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Business Life

FEGLI Life Insurance Vs. Term Insurance

FEGLI Life Insurance Vs. Term Insurance through MyTerm.com

FEGLICompare your FEGLI Insurance today! You can get much more insurance then you are currently have for less. FEGLI is a group plan for Federal Employees, the rates increase every 5-years. This is the way your plan works, the government pays 1/3 and you pay 2/3 of the basic cost. The rate is .325/thousand per month, in other words if you coverage was for $100,000 the total cost would be $32.50/month or $390/year. The government pays 1/3 of this cost you pay 2/3's, this is the basic coverage, based on you salary.

Read more: FEGLI Life Insurance Vs. Term Insurance 

Types of Buy-Sell Agreements

Types of Buy-Sell Agreements

            When you want to create a buy-sell agreement within a company, there are two major ways to establish it. The first is known as a Cross-Purchase Plan, while the other is known as a Stock Redemption Plan.   In a Cross-Purchase Plan, the owners of a company buy life insurance on each other; with the owner of the policy also being the beneficiary.  Upon the death of one of the owners, the life insurance on the deceased owner funds the purchase of their interest.  

           In a stock redemption plan, the company owns the life insurance on the owners.  When one of the owners dies, the life insurance funds the purchase of the deceased owner’s interest.  The share of the surviving owner’s interest increases with one less owner.