How To Change Your Opm Life Insurance Policy

The Federal Employees' Group Life Insurance (FEGLI) Program is the largest group life insurance program in the world, covering over 4 million federal employees and retirees, as well as many of their family members. The program offers basic life insurance coverage and three optional coverages: Option A-Standard, Option B-Additional, and Option C-Family. While you can cancel or decrease your coverage at any time, you cannot increase your coverage after retiring.

Outside of Open Season, you can only make changes to your enrollment in connection with certain events called qualifying life events (QLEs). These include changes in family status, such as the birth or adoption of a child, or changes in employment status, such as a break in service of more than three days. It's important to note that you typically have up to 60 days after the date of the qualifying life event to make any necessary changes to your OPM life insurance.

Cancelling or decreasing OPM life insurance coverage

You can cancel or decrease your OPM life insurance coverage at any time. However, it is important to note that you cannot increase your coverage after you retire, and any reduction or cancellation of coverage after retirement is permanent.

If you are retiring under the Minimum Retirement Age (MRA) plus 10 provision of FERS, your health care and life insurance coverage will be suspended until your annuity starts, even if it is postponed.

To cancel or decrease your coverage, you may need to submit a request or complete certain forms. You can contact the OPM Retirement Services Support Center for more information and assistance.

Outside of Open Season, you can also cancel or change your enrollment in connection with certain qualifying life events (QLEs), such as a change in family or employment status, or a loss of coverage under another health benefits program. These changes must be made within 60 days of the qualifying event.

Qualifying life events (QLEs)

A qualifying life event (QLE) is a change in your life, either planned or unplanned, that impacts your insurance coverage. QLEs are important when it comes to enrolling in or changing an insurance plan outside of the annual open enrollment period. During the open enrollment period, you can enroll in or change your health insurance, dental insurance, and other insurance benefits through your employee benefits package or the healthcare marketplace.

There are four main types of QLEs:

Changes in your household:

• Getting married or divorced
• Having a baby or adopting a child
• Death of a spouse or dependent

Changes in residence:

• Moving to a different ZIP code or county
• A student moving to or from the place they attend school
• Moving to or from a shelter or other transitional housing

Loss of coverage:

• Losing existing health coverage, including job-based, individual, and student plans
• Losing eligibility for Medicare, Medicaid, or the Children's Health Insurance Program (CHIP)
• Turning 26 and losing coverage through a parent's plan

Other qualifying events:

• Changes in your income that affect the coverage you qualify for
• Gaining membership in a federally recognized tribe or status as an Alaska Native Claims Settlement Act (ANCSA) Corporation shareholder
• Becoming a U.S. citizen
• Leaving incarceration (jail or prison)
• AmeriCorps members starting or ending their service

It's important to note that if you experience a QLE, you must make changes to your insurance coverage within a specific time frame, usually 30 or 60 days before or after the event. After that window, you will likely have to wait until the next open enrollment period or another QLE to make changes to your coverage.

Federal Employees' Group Life Insurance (FEGLI)

Most employees are eligible for FEGLI coverage, which provides group term life insurance. This does not build up any cash value or paid-up value. It consists of Basic life insurance coverage and three additional options. If you are a new Federal employee, you are automatically covered by Basic life insurance, and your payroll office deducts premiums from your paycheck unless you waive the coverage.

The Basic insurance cost is shared between the employee and the Government. The employee pays 2/3 of the total cost, while the Government pays 1/3. The cost of Basic insurance is not affected by the employee's age. On the other hand, the employee pays the full cost of Optional insurance, and this cost depends on their age.

In addition to the Basic coverage, there are three forms of Optional insurance that can be elected: Option A-Standard, Option B-Additional, and Option C-Family. To elect any of the options, you must first have Basic insurance. Unlike Basic, enrollment in Optional insurance is not automatic; you must take action to elect the options.

You can cancel or decrease your coverage at any time. However, you cannot increase your coverage after you retire, and any reduction or cancellation of coverage after retirement is permanent.

Coverage for family members

The Federal Employees' Group Life Insurance (FEGLI) Program covers over 4 million federal employees and retirees, as well as many of their family members.

There are three optional coverages available: Option A-Standard, Option B-Additional, and Option C-Family.

Option C-Family

Option C-Family insurance is from one to five multiples, with each multiple equalling $5,000. This means that in the event of the death of a spouse, the insurance will pay out $5,000 for each multiple of coverage. In the event of the death of an eligible child, the insurance will pay out $2,500 for each multiple of coverage.

Eligible family members are defined as a spouse to whom the insured is still married (not separated or divorced), or a dependent child under the age of 22.

Changing Coverage for Family Members

You can change your optional life insurance coverage at any time. However, you can only decrease or cancel your coverage, not increase it. Any reduction or cancellation of coverage after retirement is permanent.

If you wish to change your coverage, you must do so within 60 days of a qualifying life event (QLE). A QLE that permits a change in enrollment is a change in family status, such as the birth or adoption of a child, the acquisition of a foster child, or the death of a spouse or dependent.

If you have Option C-Family coverage and an eligible family member dies, you must contact the Office of Personnel Management (OPM) to claim the benefit.

Changing premiums

The Federal Employees' Group Life Insurance (FEGLI) Program is the largest group life insurance program in the world, covering over 4 million federal employees and retirees, as well as many of their family members. The cost of Basic insurance is shared between the employee and the government. The employee pays 2/3 of the total cost, while the government pays 1/3. The age of the employee does not affect the cost of Basic insurance, which is a level rate per $1,000 of coverage. This means that the enrollee premium rates are equal for the duration of the coverage period. For example, a younger employee pays the same cost for Basic coverage as a 64-year-old retiree. The rate structure for all enrollees is, however, subject to periodic adjustments based on claims experience.

You can reduce your premiums by reducing your coverage. However, if you reduce your coverage, you cannot increase it again later. Any reduction or cancellation of coverage after you retire is permanent.

Premiums for Optional insurance, on the other hand, are paid in full by the employee and depend on their age. The older the employee, the higher the premium.

Frequently asked questions