Orlando Harmon
Life insurance is a financial safety net that provides peace of mind and financial protection for individuals and their loved ones. In the context of employment, life insurance benefits can play a crucial role in safeguarding employees' well-being and financial stability. In this regard, it is worth exploring whether employees of GS, a well-known company, have the option to purchase life insurance as part of their benefits package. Understanding the availability and specifics of life insurance options through GS is essential for employees to make informed decisions about their financial planning and overall job satisfaction.
| Characteristics | Values |
|---|---|
| Name of Life Insurance Program | Federal Employees' Group Life Insurance (FEGLI) |
| Date Established | August 29, 1954 |
| Number of Federal Employees and Retirees Covered | Over 4 million |
| Number of Family Members Covered | Many |
| Type of Insurance | Group term life insurance |
| Cost of Basic Insurance | 2/3 paid by employee, 1/3 paid by government |
| Cost of Optional Insurance | Paid in full by employee |
| Basic Insurance Coverage | Equal to the actual rate of annual basic pay (rounded to the next $1,000) plus $2,000, or $10,000, whichever is greater |
| Extra Benefit for Employees Under Age 45 | Double life insurance benefits until age 36, decreasing at 10% per year until age 45 |
| Options for Additional Coverage | $10,000 (Option A - Standard, which doubles in case of accidental death), and/or one to five multiples of pay (Option B - Additional), and/or Option C - Family, which insures an employee's eligible family members from one to five multiples of coverage, with each multiple equal to $5,000 upon the death of a spouse and $2,500 upon the death of an eligible child |
| Claims Process | Contact the employee's Federal agency to learn whether the employee had coverage under the FEGLI Program; call the Office of Federal Employees' Group Life Insurance (OFEGLI) at 1-800-633-4542 to file a claim |
What You'll Learn
GS employees' life insurance options
Life insurance is an important benefit for employees, and it's something that GS employees can take advantage of. In this article, we'll explore the life insurance options available to GS employees, so you can make informed decisions about your financial protection.
GS Employees and Federal Employees' Group Life Insurance (FEGLI)
The Federal Employees' Group Life Insurance (FEGLI) Program is the largest group life insurance program globally, covering over 4 million federal employees, retirees, and their family members. As a GS employee, you are likely eligible for FEGLI coverage, which provides group term life insurance. This means that it does not accumulate any cash value over time. The FEGLI Program was established in 1954 and is available to most federal employees.
Basic Life Insurance Coverage
As a new GS employee, you are automatically enrolled in Basic Life Insurance coverage unless you choose to waive it. This coverage is effective from your first day of employment. The cost of Basic Life Insurance is shared between you and the government. Specifically, you pay 2/3 of the total cost, while the government contributes 1/3. The amount of Basic Life Insurance coverage is calculated based on your annual basic rate of pay, rounded up to the nearest $1,000, plus an additional $2,000. For example, if your annual salary is $35,260, your coverage would be $38,000 ($36,000 + $2,000).
Optional Insurance Coverage
In addition to Basic Life Insurance, there are three types of Optional Insurance available to GS employees: Option A (standard optional insurance), Option B (additional optional), and Option C (family optional insurance). You must have Basic Life Insurance to be eligible for any of the optional coverages. Unlike Basic, enrollment in Optional Insurance is not automatic; you must actively elect to add this coverage. The cost of Optional Insurance is paid in full by the employee and depends on their age.
Option A (Standard Optional Insurance)
Option A provides an additional $10,000 in coverage. This can be especially useful if you want to ensure your loved ones have extra financial support in the event of your death.
Option B (Additional Optional Insurance)
Option B allows you to increase your coverage by multiples of your annual basic rate of pay. You can choose from 1, 2, 3, 4, or 5 multiples, giving you flexibility based on your financial needs and goals.
Option C (Family Optional Insurance)
Option C is designed to provide coverage for your family members. It insures your spouse for up to 5 multiples of $5,000 and/or your eligible children for up to 5 multiples of $2,5000. This option is valuable if you want to ensure your family has financial protection in the event of your death.
Additional Considerations
While employer-provided life insurance is a great benefit, it's important to remember that it may not be sufficient to meet all your financial needs. You may want to consider purchasing additional life insurance, especially if you have dependents or significant financial obligations. Additionally, keep in mind that your life insurance coverage through FEGLI may not continue if you leave your job or retire, so reviewing your options regularly is essential.
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Basic life insurance
Most federal employees are automatically enrolled in Basic Life Insurance when they start their jobs, unless they choose to waive it. This insurance is effective from the first day an employee enters a pay and duty status. Basic Life Insurance is calculated based on an employee's annual basic rate of pay, rounded up to the nearest $1,000, plus $2,000. For example, if an employee's annual salary is $35,260, their Basic Life Insurance coverage would be $38,000 ($36,000 plus $2,000). It's important to note that Basic Life Insurance is a term insurance policy and does not accumulate any cash value over time.
The cost of Basic Life Insurance is shared between the employee and the government. Employees pay 2/3 of the total cost, while the government contributes 1/3. Unlike optional insurance, the cost of Basic Life Insurance is not affected by the employee's age.
