Rights of Insured and Assignee After FEGLI Assignment

One of the things you can do as after being enrolled into the Federal Employees Group Life Insurance (FEGLI) program is to make an assignment. The insured or assignee can make multiple assignments, with specified percentages or fractions of the insurance to go to each assignee.

Note that you cannot assign dollar amounts, and the fractions must add up to 1.0 or the percentages assigned must add up to 100 percent.

One of the aspects that many insureds who have made a FEGLI assignment neglect to find out is about what rights they retain after assignment, and what rights are transferred to the assignees.

Here’s a brief overview of how this works.

 Rights of the Insured After FEGLI Assignment 

You can obviously continue family coverage through Option C. But the main right that insureds retain after assignment is the ability to change coverage, whenever possible. This means that the insured can still change coverage amounts during a FEGLI open season or by providing evidence of a qualifying life event (QLE). Note that any new insurance you opt for other than Option C will get tucked into the assignment.

As the insured, you also retain the right to elect for a post-retirement 75 percent reduction, and the post-retirement reductions for Option B and Option C as well.

Rights of the Assignee After FEGLI Assignment

After assignment, the assignee has the right to reduce or cancel the assigned part of the insurance coverage. Assignees can also designate and change beneficiaries, reassign the insurance to other assignees, and convert to a private policy when FEGLI terminates after the original insured separates from federal employment.

The assignee may also change a post-65 reduction election for Basic insurance to the maximum 75 percent reduction, and also change the no reduction post-65 reduction elections for Option B to full reduction.