Paul Sanchez
The Federal Employees Group Life Insurance (FEGLI) is the largest group life insurance program in the world, covering over 4 million federal employees, retirees, and their family members. The program, which is managed by the Office of Personnel Management (OPM), offers term life insurance coverage to most federal employees, with some costs split between employees and the government. FEGLI is composed of two main parts: Basic and Optional. Employees may cancel any optional insurance without affecting the basic life or other optional insurance. To enrol in optional FEGLI coverage, one of the routes is to get a physical to determine if the enrollee's health allows them to attain their desired life insurance option(s).
| Characteristics | Values |
|---|---|
| Name of the program | Federal Employees' Group Life Insurance (FEGLI) |
| Type of insurance | Term life insurance |
| Who it covers | Federal employees, retirees, and their family members |
| Number of people covered | Over 4 million |
| Largest group life insurance program | Yes |
| Cost | Split between feds and the government |
| Parts | Basic and Optional |
| Election of optional insurance | Must be done within 60 days of becoming eligible |
| Cancelling optional insurance | Does not affect Basic Life or other Optional insurance |
| Calculating face value, premiums, and insurance amount | Use the FEGLI Calculator |
| Administered by | Office of Federal Employees' Group Life Insurance (OFEGLI) |
| Contract with the Federal Government | Managed by the Office of Personnel Management (OPM) |
| Date of effectiveness | August 29, 1954 |
| Enrollment after waiving FEGLI | Wait one year and undergo a physical |
| Enrollment eligibility | Determined by ABC-C |
| Reconsideration | Allowed when enrollment is denied |
Explore related products
What You'll Learn
Eligibility requirements for FEGLI
The Federal Employees Group Life Insurance (FEGLI) program is a term life insurance coverage option available to most federal employees, with some costs split between employees and the government. The FEGLI program covers almost all members of the federal government's civilian workforce, including military service members.
There are, however, some exceptions to eligibility. The three categories of employees employed by the US federal government who are not eligible for FEGLI are:
- Feds employed by corporations overseen by the Farm Credit Administration (a subagency of the USDA)
- Temporary positions, such as seasonal USPS employees who only work during the holidays
- Overseas teachers who receive paychecks from the Department of Defense (DoD)
Additionally, there are special provisions for individuals in part-time or intermittent employment, temporary appointments, and certain specific positions.
Upon enrolling, federal employees are automatically signed up for Basic insurance on their first day in a pay and duty status, unless they choose to waive coverage. Employees then have 60 days from the date of eligibility to elect Optional insurance coverage.
To maintain FEGLI coverage into retirement, certain eligibility requirements must be met. These include being entitled to an immediate annuity and having been enrolled in FEGLI for at least the preceding 5 years or the full period of service during which FEGLI coverage was available.
Hawaii Employers: Medical Insurance and ACA Compliance
You may want to see also
Explore related products
Enrolling in FEGLI
The Federal Employees' Group Life Insurance (FEGLI) Program is a group term life insurance policy available to most federal employees. It consists of Basic life insurance coverage and three optional forms of insurance.
Eligible employees are typically automatically enrolled in Basic insurance, and payroll offices deduct the premiums from the employee's paycheck unless coverage is waived. Basic insurance costs are shared between the employee and the government, with the employee paying 2/3 of the total cost and the government covering the remaining 1/3.
To elect optional insurance, eligible employees must take action. This is usually done via the SF 2817 (Life Insurance Election) form, although some agencies allow electronic elections. It is important to note that employees must have Basic insurance to elect any of the optional insurance plans. The cost of optional insurance is paid in full by the employee and depends on the employee's age.
New federal employees have 60 days from their entry date to sign up for a health insurance plan. If no election is made within this period, it is considered a declination of coverage, and employees must wait until the next Open Season to enroll.
Outside of an open season, eligible employees can still enroll or increase their FEGLI coverage by taking a physical exam or experiencing a Qualifying Life Event.
The High Cost of Medical Insurance: Why So Expensive?
