In General

The Federal Employees' Group Life Insurance (FEGLI) program provides low-cost term life insurance for Federal civil service employees. FEGLI builds no cash value, loan, or paid-up or extended insurance equities. It is immediate protection against financial hardship or loss by death.

Are You Eligible for Coverage?

Eligible employees include all permanent and term employees, student trainees, and some temporary employees. Normally, if you previously declined FEGLI coverage, you may enroll:

• during open enrollment periods. Previous open enrollment periods were in 1981, 1985, 1993, 1995, and 1999 or
• after 1 year since your declined coverage; however, you will need to pass a satisfactory medical examination at your own expense.

Effective Dates of Coverage

If you are a new employee or an employee who has returned to the Government after 180 days break in service, then you have automatic FEGLI life insurance coverage…and you automatically pay premiums -- unless you decline coverage. This automatic coverage is effective the day you actually enter on duty in a pay and work status. If you waive coverage before the pay period ends (in 1 or 2 weeks depending on when you report to work) or you have a waiver in effect as a result of prior Federal employment, the change in coverage becomes effective on or after the day your Employee Benefits Counselors receives your election. If you are a new employee, you have 31 days to either elect or decline the optional insurance.

When you reach age 35, 40, 45, 50, 55, or 60, the new withholding rate will be effective on the first pay period the following January.

If you return to Federal service after a break in service of less than 180 days, any previous waiver of all life insurance coverage or a declination of one or more of the optional coverages is automatically still in effect.

Your coverage amounts…

Basic Life. Life insurance coverage is equal to your annual basic pay (rounded up to the next $1,000) plus $2,000. Your basic insurance amount automatically doubles if you are age 35 or younger. Beginning on your 36th birthday, the extra benefit decreases 10 percent each year until, at age 45, there is no extra coverage. Accidental death (double indemnity) and dismemberment coverage are an additional feature of basic life.

Optional Coverage

You must have the basic life insurance before you can elect any of the options below.

• Option A - Standard
  If you have basic life, you may elect an additional $10,000 in life insurance coverage. This option includes accidental death and dismemberment coverage. You pay the full cost of this insurance. Your age determines the cost as shown in the table.
• Option B - Additional
  If you have basic life, you may elect additional life insurance coverage. This coverage is from one to five times your annual basic pay (after you round your basic pay to the next higher $1,000). Option B does not include accidental death and dismemberment coverage. You pay the full cost of this insurance. The cost depends upon your age as shown in the table.
• Option C - Family
  If you have basic life, you may elect this option to provide for your spouse and eligible dependent children. You may elect either one, two, three, four, or five multiples of coverage.  Each multiple is equal to $5,000 for your spouse and $2,500 for each of your eligible dependent children.  Eligible family members include your present spouse and your unmarried dependent children under the age of 22 (other than a stillborn child). The cost depends upon your age as shown in the table.

Assignment & Living Benefits…

If you wish, you may irrevocably (one time only) assign your life insurance to another person or persons, a corporation, or an irrevocable trust. Also, you may elect to receive a lump-sum payment (living benefits) if you are terminally ill and have a documented medical prognosis that your life expectancy is 9 months or less.

How much does Basic life insurance cost?

You and your center share the costs of the basic insurance. You pay 2/3 and your center pays 1/3. Your cost is 15.5 cents every other week for each $1,000 of coverage. The extra coverage if you are under age 45 is free. The biweekly withholding rates for the optional coverage’s are listed in the following chart:

Biweekly Optional Withholding Rates

If Your Basic Pay Changes

The amount of your insurance changes if your annual basic pay increases or decreases by $1,000 or more. The new amount of insurance and the new premiums are effective on the date the pay change occurs.

Retirement with FEGLI Coverage

Your basic life coverage may continue when you retire if:

• you retire on an immediate annuity; and
• you had this coverage for the entire period(s) during which  coverage was available to you, or for the last 5 years of service immediately before your retirement; and
• you do not convert it to an individual policy.

The amount of your basic life coverage continues into retirement and does not reduce until the end of the month following the month when you reach age 65 or when you retire, if later, depending upon which election you make upon your retirement. Accidental death and dismemberment coverage stops at retirement.

The cost of post-retirement coverage depends upon the level of protection you want to keep after you reach age 65 or when you retire, if later. At the time you retire, you may choose one of the three following options:

Premium withholdings start at date of retirement. The $.3358 per $1,000 withholdings stop at age 65, but the $.59 or $2.04 per $1,000 withholdings continue for life or until cancellation or discontinuation of coverage.

Optional Insurance During Retirement…

If you meet the requirements stated above, you will have several choices of how much insurance you wish to carry after you are age 65 and retired.  Your Option A-Standard will begin to reduce by 2% per month beginning the second month after you reach age 65 or the second month after you retire, whichever is later, until it reaches 25% of the face value.  You will need to elect the number of multiples of Option B-Additional and Option C-Family that you wish to carry into retirement.  You may elect to take a full reduction or no reduction for each multiple.  The reduction will begin the second month after you reach age 65 or the first day of the second month after you retire, whichever is later.

Discontinuing Your FEGLI Coverage…

Your insurance coverage stops on the earliest of the following dates:

• the date you are separated from Federal service (unless eligible to continue during retirement or in receipt of worker's compensation);
• the date you have 12 continuous months in a non-pay (LWOP) status; or
• at the end of the pay period in which you waive or cancel your coverage.

Temporary Extension of Coverage and Conversion

When basic or optional insurance terminates, you continue to have life insurance protection (not accidental death and dismemberment) for 31 days. There is no extension of protection when insurance stops by waiver or declination.

During the 31-day period, you may apply for conversion to an individual policy up to the total amount of your FEGLI. Any individual policy you purchase under a conversion privilege is a private business transaction between you and the eligible insurance company you select. Here are some important things you should know about your conversion privilege:

• No medical examination is required.
• You must pay the life insurance premium applicable to the type of policy you select and your age and class of risk.
• The Government will not pay any part of the premium cost of your individual policy.
• Any insurance company you select may issue you an individual policy. Your selection; however, is from a list of eligible companies you will receive when you apply for conversion.
• Your individual policy may be in any form customarily issued by the insurance company, except term insurance; but, without disability or accidental death and dismemberment benefits.

FEGLI Retirement Chart