Understanding Fegli: Your Guide To Basic Life Insurance

The Federal Employees' Group Life Insurance Program (FEGLI) is a group term life insurance program that was established on August 29, 1954, and is the largest group life insurance program in the world, covering over 4 million federal employees, retirees, and their families. FEGLI offers Basic Life Insurance, which is equal to an employee's annual basic pay, rounded to the next higher $1,000, plus $2,000. For example, if an employee's annual salary is $48,108, their insurance would be rounded to $49,000, plus $2,000, resulting in basic life insurance coverage of $51,000. Employees in eligible positions are automatically enrolled in Basic Life Insurance unless they choose to waive it, and it is effective on the first day of pay and duty status. 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 paying 1/3.

Federal Employees' Group Life Insurance (FEGLI) Program

The Federal Employees' Group Life Insurance (FEGLI) Program is a group term life insurance policy that was established on August 29, 1954, and is the largest group life insurance program in the world, covering over 4 million federal employees, retirees, and their family members.

Most employees in eligible positions are automatically enrolled in FEGLI's Basic Life Insurance unless they choose to waive it. This insurance is effective from the first day of pay and duty status and is equal to the annual basic pay rate, rounded up to the nearest $1,000, plus $2,000. For example, if your annual salary is $48,108, your insurance would be rounded to $49,000, then have $2,000 added, making your basic life insurance coverage $51,000. The cost of Basic Insurance is shared between the employee and the government, with the employee paying 2/3 of the total cost and the government paying 1/3. Age does not affect the cost of Basic Insurance.

In addition to Basic Life Insurance, there are three types of Optional Insurance available: Option A (Standard), Option B (Additional), and Option C (Family). Option A provides an additional $10,000 of coverage. Option B provides coverage in the amount of one to five times the employee's annual basic pay (after rounding up to the next $1,000). Option C provides coverage for an employee's spouse and eligible dependent children in multiples of one to five, with each multiple equal to $5,000 for the spouse and $2,500 for each eligible child. Employees must have Basic Insurance to elect any of the Optional Insurance plans, and they must specifically elect the types of optional insurance they wish to carry within 31 days of becoming eligible. The employee pays the full cost of Optional Insurance, which depends on the employee's age.

The FEGLI Calculator is an online tool that allows enrollees to determine the face value of various combinations of FEGLI coverage, calculate premiums for different coverage combinations, and see how choosing different options can change the amount of life insurance and the premium withholdings.

Automatic enrolment for new employees

Federal Employees' Group Life Insurance (FEGLI) is a Term Insurance program that became effective on August 29, 1954. 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.

Eligible employees are automatically enrolled in Basic Life Insurance, which is effective on the first day they enter a pay and duty status unless they waive this coverage before the end of their first pay period. Basic Life Insurance is equal to the employee's annual basic pay, rounded to the next $1,000, plus $2,000. For example, if an employee's annual salary is $48,108, the insurance would first be rounded to $49,000, then have $2,000 added, making their basic life insurance coverage $51,000.

The cost of Basic Insurance is shared between the employee and the government. Employees pay $0.16 biweekly for each $1,000 of coverage, which equates to 2/3 of the total cost, while the government pays the remaining 1/3. If an employee is paid on a different basis than biweekly, the amount withheld from their pay must be prorated and adjusted to the nearest cent.

New employees are automatically covered by Basic Life Insurance and must take action to waive this coverage if they do not want it. To waive Basic Life Insurance coverage, new employees must complete an SF-2817, Life Insurance Election form before the end of their first pay period. If they do not waive this coverage, their payroll office will deduct premiums from their paycheck.

In addition to Basic Life Insurance, there are three forms of Optional Insurance that employees can elect to enrol in: Option A (Standard), Option B (Additional), and Option C (Family). However, it is important to note that employees must have Basic Insurance in order to elect any of the Optional Insurance options. Unlike Basic Insurance, enrolment in Optional Insurance is not automatic, and employees must take action to elect these options.

Calculating Basic Life Insurance coverage

The Federal Employees' Group Life Insurance Program (FEGLI) offers Basic Life Insurance that is equal to your annual basic pay, rounded to the next higher $1,000, plus $2,000. For example, if your annual salary is $48,108, your insurance would first be rounded to $49,000, then have $2,000 added, making your basic life insurance coverage $51,000.

