The Federal Employees’ Group Life Insurance (FEGLI) program covers over 4 million federal employees, postal employees, retirees, as well as many of their family members.
FEGLI provides group term life insurance, which most federal employees are eligible for. Coverage from FEGLI consists of Basic life insurance coverage and several options. In most cases, if you are a new federal employee, you are automatically covered by FEGLI Basic life insurance, and your payroll office deducts premiums from your paycheck unless you waive the coverage.
In addition to the Basic coverage, there are several additional options. To enroll in optional coverage, you would need to apply for it. The cost of Basic coverage is not affected by your age. However, you are required to pay the full price of any optional coverage you select, and that does depend on your age.
For Basic coverage, unless you are a postal employee, you will pay two-thirds of the premium while the Government funds the rest. The Office of Federal Employees’ Group Life Insurance (OFEGLI) is the organization that processes and pays FEGLI claims.
Additional Information on FEGLI Coverage:
Minimum Basic FEGLI Insurance Amount
The minimum Basic Insurance coverage is $10,000.
Withholdings for FEGLI Basic
For FEGLI Basic coverage, your share of the cost is 15 cents biweekly for every $1,000 of coverage, withheld for every pay period.
FEGLI Basic Insurance Amount (BIA)
You can figure out your FEGLI Basic Insurance Amount (BIA) by taking your annual rate of basic pay, rounding it up to the next highest thousand and adding $2,000.
Premiums and FEGLI Rates for Different Types of Coverage
Premium rates under the FEGLI program depend on the coverage you elect. For Basic, you can choose full coverage or reductions of 75% or 50%, with the premiums adjusted accordingly. The premium for a 75% reduction in coverage is free beginning the month after you turn 65.
In addition to Basic, there are two options:
- Option A (standard coverage)
- FEGLI Option B (additional coverage) – With premiums based on your age and the amount of coverage.
You can use the FEGLI Calculator, located here, to figure face value and calculate premiums under the various FEGLI options.
Age as a Factor in FEGLI
Employees under age 45 covered by Basic insurance automatically have extra coverage without paying any additional premium. This extra coverage increases the amount of Basic insurance payable at the time of your death before age 45.
However, as you age FEGLI tends to become increasingly more expensive. Take a look at our FEGLI rates page to see just how your age affects your FEGLI costs.