My in-laws have asked me for a little help understanding their retirement benefits. They are both retired VA nurses. My mother-in-law is not in great health. My current specific question is with regards her VA/Federal life insurance.
I have a personalized retirement booklet that was prepared for her by OPM/the VA upon retirement. In it, she appears to have been eligible/signed up for three different forms of life insurance at retirement.
"Basic Life Insurance"
"Standard Life Insurance (Option A)"
"Additional Life Insurance (Option B)"
If I am reading this correctly, all three life insurance options began reducing by 2% of the original face value per month upon retirement. The Basic Life Insurance and Standard Life Insurance (Option A) both read as if there they will never go below 25% of their original value. The Additional Life Insurance (Option B) reads as if it will continue to reduce until it hits a value of $0.
By my math all three have now hit either their minimum (Basic and Option A) or zero (Option B).
My questions:
1) Am I understanding these benefits correctly?
2) I read somewhere, but now I cannot find it, that there was an accelerated death benefit if there was a terminal diagnosis of less than 9 months (I think) to live. Is this accurate? If so, is there a link to an official OPM/FERS document that explains the rules and processes? We are likely approaching that 9 month mark and I know they could use that money for caregiving.
Any other insights or resources are appreciated.
I might not respond right away as I might be out of pocket for a day or so, thank you in advance for any responses
I have a personalized retirement booklet that was prepared for her by OPM/the VA upon retirement. In it, she appears to have been eligible/signed up for three different forms of life insurance at retirement.
"Basic Life Insurance"
"Standard Life Insurance (Option A)"
"Additional Life Insurance (Option B)"
If I am reading this correctly, all three life insurance options began reducing by 2% of the original face value per month upon retirement. The Basic Life Insurance and Standard Life Insurance (Option A) both read as if there they will never go below 25% of their original value. The Additional Life Insurance (Option B) reads as if it will continue to reduce until it hits a value of $0.
By my math all three have now hit either their minimum (Basic and Option A) or zero (Option B).
My questions:
1) Am I understanding these benefits correctly?
2) I read somewhere, but now I cannot find it, that there was an accelerated death benefit if there was a terminal diagnosis of less than 9 months (I think) to live. Is this accurate? If so, is there a link to an official OPM/FERS document that explains the rules and processes? We are likely approaching that 9 month mark and I know they could use that money for caregiving.
Any other insights or resources are appreciated.
I might not respond right away as I might be out of pocket for a day or so, thank you in advance for any responses
Statistics: Posted by ScubaHogg — Sun May 26, 2024 12:06 am — Replies 0 — Views 37