In addition to Basic Life Insurance, the FEGLI Program offers three types of Optional Insurance: Option A (standard optional insurance), Option B (additional optional), and Option C (family optional insurance). Employees must have Basic Life Insurance to be eligible for any of the optional coverages. While Basic Life Insurance enrollment is automatic, employees must proactively elect any optional coverages they wish to add.
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Optional insurance
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. Most employees are eligible for FEGLI coverage, which provides group term life insurance. This type of insurance does not build up any cash value or paid-up value.
In addition to the Basic coverage, there are three forms of Optional insurance that can be elected: Option A (standard optional insurance), Option B (additional optional), and Option C (family optional insurance). It is important to note that employees must have Basic insurance to elect any of the optional coverages. Enrollment in Optional insurance is not automatic, and employees must take action to select this option.
Option A provides $10,000 of additional coverage. Option B offers coverage in 1, 2, 3, 4, or 5 multiples of an employee's annual basic rate of pay. Option C covers an employee's spouse for up to 5 multiples of $5,000 and/or eligible children for up to 5 multiples of $2,500.
The cost of Basic Life Insurance is shared between the employee and the government, with the employee paying 2/3 of the total cost and the government contributing 1/3. On the other hand, employees pay the full cost of Optional insurance, and the amount depends on their age.
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Cost of basic and optional insurance
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. Most employees are eligible for FEGLI coverage, which provides group term life insurance. This means it does not build up any cash value or paid-up value.
The cost of Basic insurance is shared between the employee and the Government. The employee pays 2/3 of the total cost and the Government pays 1/3. The age of the employee does not affect the cost of Basic insurance. On the other hand, the employee pays the full cost of Optional insurance, and the cost depends on their age.
Basic Life Insurance is equal to the actual rate of annual basic pay (rounded to the next $1,000) plus $2,000, or $10,000, whichever is greater. There is also an Extra Benefit for employees under age 45: double life insurance benefits until age 36, decreasing at 10% per year until age 45, when the extra coverage ends.
There are three types of Optional Insurance available to employees: Option A (standard optional insurance), Option B (additional optional), and Option C (family optional insurance). Option A insurance provides $10,000 of additional coverage. Option B insurance coverage comes in 1, 2, 3, 4, or 5 multiples of the employee's annual basic rate of pay. Option C coverage insures the employee's spouse for up to 5 multiples of $5,000 and/or eligible children for up to 5 multiples of $2,500.
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Additional coverage
While employer-provided life insurance is a good benefit, especially if you have no other life insurance, it may not be sufficient to meet your financial needs. This is especially true if you have dependents, such as a non-working spouse, large family, or special-needs dependents, who rely on your income. In such cases, you may require additional coverage to provide for their needs in the event of your death.
Most employer-provided life insurance plans allow you to increase your coverage as your life events and needs change. You can opt to pay an additional premium amount to increase your basic protection. This is known as "optional insurance" or "supplemental coverage".
There are three types of optional insurance available to employees: Option A (standard optional insurance), Option B (additional optional), and Option C (family optional insurance).
Option A provides an additional $10,000 of coverage. Option B insurance coverage allows you to choose 1, 2, 3, 4, or 5 multiples of your annual basic rate of pay. Option C covers your spouse for up to 5 multiples of $5,000 and/or eligible children for up to 5 multiples of $2,500.
You pay the full cost of optional insurance, and the cost depends on your age. It's important to note that, unlike basic life insurance, enrollment in optional insurance is not automatic – you must take action to elect these options.
In addition to the options provided by your employer, you can also purchase other life insurance policies, such as an individual term life policy or a permanent life policy. Term life insurance offers lower premiums but is only effective for a set period. Whole life policies, a type of permanent life policy, have higher premiums but remain in effect until death and can provide a cash value component.
When deciding whether to purchase additional coverage, it's important to consider your unique financial situation, including your dependents and budget. A common rule of thumb is to have five to ten times your annual salary in coverage.
You may also want to consider the possibility of losing your employer-provided coverage if your job situation changes or if your employer stops offering life insurance as a benefit. By purchasing a separate policy, you can ensure continued coverage regardless of your employment status.
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Frequently asked questions
GS employees are automatically enrolled in Basic Life Insurance unless they choose to waive it. This insurance is effective on the first day of pay and duty status.
Basic Life Insurance is equal to the actual rate of annual basic pay (rounded to the next $1,000) plus $2,000, or $10,000, whichever is greater. The cost of Basic Life Insurance is shared between the employee and the government. The employee pays 2/3 of the total cost and the government pays 1/3.
Federal Employees' Group Life Insurance (FEGLI) is a term insurance policy and has no cash value. It 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.
There are three types of Optional Insurance available to employees: Option A (standard optional insurance), Option B (additional optional), and Option C (family optional insurance).
New employees have 31 days from the date of their appointment to elect additional Optional Insurance or to waive coverage entirely. Employees must be enrolled in Basic Life Insurance in order to elect Optional Insurance.
