Basic Life Insurance Coverage Under FEGLI

Through the Federal Employees’ Group Life Insurance (FEGLI) Program*, most federal employees are eligible for a Group Term Life insurance policy. However, life insurance purchased through the FEGLI program is owned by the employer and does not build paid up or cash value.

Federal Employees’ Group Life Insurance comes in four parts:

• Basic Insurance, Extra Benefit
• Option A (Standard Optional Insurance)
• Option B (Additional Optional Insurance)
• Option C (Family Optional Insurance)

Basic Insurance – Employees

• When you get your first federal civilian job, you are covered automatically by Basic insurance.
• Your Basic insurance amount is equal to your annual basic salary rounded up to the next higher $1,000 plus $2,000.

For that coverage, you’ll pay two-thirds of the bi-weekly premiums and the government will pay the rest. The U.S. Postal Service pays the entire cost of USPS employees’ Basic Life Insurance.

• Your share of the Basic insurance premiums is 16 cents biweekly for every $1,000 of coverage or 34.67 cents per month.

If you are under age 45, the Basic Insurance Amount of coverage is increased at no additional cost to you (Extra Benefit). If you are age 35 or younger, the coverage is doubled. However, beginning at age 36 the multiplier used to determine your additional coverage declines by 10 percent per year until it reaches zero at age 45.

Basic Insurance – Retirees

To carry your FEGLI Basic coverage into retirement, you must either have been enrolled in it for the five consecutive years immediately before you retire or from your first opportunity to enroll in the program.

Decisions Upon Retirement

• Decide to keep the full value of the coverage you had on the day you retired
• Allow coverage to decline to half its value
• Let coverage decline to 25% of its value

Reduction in Coverage

• No reduction in basic insurance, keep the full value of your policy with a larger premium payment
• 50% reduction in basic insurance, the policy maintains half its value with a 1% reduction per month until half of the death benefits remain with a moderate premium payment
• 75% reduction in basic insurance, coverage decreases by 2% each month until 25% of the death benefit remains with no premium payment necessary

*Source: U.S. Office of Personnel Management

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