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.
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.
Most federal employees in permanent positions are eligible for FEGLI, including those who work for:
New eligible employees get Basic coverage automatically unless they opt out.
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:
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.
FEGLI premiums depend on:
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.
It depends on your financial obligations.
FEGLI may be enough if you:
You may need more coverage if you:
Many federal employees use FEGLI plus a private policy to close gaps.
Sometimes, but opportunities are limited.
You can typically change or increase coverage:
Open Seasons are rare, so it pays to choose carefully when you first become eligible.
Yes, if you meet the rules.
In general, you must:
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:
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.
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:
There is no single right answer. Many employees use both.
FEGLI advantages
Private life insurance advantages
Compare total cost, health underwriting, and how long you need coverage, especially into retirement.
Common FEGLI Mistakes to Avoid
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.