You may want to see also
Explore related products
Cancelling FEGLI
Federal Employees' Group Life Insurance, or FEGLI, is the largest group life insurance programme in the world, covering over 4 million federal employees, retirees, and their family members. The programme is composed of two main parts: "Basic" and "Optional".
Optional insurance must be specifically elected within 60 days of becoming eligible, and is not automatic. The FEGLI Calculator allows enrollees to determine the face value of various combinations of FEGLI coverage, calculate premiums, and see how choosing different options can change the amount of life insurance and the premium withholdings.
To cancel your FEGLI life insurance, you can submit an SF 2817 to your human resources office, signing only for the coverage you want to keep. If you are retired, you must write a signed letter to OPM's Retirement Office stating clearly the cancellation you want to make. Be sure to include your signature, annuity number (CSA/CSF) or social security number, and your phone number. Send the letter to: Office of Personnel Management Retirement Operations Center P.O. Box 45 Boyers, PA 16017-0045.
Please note that you cannot enrol, increase coverage, or restore cancelled coverage after you have retired. You also cannot cancel or reduce your coverage if you have assigned your life insurance by transferring ownership to another person or company.
Understanding Pre-Tax Medical Insurance Benefits
You may want to see also
Explore related products
FEGLI Calculator
The Federal Employees Group Life Insurance (FEGLI) program is term life insurance coverage available to most federal employees, with some costs split between employees and the government. 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.
The FEGLI program is composed of two main parts: "Basic" and "Optional". The "Basic" insurance option is automatic, whereas "Optional" insurance is not; you must specifically elect the types of "Optional Insurance" you want within 60 days of becoming eligible. Other opportunities to make FEGLI elections include Qualified Life Events or FEGLI Open Season.
The FEGLI Calculator is a tool that allows you to determine the face value of various combinations of FEGLI coverage. You can calculate premiums for the various combinations of coverage and see how choosing different options can change the amount of life insurance and the premium withholdings. The calculator also allows you to see how the life insurance carried into retirement will change over time.
The Office of Federal Employees' Group Life Insurance (OFEGLI), a private entity contracted by the Federal Government, processes and pays claims under the FEGLI Program.
College-Aged Kids: Dropping Them From Your Medical Insurance
You may want to see also
FEGLI physical evaluation
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 their family members. It is a term life insurance program available to most federal employees, with some costs split between employees and the government.
FEGLI consists of two main parts: Basic and Optional. Most employees are automatically covered by Basic insurance, and premiums are deducted from their paychecks unless they waive this coverage. Basic insurance is a prerequisite for any of the Optional insurance plans. Unlike Basic insurance, Optional insurance is not automatic; employees must specifically elect the types of optional insurance they wish to carry within 31 days of becoming eligible.
To enrol in Optional FEGLI coverage, one of the routes is to get a physical evaluation to determine if the enrollee's health allows them to attain their desired life insurance option(s). This is similar to physical evaluations conducted when applying for individual life insurance policies from private insurance providers. If you have previously waived FEGLI coverage, you must wait one year after you have waived the insurance and undergo a physical at your own expense to enrol.
For more information about the FEGLI physical exam, refer to SF 2822 (PDF file). You may also use the FEGLI online calculator to determine the cost and benefit of various optional insurance plans.
Erase Accidents from Insurance Records: What You Need to Know
You may want to see also
Frequently asked questions
The Federal Employees Group Life Insurance (FEGLI) is a program that offers term life insurance coverage to federal employees, retirees, and their family members.
You may send your form to the Army Benefits Center - Civilian (ABC-C). They are responsible for determining initial enrollment eligibility for both you and your eligible family members.
FEGLI is composed of two main parts: Basic and Optional. Basic coverage is required for enrollment in any Optional coverage.
The cost of FEGLI depends on the coverage options you choose. The FEGLI Calculator can help you determine the face value and premiums for various combinations of coverage. It's important to note that the cost of FEGLI increases every five years.
Yes, you may cancel any Optional insurance without affecting the Basic Life or other Optional insurance. A cancellation is effective at the end of the pay period in which a properly completed SF-2817 is received by ABC-C.
