Canceling Fegli Life Insurance: A Step-By-Step Guide

Federal Employees' Group Life Insurance (FEGLI) is a term insurance product offered to people actively employed by the Federal Government. It is the largest group life insurance program in the world, covering over 4 million Federal employees and retirees, as well as their families. FEGLI provides group term life insurance, which means it does not build up any cash or paid-up value. Employees can reduce or cancel their FEGLI life insurance at any time, without waiting for an open season. To do so, they must submit an SF 2817 form to their human resources office, signing only for the coverage they want to keep. If you are retired, you must write a signed letter to the OPM's Retirement Office, clearly stating the reduction or cancellation you want to make.

Cancelling as an employee vs. retired person

As an employee, you can cancel your Federal Employees Group Life Insurance (FEGLI) coverage at any time by completing the Life Insurance Election Form, SF 2817, and submitting it to your human resources office or benefits contact. If you want to reduce your coverage, sign only for the coverage you want to keep. If you want to cancel all life insurance coverage, sign in Box 5. However, if you have assigned your life insurance to another person or company, you cannot cancel or reduce your Basic, Option A, or Option B coverage.

If you are retired, there is no form to fill out. Instead, you must write a signed letter to the Office of Personnel Management (OPM) Retirement Office, clearly stating the reduction or 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 the following address:

Office of Personnel Management Retirement Operations Center

P.O. Box 45

Boyers, PA 16017-0045

Please note that once you have retired, you cannot enroll in FEGLI, increase your coverage, or restore cancelled coverage.

Additionally, it is important to consider the pros and cons of cancelling FEGLI. FEGLI offers automatic enrollment, no evidence of insurability required, and the ability to increase coverage with Options A, B, and C. However, the coverage is controlled by your employer, and premiums increase significantly with age.

Cancelling Basic insurance

To cancel your Basic FEGLI insurance, you need to complete the Life Insurance Election Form, SF 2817. If you are an employee, submit this form to your human resources office or the Retirement & Employee Benefits Unit (REBU) in your building. Make sure to only sign for the coverage you want to keep. If you want to cancel all life insurance coverage, including Basic, sign in Box 5 of the form.

If you are retired, there is no form to fill out. Instead, you must write a signed letter to the Office of Personnel Management's (OPM) Retirement Office, clearly stating your cancellation request. Include your signature, annuity number (CSA/CSF), or social security number, and your phone number. Send the letter to the following address:

Office of Personnel Management Retirement Operations Center

P.O. Box 45

Boyers, PA 16017-0045

Please note that once you cancel your Basic FEGLI insurance, you cannot enrol again or increase your coverage after retirement. Additionally, cancelling your Basic insurance will also result in the cancellation of all your Optional insurance.

Cancelling Optional insurance

Federal Employees' Group Life Insurance (FEGLI) 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 insurance product, meaning it has no cash value.

FEGLI consists of Basic life insurance coverage and three optional insurance types: Option A, Option B, and Option C. Basic insurance is the default coverage for federal employees, and it is shared between the employee and the government, with the government paying one-third of the premium cost. On the other hand, optional insurance is not automatic and must be applied for. The employee pays the full cost of optional insurance, and the cost increases with age.

If you are an employee, you can cancel your optional FEGLI life insurance at any time by submitting an SF 2817 form to your human resources office, signing only for the coverage you want to keep. If you are retired, there is no form; you must write a signed letter to the Office of Personnel Management's Retirement Office, clearly stating 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 increase your coverage or restore cancelled coverage after you have retired.

Cancelling before/after retirement

Cancelling Federal Employee Group Life Insurance (FEGLI) Before/After Retirement

Cancelling Before Retirement

If you are an employee, you can cancel your FEGLI life insurance at any time without waiting for an open season. To do so, submit an SF 2817 form to your human resources office, signing only for the coverage you want to keep.

Cancelling After Retirement

If you are retired, there is no form; you must write a signed letter to the Office of Personnel Management'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.

Pros and cons of FEGLI

Pros

• Automatic enrollment in Option A coverage at no additional cost.
• No evidence of insurability required.
• Availability to increase coverage with Options B and C.
• Accidental Death and Dismemberment (AD&D) coverage is included in Basic FEGLI insurance and Option A FEGLI.
• Basic FEGLI coverage costs don't increase with age.
• Basic FEGLI coverage can be reduced by 75% at age 65, meaning you pay nothing and your coverage decreases to 25% of its full value.

Cons

• Coverage is controlled by your employer.
• Premiums increase substantially as you age.
• FEGLI is not term or whole life insurance, meaning it can be more expensive than term insurance and lacks the fixed costs and cash value accumulation of whole life insurance.
• You cannot enroll, increase coverage, or restore cancelled coverage after retiring.

Frequently asked questions