FEGLI Insurance: Everything You Need to Know

Are you a federal employee? If so, you may be eligible for Federal Employees’ Group Life Insurance (FEGLI) coverage, a program that provides life insurance to over four million federal employees, retirees, and their families.

What is FEGLI Insurance?

FEGLI is a group term life insurance policy that provides coverage to eligible federal employees. It is administered by the Office of Personnel Management (OPM) and is one of the largest group life insurance programs in the world.

FEGLI provides basic life insurance coverage, as well as several optional coverage types, including:

FEGLI coverage is available to eligible federal employees without medical underwriting or physical examination, regardless of health status or pre-existing conditions.

Who is Eligible for FEGLI Coverage?

FEGLI coverage is available to:

• Federal employees in the executive, legislative, and judicial branches of government
• Federal employees of the U.S. Postal Service
• Retired federal employees who were covered under FEGLI when they retired and who continue to pay premiums
• The spouses and dependent children of eligible federal employees

FEGLI coverage is not available to contractors, members of Congress, or employees of the District of Columbia government.

How to Enroll in FEGLI Coverage?

Newly hired federal employees are automatically enrolled in Basic FEGLI coverage, which is equal to the employee’s annual rate of basic pay rounded up to the next thousand dollars plus $2,000.

To enroll in optional coverage, eligible federal employees must complete a SF-2817 election form and submit it to their Human Resources department within 60 days of their initial appointment.

Current federal employees can also change their FEGLI coverage by completing a SF-2817 form during the annual open enrollment period, which typically occurs in November of each year.

FEGLI Premiums and Costs

FEGLI premiums are paid by the insured employee and are automatically deducted from their paycheck. The cost of FEGLI coverage varies depending on the level of coverage selected and the age of the insured employee.

Basic FEGLI coverage is relatively inexpensive, with premiums ranging from $0.15 to $0.325 per $1,000 of coverage per month, depending on the employee’s age.

Optional FEGLI coverage, on the other hand, can be more expensive, with premiums ranging from $0.20 to $6.22 per $1,000 of coverage per month, depending on the employee’s age and the level of coverage selected.

It’s important to note that FEGLI premiums increase as the insured employee ages, so it’s a good idea to regularly review and adjust coverage levels to ensure that coverage needs are met at a reasonable cost.

FEGLI Benefits and Payouts

FEGLI insurance pays a death benefit to the designated beneficiary or beneficiaries in the event of the insured employee’s death. The amount of the death benefit varies depending on the level of coverage selected, but can be up to five times the employee’s salary plus $10,000 for basic coverage.

FEGLI benefits are paid tax-free to the designated beneficiaries and can provide financial security and peace of mind to loved ones in the event of an unexpected death.

FAQ

What happens if I leave federal service?

If you leave federal service, you can continue your FEGLI coverage for up to 31 days after separation. After that time, you can convert your FEGLI coverage to an individual policy without undergoing a medical exam or providing proof of insurability.

Can I change my FEGLI coverage at any time?

No, you can only change your FEGLI coverage during open enrollment or within 60 days of a qualifying life event, such as marriage or the birth of a child.

How do I calculate my FEGLI premiums?

To calculate your FEGLI premiums, simply multiply the amount of coverage you have selected by the appropriate rate based on your age and coverage type. The FEGLI Calculator on the OPM website can help you determine your premiums and coverage amounts.

What is the maximum amount of coverage I can have?

The maximum amount of coverage you can have under FEGLI is $870,000 for Basic, Option A, and Option B combined, and $570,000 for Option C coverage.

Is FEGLI insurance a good value?

FEGLI insurance can be a good value for federal employees who need basic life insurance coverage and who want to ensure that their loved ones are provided for in the event of their death. It’s important to regularly review coverage levels and costs to ensure that the coverage meets your needs and is affordable.

Conclusion

FEGLI insurance is an important benefit available to eligible federal employees and their families. It provides basic life insurance coverage, as well as optional coverage types, at affordable rates without requiring medical underwriting or physical examinations. If you’re a federal employee, it’s important to understand your FEGLI coverage options and to regularly review and adjust your coverage to meet your needs and ensure affordable premiums.