The Federal Employees’ Group Life Insurance (FEGLI) program is available to most full and part-time Federal employees, retirees, and some family members. Unless you opt out, you’ll be enrolled in the basic Federal Government Life Insurance plan; this includes employees of Executive Branch agencies (the Government pays for 1/3 of your cost), some legislative and judicial branch employees, and Postal Service employees (the Government fully pays for your Basic plan). While most part-time federal employees are eligible to enroll, temporary and seasonal or intermittent employees are not eligible, even if they are eligible for health insurance.

FEGLI Basic & FEGLI Extra Benefit

FEGLI Basic: This is based on your annual rate of basic pay, rounded to the nearest $1,000, plus $2,000. You must enroll in Basic if you want to elect Extra Options.

This is a great plan, but because your bi-weekly premiums may be significantly more expensive than other market place plans (almost doubling every 5 years), it’s worth reviewing your options with an Expert.

FEGLI Extra Benefit: This no-cost feature provides extra financial protection for federal employees under age 45, who are enrolled in FEGLI Basic, at no additional cost. This feature doubles the Basic Insurance Amount (BIA) at age 35 or younger. That amount is reduced by 10% a year from age 36 to 45, at which point the added benefit just phases out.

• Option A covers your life for $10,000 at no extra cost.
• Option B covers your life for up to five times your annual rate of basic pay.
• Option C includes coverage for your spouse (up to $25,000) and dependent children under age 22 (up to $12,500 each).

Life insurance is an essential part of your peace of mind, and a key component in many financial strategies. Whether you’re planning for the protection and security of the most important people in your life, paying off a home, replacing income for dependents, creating a legacy, or providing charitable contributions – a stellar Life Insurance plan can create a substantive provision.

FEGLI in Retirement

As a retiree, you can keep your FEGLI if you were covered under FEGLI for at least five years and you are retiring on an immediate (not deferred) annuity, and you have chosen to continue your coverage (with reduced or full benefits).

You should know that your FEGLI Premiums will increase dramatically in retirement as they are no longer government-subsidized (which is why many retirees choose a more sustainable, non-government plan). But, if you can keep your FEGLI coverage (alongside an additional plan), FEGLI becomes free after age 65. As a free plan, coverage will be reduced by 2% every month until it is reduced by 75%; a $100,000 policy will become a $25,000 policy.

FEGLI provides death benefits only; there is no redeemable cash value.

This is why many Federal Retirees have chosen a supplemental hybrid-plan, a plan that provides not only Life Insurance (often for less cost than maintaining FEGLI), but simultaneously provides for long term care needs, chronic needs, or terminal care if needed. To learn more, attend a My Federal Benefits Workshop, or request a one-on-one appointment with an Expert below.

Other Circumstances

Military Reservists called-up to Active Duty may, under some circumstances, continue their FEGLI coverage, and Federal Employees on Leave Without Pay (LWOP) can keep their coverage for up to 1-year, while rehired Federal Employees may have the opportunity to re-enroll.

• Separation or Termination: Your life insurance coverage (including Accidental Death and Dismemberment insurance) will stop the day you separate from Federal service. That said, you may be eligible to continue coverage as an annuitant (if you received a VERA) or while in receipt of workers’ compensation benefits.

FEGLI is provided with evidence of insurability at the time you start employment. While you can reduce your Life Insurance at any time, increasing it is a bit more of a challenge as there hasn’t been an open season since 2016; only Qualifying Life Events (like marriage, divorce, birth or death) qualify you for policy changes.

For most people, additional life insurance that keeps pace with upgrades to property and/or family life is purchased from the larger marketplace, with advice from an expert who can navigate what plans really will work for you.