Haris Ashley
Life insurance OPM is available to federal employees and retirees through the Federal Employees' Group Life Insurance (FEGLI) Program, the largest group life insurance program in the world. Established in 1954, FEGLI covers over 4 million federal employees and retirees, as well as their family members. Most new federal employees are automatically enrolled in Basic life insurance, with premiums deducted from their paychecks unless waived. In addition to Basic insurance, FEGLI offers three forms of Optional insurance: Option A-Standard, Option B-Additional, and Option C-Family. While Basic insurance costs are shared between the employee and the government, employees pay the full cost of Optional insurance, which depends on their age. Employees can change their FEGLI life insurance beneficiaries by submitting a form to their HR office. To file a claim for FEGLI benefits, individuals must submit a claim form, along with a certified copy of the death certificate, to the Office of Federal Employees' Group Life Insurance.
| Characteristics | Values |
|---|---|
| Established | August 29, 1954 |
| Coverage | Over 4 million federal employees, retirees, and their family members |
| Eligibility | Most federal employees |
| Types of Insurance | Basic life insurance and three options: Option A-Standard, Option B-Additional, and Option C-Family |
| Cost of Basic Insurance | Shared between employee (2/3) and government (1/3) |
| Cost of Optional Insurance | Paid in full by the employee; depends on age |
| Reduction in Value | No reduction in the value of Basic insurance |
| Accidental Death and Dismemberment Benefits | Included in Basic insurance; also available with Option A coverage, providing an additional $10,000 |
| Extra Benefit | For employees under 45: double life insurance benefits until age 36, decreasing at 10% per year until age 45 |
| Optional Coverage Amounts | $10,000 (Option A), one to five multiples of pay (Option B), one to five multiples of $5,000/$2,500 for spouse/eligible child (Option C) |
| Retirement | Cannot increase coverage after retirement; can reduce coverage and premiums but cannot increase again later |
| Forms | SF 2818 ("Continuation of Life Insurance As an Annuitant or Compensationer"), SF 2823 ("Designation of Beneficiary"), SF 2817 ("Life Insurance Election") |
| Contact | 1-888-767-6738 |
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What You'll Learn
Federal Employees' Group Life Insurance (FEGLI) Program
The Federal Employees' Group Life Insurance (FEGLI) Program is the largest group life insurance program in the world, covering over 4 million federal employees, retirees, and their family members. The Federal Government established the program on August 29, 1954.
FEGLI provides group term life insurance, which means it does not build up any cash value or paid-up value. It consists of Basic life insurance coverage and three optional forms of insurance. Most employees are eligible for FEGLI coverage, and new federal employees are automatically covered by Basic insurance, with premiums deducted from their paycheck unless they waive the coverage.
The Basic insurance cost is shared between the employee and the Government. The employee pays 2/3 of the total cost, while the Government contributes 1/3. The cost of Basic insurance is not affected by age. However, employees pay the full cost of Optional insurance, and the premium depends on their age.
The three options for Optional insurance are:
- Option A-Standard
- Option B-Additional
- Option C-Family
Employees must have Basic insurance to elect any of the optional coverages. Unlike Basic, enrollment in Optional insurance is not automatic; employees must actively elect the options they want. Employees can reduce or cancel their coverage at any time but cannot increase it after retiring.
The Office of Federal Employees' Group Life Insurance (OFEGLI), a unit of Metropolitan Life Insurance Company, is the administrative office that underwrites the FEGLI Program. It processes and pays claims under the program. Employees can use the FEGLI Calculator to determine the face value, calculate premiums, and understand how different options can change their coverage and premium withholdings over time.
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Basic insurance cost
Basic insurance coverage is provided under the Federal Employees' Group Life Insurance (FEGLI) program. This is a group term life insurance policy, which means it does not accumulate cash value or a paid-up value. The cost of Basic insurance is shared between the government and the employee, with the employee paying 2/3 of the total cost and the government covering the remaining 1/3. This is unlike the Optional insurance coverage, where the employee pays the full cost.
The FEGLI Basic insurance premium is a level rate per $1,000 of coverage. This means that the premium rate is the same for each enrollee in the group policy, regardless of age or health status. As a result, younger employees may pay a comparatively higher premium than they would with coverage based, in part, on age. However, younger employees are covered by an additional Basic insurance provision called the Extra Benefit, which doubles the amount of Basic insurance payable at no extra cost for enrollees aged 35 or younger. From the age of 36, the Extra Benefit decreases by 10% each year until the age of 45, after which it no longer applies.
The premium for Basic insurance is withheld from the annuity of retirees, at the same regular Basic premium rate paid by active employees, until the age of 65. This rate is $0.3250 per month per $1,000 of coverage. After the age of 65, Basic life insurance is free, although there is an additional premium for those who choose the 50% Reduction or No Reduction options. This premium continues for life, or until the individual changes their election or cancels their coverage.
It is important to note that if you retired before December 9, 1980, your basic life insurance is reduced by 2% of the face value each month, starting with the second month after retirement. This reduction continues until your basic life insurance reaches 25% of the face value, at which point it is free of charge.
