Converting FEGLI to Individual Life Insurance After Separation From Federal Service

Fegli Conversion Process

One of the outstanding perks of federal employment is the coverage you get under the Federal Employees Group Life Insurance (FEGLI) program. By the same token, it’s also really helpful to have FEGLI coverage when you separate from federal service and have to convert to an individual policy or policies (for family members).

It’s best to plan ahead for this event, so that you know what kind of options you have for converting to an individual policy, and whether you should make use of this facility.

FEGLI coverage terminates as you leave federal employment, but you get a 31-day extension as free coverage. On the day after this grace period expires, your individual policy will kick in, assuming you opted for the FEGLI conversion.

When you convert to an individual policy, you get all the Basic and FEGLI options you were signed up for. You don’t need to go through another medical exam, although the insurer may ask a few questions. If you refuse to answer, you may still get coverage, but the premium you pay may be higher.

For the record, you or your assignee gets to choose the insurer out of a list of OPM-approved insurers who have already agreed to issue these policies as per the FEGLI contract provisions.

 Tips For Converting FEGLI to Individual Life Insurance

One thing to remember while going through with FEGLI conversion to individual policies is that it won’t provide the features of FEGLI Option C, which offers coverage for family members of federal employees. In this case, your spouse will have to apply separately for an individual policy, and you may likewise apply for individual policies covering eligible children.

Secondly, you might want to shop around and compare life insurance quotes from other insurers, if you are healthy enough to undergo another medical examination. If you are eligible to get the same coverage at lower premiums from another insurer, there’s no reason  why you need to follow the FEGLI conversion process.


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