Federal and postal employees have unique life insurance needs, and the Federal Employees’ Group Life Insurance (FEGLI) program is designed to meet them. This guide explores FEGLI coverage options and provides insights into choosing the best coverage for your family’s future.

What Is the FEGLI Program?

The FEGLI program is a group term life insurance program exclusively for federal employees and postal workers. It offers term life insurance, providing pure protection without cash value accumulation. Most employees are automatically enrolled in Basic Life Insurance Coverage when they begin federal service.

FEGLI Basic Life Insurance Coverage

Basic life insurance coverage is the cornerstone of the FEGLI insurance program. It includes:

• Coverage equal to your annual salary, rounded up to the nearest $1,000, plus $2,000.
• A cost-sharing arrangement where the government pays one-third of the premium, and employees cover two-thirds.
• Fixed premiums unaffected by age.

For example, if your salary is $47,500, your Basic coverage totals $50,000.

Optional Coverage for Employees

Federal employees can customize their protection through three optional insurance choices:

1. Option A – Standard Insurance: Adds $10,000 in coverage. Employees pay full premiums, which increase in five-year age bands.
2. Option B – Additional Insurance: Lets employees choose coverage equal to one to five times their annual salary. For example, with a $50,000 salary and three multiples, coverage equals $150,000. FEGLI premiums depend on age and selected multiples.
3. Option C – Family Insurance: Covers a spouse and eligible dependent children. Employees can select up to five multiples, where each multiple equals $5,000 for a spouse and $2,500 per child. Premiums increase with age.

Accidental Death and Dismemberment (AD&D) Benefits

Basic coverage and Option A include AD&D benefits at no extra cost. These benefits provide additional financial protection for accidental death or certain injuries. However, Options B and C do not include AD&D coverage.

Costs and FEGLI Premiums

While the government subsidizes Basic coverage, federal employees pay the full cost for optional coverage. FEGLI premiums for optional insurance increase with age, typically in five-year age bands. Regularly reviewing premiums ensures your coverage aligns with your budget and financial goals.

Adjusting Your FEGLI Coverage

Employees can modify their FEGLI insurance under specific circumstances:

• Open Seasons: Rare periods allowing coverage changes without a medical exam.
• Qualifying Life Events: Marriage, divorce, or the birth of a child may permit changes.
• Medical Exam: Employees can apply for higher coverage by undergoing a physical exam.

FEGLI Coverage in Retirement

Understanding how FEGLI coverage options evolve in retirement is crucial:

• Basic Coverage: Employees can continue Basic life insurance into retirement, with options to reduce coverage after age 65 to lower or eliminate premiums.
• Optional Coverage: Options A, B, and C may also continue, but with higher premiums and reduced coverage over time.

Resources for Federal Employees

Federal employees group resources include tools like the Office of Personnel Management’s (OPM) FEGLI Calculator. This tool helps estimate premiums, compare options, and decide on the most suitable group life insurance program for your needs.

Final Thoughts on FEGLI Programs

Choosing the right FEGLI coverage options depends on your financial situation, family needs, and future plans. Regular reviews ensure your FEGLI insurance aligns with life changes. For more support, visit the Federal Disability Coverage website to access resources tailored for federal employees.