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Optional insurance
The Federal Employees' Group Life Insurance (FEGLI) Program is the world's largest group life insurance program, covering over 4 million federal employees, retirees, and their family members. Most federal employees are eligible for FEGLI coverage, which provides group term life insurance.
Basic life insurance coverage is included for new federal employees by default, with premiums deducted from their paychecks unless they waive this coverage. On top of this, there are three forms of optional insurance that can be elected: Option A-Standard, Option B-Additional, and Option C-Family. It is important to note that enrollment in optional insurance is not automatic and requires explicit action from the employee.
Option A-Standard provides additional coverage of $10,000, which doubles in the event of accidental death. Option B-Additional offers one to five multiples of the employee's pay, providing greater flexibility in the amount of coverage desired. Option C-Family, on the other hand, insures an employee's eligible family members. Each multiple under this option is worth $5,000 upon the death of a spouse and $2,500 upon the death of an eligible child.
The cost of basic insurance is shared between the employee and the government, with the employee paying 2/3 and the government contributing 1/3. However, for optional insurance, the employee pays the full cost, and the amount depends on their age. Employees can use the FEGLI Calculator to determine the face value, calculate premiums, and understand how different options can impact their coverage and premium withholdings over time.
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Retirement
Life insurance is an important consideration when planning for retirement. The Federal Government established the Federal Employees' Group Life Insurance (FEGLI) Program in 1954, which now covers over 4 million federal employees, retirees, and their families. This program is administered by the Office of Federal Employees' Group Life Insurance (OFEGLI), a private entity contracted by the Federal Government.
Most federal employees are eligible for FEGLI coverage, which provides group term life insurance. New federal employees are typically automatically covered by Basic life insurance, with premiums deducted from their paychecks unless coverage is waived. Basic life insurance coverage is a prerequisite for the three forms of Optional insurance available: Option A-Standard, Option B-Additional, and Option C-Family. Enrollment in Optional insurance is not automatic, and employees must take action to elect their desired options.
For those approaching retirement, it's important to note that you cannot increase your coverage after you retire, and any reduction or cancellation of coverage after retirement is permanent. If you are not eligible to continue coverage into retirement, you may be given the opportunity to convert to an individual policy.
To plan for life insurance coverage in retirement, federal employees can utilize the FEGLI Calculator. This tool helps employees understand the face value of different FEGLI coverage options, calculate premiums, and project how their life insurance coverage will change over time into retirement.
In the event of a retired federal employee's death, a life insurance claim can be filed for FEGLI by submitting Form FE-6 or FE-6DEP, along with a certified copy of the death certificate, to the Office of Personnel Management Retirement Operations Center. This process can be initiated by eligible survivors or beneficiaries to access their benefits.
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FEGLI Calculator
The Federal Employees Group Life Insurance (FEGLI) is a term insurance program established by the Federal Government on August 29, 1954. It is the largest group life insurance program in the world, covering over 4 million federal employees, retirees, and their family members. FEGLI provides basic life insurance coverage and three additional options.
The FEGLI Calculator is a tool that helps federal employees and retirees understand their FEGLI coverage and make informed decisions about their life insurance options. It allows users to:
- Determine the face value of various combinations of FEGLI coverage
- Calculate premiums for different coverage options
- See how choosing different options can impact their life insurance and premium withholdings
- Understand how FEGLI coverage will change over time during retirement
Here's how the FEGLI Calculator can help:
- Determining the Face Value of Coverage: The calculator allows users to input their coverage choices and see the corresponding face value. This helps individuals understand the financial protection provided by their FEGLI coverage.
- Calculating Premiums: Users can calculate the cost of their FEGLI coverage, including both the basic and optional insurance options. The calculator takes into account factors such as age and the chosen coverage level to determine the total premium.
- Comparing Coverage Options: By inputting different combinations of basic and optional insurance, users can compare how their coverage and premium withholdings change. This enables individuals to make informed decisions about their level of coverage and the associated costs.
- Understanding Retirement Impact: For those approaching retirement, the calculator can illustrate how their FEGLI coverage will evolve over time. This includes understanding the changes in coverage and premiums during retirement, ensuring individuals can plan for their life insurance needs in their retirement years.
It is important to note that FEGLI coverage and premiums may change over time, and individuals should stay updated with the latest information provided by the Office of Personnel Management (OPM) and seek guidance from their Benefits Specialist when making decisions about their life insurance choices.
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Frequently asked questions
The Federal Government established the Federal Employees' Group Life Insurance (FEGLI) Program 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.
The cost of Basic insurance is shared between you and the Government. You pay 2/3 of the total cost and the Government pays 1/3. Your age does not affect the cost of Basic insurance.
You can use the FEGLI Calculator to determine the current value of your FEGLI by inputting your current age, salary, and type(s) of FEGLI coverage.
To change your FEGLI life insurance beneficiaries, complete the SF2823 form and submit it to your human resources office.