Basic life insurance is calculated based on your annual basic rate of pay, rounded up to the nearest $1,000, plus $2,000. For example, if your annual salary is $35,260, your basic life insurance coverage would be $38,000 ($35,260 rounded up to $36,000 plus $2,000).

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. Your age does not affect the cost of Basic Life Insurance.

You can also get three types of optional insurance: Option A, Standard, which provides an additional $10,000 of coverage; Option B, Additional, which comes in 1, 2, 3, 4, or 5 multiples of your annual basic pay (after rounding up to the next $1,000); and Option C, Family, which provides coverage for your spouse and eligible dependent children in multiples from one to five. Each multiple is equal to $5,000 for your spouse and $2,500 for each eligible child.

You must have Basic Life Insurance to elect any of the optional coverages. The cost of optional insurance is paid in full by the employee and depends on their age.

Optional insurance types

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. It was established on August 29, 1954 and offers Basic Life Insurance and three types of optional insurance.

As mentioned, there are three types of optional insurance available to employees: Option A (Standard), Option B (Additional), and Option C (Family).

Option A (Standard)

Option A provides an additional $10,000 of coverage, which doubles in the case of accidental death. This option also includes Accidental Dismemberment coverage, which provides benefits if the insured loses a limb or their eyesight.

Option B (Additional)

Option B offers additional coverage in the amount of one to five times the employee's annual basic pay, rounded up to the next $1,000. This option allows employees to increase their coverage based on their salary, providing higher benefits in the event of their death.

Option C (Family)

Option C is designed to provide coverage for an employee's spouse and eligible dependent children. It offers multiples of coverage, with each multiple providing $5,000 for the spouse and $2,500 for each eligible child. This option ensures that an employee's family is financially protected in the event of their death.

It is important to note that employees must have Basic Life Insurance to be eligible for any of the optional insurance types. The cost of Basic Life Insurance is shared between the employee and the government, while employees pay the full cost of Optional Insurance, which is dependent on their age.

Claiming benefits

Federal Employees' Group Life Insurance (FEGLI) is a program that offers Basic Life Insurance coverage to federal employees. This insurance is equal to the employee's annual basic pay, rounded to the next higher $1,000, plus $2,000. In most cases, new federal employees are automatically enrolled in Basic Life Insurance, and premiums are deducted from their paychecks unless they choose to waive coverage.

The process of claiming FEGLI benefits depends on the specific situation and the category of the person who has passed away. Here is a detailed guide on claiming benefits under the FEGLI program:

If you are a surviving family member of a deceased federal employee or annuitant, you need to follow these steps:

• Report the death: Contact the human resources office of the employee's federal agency or the OPM Retirement Operations Center, depending on the situation. Be prepared to provide the full name, Social Security number, and date of death of the deceased.
• Receive and complete the claim form: The agency or OPM will send you the life insurance claim form, typically Form FE-6 for employees or annuitants. You can also download and complete the form ahead of time from the official website.
• Submit the claim form and required documents: Send the completed claim form, along with a certified copy of the death certificate, to the designated address. For employees, submit the form to the employing agency. For annuitants, send it to the Office of Federal Employees' Group Life Insurance (OFEGLI).
• Contact OFEGLI: If necessary, call OFEGLI at 1-800-633-4542 for assistance and to check the status of your claim.

If you are an employee or annuitant claiming benefits for the death of a family member, follow these steps:

• Report the death: Notify the human resources office of the employee's agency or the OPM Retirement Operations Center, depending on the situation. Provide the necessary information, including the employee's full name, Social Security number, and date of death.
• Receive and complete the claim form: The agency or OPM will send you the appropriate claim form, typically Form FE-6DEP for family members. You can also download and complete the form in advance.
• Submit the claim form and required documents: Send the completed claim form, FE-6DEP, along with a certified copy of the death certificate, to the Office of Personnel Management Retirement Operations Center.
• Contact OFEGLI for assistance: If needed, call OFEGLI at 1-800-633-4542 for guidance or to check the status of your claim.

Additional Considerations:

• Timing: It is important to note that federal employee group life insurance death benefits should be paid by the insurance company within 30 days of submitting the claim form and all necessary supporting documents.
• Denied or Delayed Claims: If your FEGLI claim has been denied or delayed, it is recommended to consult a FEGLI attorney to understand the specific reason for the denial or delay and explore possible appeals or legal options.

Frequently asked questions