Based on your choice, you can assign your Federal Employees Group Life Insurance to a single person, several people, trusts or firms. When you assign your Federal Employees Group Life Insurance, you hand over the ownership of your life insurance coverage forever. You can give up your ownership of a Life insurance policy such as Standard, Basic Optional, “Option A,” and Additional Optional “Option B.” Still, you cannot give up ownership on Family “Option C.”
You cannot assign Family “Option C” because you are the beneficiary under this policy and not the insured person. Once you assign your life insurance policy coverage, you will be the one paying for the premiums continuously while the assignee becomes the beneficiary.
You may want to assign your Federal Employees Group Life Insurance because of these three reasons.
To obey a court order.
When you are obeying a court order for a divorce, you can assign your group life insurance. Assigning your insurance coverage to your former spouse assures the court that your former spouse or the designated beneficiary will receive the life insurance benefits. According to the life insurance law, you may change your life insurance’s beneficiary.
For tax purpose meant for inheritance
Suppose an individual assigns his/her insurance policy at least three years before their demise. In that case, the assigned insurance becomes a gift to the assignee, instead of being an estate portion of the person insured. You can employ an expert estate advisor’s service if you want to assign your insurance due to this reason. When the individual dies, the IRS will determine if proceeds from the life insurance are included in the gross estate or not. To understand your insurance assignment’s tax effect, you can refer to case law, tax law and the IRS regulations.
To get accelerated death benefits.
Suppose you are terminally ill and want to get a part of your life insurance value before you die. In that case, you can hand over your coverage ownership to a viatical settlement firm. Before you assign your life insurance to a firm, you must examine if you can achieve a similar goal when you choose a Living Benefit. With the Living Benefit, you can collect a massive payment if your medical prognosis shows that you cannot live beyond nine months.
Contact Information:
Email: [email protected]
Phone: 8139269909
Bio:
For over 30-years Flavio “Joe” Carreno of The Retirement Advantage has been a Federal Employee Retirement System specialist (FERS) as well as a Florida Retirement System specialist (FRS) independent advocate. An affiliate of PSRE (Public Sector Retirement Educators), a Federal Contractor & Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants. We will help you understand your FERS & FRS Benefits, TSP & Florida D.R.O.P. withdrawal options in detail while recognizing & maximizing all concurrent alternatives available.Our primary goal is to guide you into retirement with no regrets; safe, predictable, stable, for life. We look forward to visiting with you.
Disclosure:
Not affiliated with the U.S. Federal Government, the State of Florida, or any government agency. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Although we make great efforts to ensure the accuracy of the information contained herein we cannot guarantee all information is correct. Any comments regarding guarantees, safe and secure investments & guaranteed income streams or similar refer only to fixed insurance and annuity products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC insured.
