Federal Employees Group Life Insurance (F.E.G.L.I.)
What is FEGLI?
The Federal Employees' Group Life Insurance (FEGLI) program was established by the Federal Government in 1954. It is the largest group life insurance program in the world, covering active Federal employees, retirees, and many of their family members.
FEGLI is group term life insurance, meaning it does not build cash values or paid-up insurance values.
Basic Insurance Coverage
Most Federal employees are eligible for the FEGLI program, which includes Basic Life Insurance coverage and three forms of optional coverage. If eligible, you are automatically covered by Basic Insurance when hired, and coverage continues, with premiums deducted from your paycheck, until you waive the coverage. The amount of coverage Basic Insurance provides is equal to your annual basic pay, rounded up to the nearest $1,000, plus an additional $2,000.
The cost of Basic Insurance coverage is shared by You, the Federal employee, and the Federal Government. You pay 2/3 of the total premium cost and the Government pays 1/3. Your age does not affect the Basic premium cost, but new premium rates are set periodically.
Extra Benefit coverage is automatically included for Federal employees age 35 and younger, at no additional cost. The Extra Benefit doubles the amount of Basic insurance coverage through age 35.
Starting on your 36th birthday Extra Benefit coverage decreases by 10% annually until you reach age 45, when it terminates entirely, leaving only your Basic Insurance amount.
Additional Coverage Options
For complete details, visit www.opm.gov
The Federal Employees' Group Life Insurance (FEGLI) program was established by the Federal Government in 1954. It is the largest group life insurance program in the world, covering active Federal employees, retirees, and many of their family members.
FEGLI is group term life insurance, meaning it does not build cash values or paid-up insurance values.
Basic Insurance Coverage
Most Federal employees are eligible for the FEGLI program, which includes Basic Life Insurance coverage and three forms of optional coverage. If eligible, you are automatically covered by Basic Insurance when hired, and coverage continues, with premiums deducted from your paycheck, until you waive the coverage. The amount of coverage Basic Insurance provides is equal to your annual basic pay, rounded up to the nearest $1,000, plus an additional $2,000.
The cost of Basic Insurance coverage is shared by You, the Federal employee, and the Federal Government. You pay 2/3 of the total premium cost and the Government pays 1/3. Your age does not affect the Basic premium cost, but new premium rates are set periodically.
Extra Benefit coverage is automatically included for Federal employees age 35 and younger, at no additional cost. The Extra Benefit doubles the amount of Basic insurance coverage through age 35.
Starting on your 36th birthday Extra Benefit coverage decreases by 10% annually until you reach age 45, when it terminates entirely, leaving only your Basic Insurance amount.
Additional Coverage Options
- Option A - Standard: offers an additional $10,000 of coverage. You pay 100% of the premium, which increases as you age (5-year age groups). Option A can be continued into retirement.
- Option B - Additional: offers additional coverage in an amount equal to 1, 2, 3, 4, or 5 times your basic pay, rounded up to the next $1,000. You pay 100% of the premium, which increases as you age (5-year age groups). Option B can be continued into retirement.
- Option C - Family: provides life insurance coverage for your spouse and eligible dependent children. If you elect Option C, all eligible family members are automatically covered. Coverage starts at $5,000 for your spouse and $2,500 for each eligible dependent child. These amounts can be increased by up to 5 multiples (eg, spouse coverage: 1- $5,000; 2- $10,000, up to 3- $25,000). You pay 100% of the premium, which increases as you age (5-year age groups). Option C can be continued into retirement.
For complete details, visit www.opm.gov
- Option A 2016 Rates
- Option B 2016 Rates
- Option C 2016 Rates
- ONLINE CALCULATOR
BELOW WE PROVIDE A DEEPER UNDERSTANDING
The Federal Employees’ Group Life Insurance, or FEGLI, is the largest group life insurance program in the world. If you are a new federal employee, you are automatically covered by basic life insurance.
For basic coverage, your age does not affect the cost of insurance, and you share the cost with the government: You pay two-thirds of the total cost while the government pays one-third.
If you add any of the three forms of optional insurance, you pay the full cost and your age does determine the cost. The Office of Personnel Management goes into detail about each option available to you, and also includes a table to help you determine how much FEGLI will cost based on your age.
Basic Coverage
Optional Coverage
In addition to the Basic, there are three forms of Optional insurance you can elect. You must have Basic insurance in order to elect any of the options. Unlike Basic, enrollment in Optional insurance is not automatic — you must take action to elect the options.
Option A
Option A is the simplest form of optional life insurance. It provides your beneficiaries with a $10,000 death benefit in the event of your death.
