Group Life Insurance: Non-Federal Employees' Options Explored

The Federal Employees' Group Life Insurance (FEGLI) Program is a group term life insurance program for federal employees and retirees, as well as their family members. It is the largest group life insurance program in the world, covering over 4 million federal employees. Most federal employees are eligible for FEGLI coverage and are automatically covered by Basic Life Insurance, with premiums deducted from their paycheck unless they waive the coverage. In addition to the Basic coverage, there are three forms of Optional Insurance that can be elected. Employees must have Basic coverage to elect any of the Optional coverages.

Group life insurance for non-federal employees

Group life insurance is available for federal employees in the US through the Federal Employees' Group Life Insurance (FEGLI) Program. Established in 1954, it is the largest group life insurance program in the world, covering over 4 million federal employees, retirees, and their family members. The program is administered by the Office of Personnel Management (OPM) and the life insurance is provided by the Metropolitan Life Insurance Company (MetLife).

Most federal 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. Basic life insurance coverage is provided as standard, and employees are automatically enrolled unless they choose to waive coverage. Basic coverage is effective on the first day an employee enters a pay and duty status and 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 45, which provides double life insurance benefits until age 36, decreasing by 10% per year until age 45.

In addition to the Basic coverage, there are three forms of Optional insurance that can be elected: Option A, Option B, and Option C. Employees must have Basic insurance to elect any of the optional coverages. Unlike Basic, enrollment in Optional insurance is not automatic—employees must take action to elect the options they want within 60 days of their appointment. Option A provides an additional $10,000 of coverage, while Option B allows for additional coverage of up to five multiples of the employee's basic pay, rounded to the next $1,000. Option C is family coverage, providing $2,500 per eligible child and $5,000 per spouse. Employees can elect up to five multiples of either Option B or C.

The cost of Basic insurance is shared between the employee and the government, with the employee paying 2/3 of the total cost. The government pays the remaining 1/3. The employee pays the full cost of Optional insurance, and the cost depends on their age.

Group term life insurance

Most federal employees are eligible for FEGLI coverage, which is provided by the Metropolitan Life Insurance Company (MetLife). FEGLI provides group term life insurance, which means it does not build up any cash value or paid-up value. The program consists of Basic life insurance coverage and three optional forms of insurance.

New federal employees are automatically covered by Basic life insurance, and premiums are deducted from their paycheck unless they choose to waive the coverage. Basic life insurance is effective on the first day an employee enters a pay and duty status and 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 45, which provides double life insurance benefits until age 36, decreasing by 10% per year until age 45.

In addition to Basic, there are three forms of Optional insurance that can be elected: Option A, Option B, and Option C. Option A provides an additional $10,000 of coverage, which doubles in the case of accidental death. Option B provides additional coverage of one to five multiples of the employee's annual basic pay rate. Option C is family coverage, which insures an employee's spouse and/or eligible children. Each multiple of Option C provides $5,000 of coverage for a spouse and $2,500 for each eligible child.

Employees must have Basic insurance to elect any of the optional coverages, and they must specifically elect the optional coverages they wish to carry within 31 or 60 days of becoming eligible. The cost of Basic insurance is shared between the employee and the government, with the employee paying 2/3 of the total cost. The government pays the remaining 1/3. The employee pays the full cost of Optional insurance, and the cost depends on their age.

FEGLI also offers Accidental Death and Dismemberment Benefits for employees only. This coverage is included in Basic Life Insurance and provides benefits if an employee loses a limb or their eyesight.

Basic life insurance

The Federal Employees' Group Life Insurance (FEGLI) Program is a group term life insurance program for Federal and Postal employees and retirees. The Federal Government established the program on August 29, 1954, and it is now 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. It does not build up any cash value or paid-up value. It consists of Basic life insurance coverage and three additional options. In most cases, if you are a new Federal employee, you are automatically covered by Basic life insurance, and your premiums are deducted from your paycheck unless you waive the coverage.

The Basic Insurance Amount (BIA) 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.

In addition to the Basic coverage, there are three forms of Optional insurance that can be elected. However, you must have Basic insurance to elect any of the options. Unlike Basic, Optional insurance is not automatic; you must take action to elect the options. You must specifically elect the types of optional insurance you wish to carry within 31 or 60 days of becoming eligible.

Optional insurance

The Federal Employees' Group Life Insurance (FEGLI) Program is a group term life insurance program for Federal and Postal employees and retirees. The Office of Personnel Management (OPM) administers the program and sets the premiums. The OPM has a contract with the Metropolitan Life Insurance Company (MetLife) to provide this life insurance.

FEGLI offers Basic Life Insurance and three types of Optional Insurance. All employees in eligible positions are automatically enrolled in Basic Life Insurance unless they choose to waive coverage. Basic Life Insurance is effective on the first day an employee enters a pay and duty status. It 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.

Employees must have Basic coverage to elect any of the three Optional Insurance types. Unlike Basic, enrollment in Optional Insurance is not automatic—employees must take action to elect the options. There are limited opportunities to enroll or elect optional coverage: within 60 days of hire, as a result of a Qualifying Life Event (QLE), within 60 days of an approved Request for Insurance (SF-2822), or during a rare FEGLI Open Season.

The three types of Optional Insurance are:

• Option A (Standard Optional Insurance): provides $10,000 of additional coverage.
• Option B (Additional Optional): coverage comes in 1, 2, 3, 4, or 5 multiples of the employee's annual basic rate of pay.
• Option C (Family Optional Insurance): insures an employee's spouse for up to 5 multiples of $5,000 and/or eligible children for up to 5 multiples of $2,500.

Once an employee elects life insurance coverage, their enrollment automatically continues each year as long as they remain eligible for the program. They do not have to re-enroll each year, but they can decrease their coverage at any time.

Claiming insurance

The Federal Employees' Group Life Insurance (FEGLI) Program is a group term life insurance program for Federal and Postal employees and retirees. The Office of Personnel Management (OPM) administers the Program and sets the premiums. The Metropolitan Life Insurance Company (MetLife) provides the life insurance, and the Office of Federal Employees' Group Life Insurance (OFEGLI) adjudicates the claims.

Most Federal employees are eligible for FEGLI coverage and are automatically covered by Basic Life Insurance unless they choose to waive it. Basic Life Insurance is effective on the first day an employee enters a pay and duty status. 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. Your age does not affect the cost of Basic Insurance.

In addition to Basic, 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). You must have Basic Insurance to elect any of the options. Unlike Basic, enrollment in Optional Insurance is not automatic—you must take action to elect the options.

If a Federal employee or eligible family member has died, you can contact OPM at 1-888-767-6738. OPM will provide the appropriate claim forms and information about any FEGLI coverage. You can also call OFEGLI at 1-800-633-4542 to file a FEGLI claim. If you prefer, you may submit a paper claim form, which can be found on the Healthcare & Insurance site or obtained from any Federal agency.

Frequently asked questions