FEGLI is the U.S. government’s group life insurance program for eligible federal employees. It pays a tax-free death benefit to your beneficiaries and is administered by the Office of Personnel Management (OPM).
Many federal employees enroll in Basic FEGLI when hired and rarely review it again, even as family needs, debt, and retirement plans change. This guide answers the most common FEGLI questions so you can decide whether your coverage still fits.
What Is FEGLI?
FEGLI is the Federal Employees’ Group Life Insurance Program. It is the largest employer-sponsored group life insurance program in the world.
Eligible new hires are automatically enrolled in Basic FEGLI unless they waive it. OPM administers the program; the insurance carrier handles claims.
Who Is Eligible for FEGLI?
Most federal employees in permanent positions are eligible for FEGLI, including those who work for:
- Most executive branch agencies
- Many independent agencies
- Some legislative and judicial branch organizations
New eligible employees get Basic coverage automatically unless they opt out.
What Does FEGLI Cover?
FEGLI pays a tax-free death benefit to your designated beneficiaries if you die while coverage is in force.
Beneficiaries can use the money for:
- Funeral expenses
- Mortgage or rent
- Everyday living costs
- Childcare
- College expenses
- Debts
- Income replacement
What Are the Types of FEGLI Coverage?
FEGLI has four main coverage options:
Basic is the foundation. Option B is often the most popular optional coverage for growing families. Option C is the only way FEGLI covers a spouse or kids.
How Much Does FEGLI Cost?
FEGLI premiums depend on:
- Your age
- Coverage type (Basic vs. Optional)
- Your salary
- Whether you elect Options A, B, and/or C
Basic premiums are relatively stable and partly paid by the government. Optional premiums rise with age, especially after 50.
That is why many federal employees compare FEGLI Optional costs with private term life insurance as they get older.
Is FEGLI Enough Life Insurance?
It depends on your financial obligations.
FEGLI may be enough if you:
- Are single
- Have little or no debt
- Have no dependents
- Already have substantial savings or other coverage
You may need more coverage if you:
- Have young children
- Have a mortgage
- Have a spouse who relies on your income
- Want to replace several years of income
- Carry other large financial obligations
Many federal employees use FEGLI plus a private policy to close gaps.
Can You Increase FEGLI Coverage Later?
Sometimes, but opportunities are limited.
You can typically change or increase coverage:
- When first hired
- After certain qualifying life events
- During a FEGLI Open Season (when OPM authorizes one)
Open Seasons are rare, so it pays to choose carefully when you first become eligible.
Can You Keep FEGLI After Retirement?
Yes, if you meet the rules.
In general, you must:
- Retire on an immediate annuity, and
- Have been continuously enrolled in FEGLI (or covered as a family member) for the 5 years immediately before retirement, or since your first chance to enroll if that period is shorter
At retirement you may also choose how Basic coverage reduces (or is retained) going forward, subject to program rules.
What happens to Basic FEGLI coverage after age 65?
If you retire with Basic FEGLI and meet the eligibility requirements, your coverage can continue after age 65. What happens next depends on the reduction option you choose.
What are the 75%, 50%, and No Reduction options?
When you reach age 65 (or retire after age 65), you choose how your Basic FEGLI coverage will be handled:
- 75% Reduction: Coverage gradually decreases until it reaches 25% of its original value. Premiums for Basic coverage stop once the reduction begins.
- 50% Reduction: Coverage gradually decreases to 50% of its original value. You continue paying premiums, but at a lower rate than the No Reduction option.
- No Reduction: Your full Basic coverage remains in effect for life. You continue paying the highest Basic FEGLI premiums in retirement.
Can you cancel FEGLI after retirement?
Yes. You can cancel FEGLI coverage in retirement, but the decision is generally permanent.
What happens if you return to federal service?
If you return to an eligible federal position after retiring, your FEGLI coverage may be reinstated or adjusted based on your new employment status.
How Do You Choose a FEGLI Beneficiary?
FEGLI pays according to your most recent valid beneficiary designation.
If you never file one, benefits follow the statutory order of precedence, which may not match your wishes.
Review beneficiaries after major life events:
- Marriage
- Divorce
- Birth or adoption
- Death of a beneficiary
Should You Keep FEGLI or Buy Private Life Insurance?
There is no single right answer. Many employees use both.
FEGLI advantages
- No medical exam when first eligible
- Payroll deduction
- Government-sponsored group program
- Simple enrollment for eligible employees
Private life insurance advantages
- Often lower cost for healthy applicants
- Level premiums available (e.g., term)
- More product choices
- Coverage not tied to federal employment
Compare total cost, health underwriting, and how long you need coverage, especially into retirement.
Common FEGLI Mistakes to Avoid
- Never reviewing coverage after marriage or children
- Forgetting to update beneficiaries
- Assuming FEGLI is always the cheapest option
- Waiting until retirement to learn the rules
- Buying too little, or more than your family needs
FEGLI Quick Answers (FAQ)
-
- What does FEGLI stand for?
Federal Employees’ Group Life Insurance. - Are new federal employees automatically enrolled?
Yes, in Basic coverage, unless they waive it. - Who pays for Basic FEGLI?
You and the government share the cost; the government pays about one-third of the Basic premium. - Can FEGLI cover my spouse?
Only through Option C. - Can I take FEGLI into retirement?
Yes, if you meet the immediate-annuity and continuous-coverage requirements. - Do Optional FEGLI premiums go up with age?
Yes. Optional premiums increase as you get older, especially after age 50. - Is FEGLI mandatory?
- No. Eligible employees are automatically enrolled in Basic coverage but may waive it.
- What does FEGLI stand for?
Review your FEGLI coverage at least once every few years and after major life events such as marriage, the birth of a child, buying a home, or preparing for retirement.
Confirm that your beneficiary designation is current, estimate how much coverage your family would need, and compare FEGLI with private life insurance if your circumstances have changed.
Taking these steps can help ensure your coverage aligns with your financial goals.
To learn more, connect with one of our network advisors today, or join one of our FREE Federal Benefit Workshops.