Option B
Option B allows you to choose 1, 2, 3, 4, or 5 multiples of your base pay (rounded up). For example, if you make $50,000/year and elect to have 5 times your base pay, your Option B life insurance will pay $250,000 upon your death. The cost of Option B increases with your age.
Option C
Option C is for families, providing coverage for your spouse and eligible dependent children. Under Option C, all of your eligible family members are automatically covered. The coverage amount is determined in units – each unit represents $5,000 for your spouse and $2,500 for each dependent child. For example, if you elect 3 units and your spouse dies, you would receive $15,000 (3 x $5,000). If one of your eligible dependent children dies, you would receive $7,500 (3 x $2,500). The number of multiples you elect applies to all of your eligible family members. In other words, you cannot elect 2 units for your spouse and 3 units for your children. Furthermore, a child’s eligibility for Option C benefits ends once he/she reaches age 22, unless he/she is incapable of self-support because of a mental or physical disability that existed before the child reached age 22.
How can we help?
Not exactly what you had in mind for life insurance? Us neither. Sometimes, FEGLI is not your most cost effective option for life insurance. Sometimes, it’s smarter to cancel your FEGLI and try an alternative insurance plan, one that has fixed benefits and fixed premiums. The cost of your FEGLI goes up every five years—and that’s something probably no one has told you.
Sure it’s relatively inexpensive as a younger employee. But as you age, paying for federal life insurance can cut into your bottom line, and into your ability to save for a distinguished retirement. The years when you need FEGLI the most, it can become prohibitively expensive. We can provide leads to commercial alternatives for you. We will analyze your pay and your current FEGLI benefits, and in short time, we will know what direction to lead you.
The Federal Employees’ Group Life Insurance, or FEGLI, is the largest group life insurance program in the world. If you are a new federal employee, you are automatically covered by basic life insurance.
For basic coverage, your age does not affect the cost of insurance, and you share the cost with the government: You pay two-thirds of the total cost while the government pays one-third.
If you add any of the three forms of optional insurance, you pay the full cost and your age does determine the cost. The Office of Personnel Management goes into detail about each option available to you, and also includes a table to help you determine how much FEGLI will cost based on your age.
Basic Coverage
- Basic coverage is pretty straightforward – it is equal to your base pay (rounded up) plus $2,000.
- For example, if you make $42,400/year, your basic coverage would be $45,000.
- Explanation: Base Pay = $42,400 Base Pay rounded up = $43,000 $43,000 + $2,000 = $45,000
Optional Coverage
In addition to the Basic, there are three forms of Optional insurance you can elect. You must have Basic insurance in order to elect any of the options. Unlike Basic, enrollment in Optional insurance is not automatic — you must take action to elect the options.
Option A
Option A is the simplest form of optional life insurance. It provides your beneficiaries with a $10,000 death benefit in the event of your death.
Option B
Option B allows you to choose 1, 2, 3, 4, or 5 multiples of your base pay (rounded up). For example, if you make $50,000/year and elect to have 5 times your base pay, your Option B life insurance will pay $250,000 upon your death. The cost of Option B increases with your age.
Option C
Option C is for families, providing coverage for your spouse and eligible dependent children. Under Option C, all of your eligible family members are automatically covered. The coverage amount is determined in units – each unit represents $5,000 for your spouse and $2,500 for each dependent child. For example, if you elect 3 units and your spouse dies, you would receive $15,000 (3 x $5,000). If one of your eligible dependent children dies, you would receive $7,500 (3 x $2,500). The number of multiples you elect applies to all of your eligible family members. In other words, you cannot elect 2 units for your spouse and 3 units for your children. Furthermore, a child’s eligibility for Option C benefits ends once he/she reaches age 22, unless he/she is incapable of self-support because of a mental or physical disability that existed before the child reached age 22.
How can we help?
Not exactly what you had in mind for life insurance? Us neither. Sometimes, FEGLI is not your most cost effective option for life insurance. Sometimes, it’s smarter to cancel your FEGLI and try an alternative insurance plan, one that has fixed benefits and fixed premiums. The cost of your FEGLI goes up every five years—and that’s something probably no one has told you.
Sure it’s relatively inexpensive as a younger employee. But as you age, paying for federal life insurance can cut into your bottom line, and into your ability to save for a distinguished retirement. The years when you need FEGLI the most, it can become prohibitively expensive. We can provide leads to commercial alternatives for you. We will analyze your pay and your current FEGLI benefits, and in short time, we will know what direction to lead you.
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