Sept. 30 is the the deadline for making changes in your federal long-term care insurance coverage. Premiums will be going up for most of the 274,000 people who are currently enrolled in the program. The average increase is 83 percent (or $111 per month) but the increase will be much, much smaller for some people and much, much larger (like 126 percent) for others. Between now and the end of the month, you can decide to keep the same daily benefit with inflation-protection. If you do, your premiums will go up accordingly. But people also have the option to freeze their premiums by reducing some of their benefit package. They can also try to get LTC coverage from another company although, for most, that isn’t much of an option because they will likely pay more even if they can find a company that still offers that kind of coverage and will cover them. Most companies are getting out of the LTC business. At its peak, 104 companies offered LTC coverage. Now that number is down to 14.

According to LTC Partners which manages the program for John Hancock and the Office of Personnel Management, the “average” age when people first begin some kind of long-term care is 73.

Most people get their LTC at home. In some cases, a family member that does not live with them can provide that part-time or limited care and be paid for doing it. Once people go into a facility — because they need to be there — the bills really mount.

For some numbers and background on the open season, premiums and coverage listen to last week’s Your Turn radio program. You can get it anytime by clicking here.

Sept. 30 is also the deadline for signing up for the federal employees group life insurance plan (FEGLI) on a no-medical-questions-asked basis. In other words you can get coverage regardless of your age or medical condition. After this rare open season ends (the last one was 12 years ago) workers cannot get the FEGLI coverage without medical under writing which means a physical and answering a medical questionnaire.

For more on the importance of the FEGLI open season, check out what financial expert Michelle Singletary said in her Washington Post column.

Nearly Useless Factoid

By Michael O’Connell

Oleg Zhornitskly holds the world mayonnaise eating record. Zhornitskly downed four 32-ounce bowls of mayo in 8 minutes.

Source: Major League Eating

Copyright © 2024 Federal News Network. All rights reserved. This website is not intended for users located within the European Economic Area.