Questions To Ask Your HR Department about Your FEGLI Coverage

 FEGLI (Federal Employee Group Life Insurance) HR Questions

Should I keep FEGLI basic?

If There Was An Error In FEGLI forms, Which Requires Me To Pay a Premium, Is There a Cap On the Amount That Can Be Charged?

Unfortunately, there isn’t. Your best bet is to consult with your HR department in order to work out a deal with them. There are some instances where the paperwork during the initial phases of employment states a lesser income value than the actual, and the employee has to compensate in order to cover for the lower deductions. Threatening with legal action is another technique, but it should be kept as a last resort due to most employment firms having excellent legal departments.


My Salary Is Too Low For Federal Life Insurance Coverage. Will I Still Be Covered By FEGLI?


If your salary isn’t enough to cover FEGLI employee benefits, you should contact your HR department on your options. Usually, if they cannot see any substantial developments within the next 6 months, you would be presented with two options; to either terminate the insurance coverage altogether or to pay the premium and secure federal employees benefits.
Into Retirement

What Will Happen To My Base FEGLI Coverage Once I Retire?


If you are under 65 years old, you will continue to pay premiums in retirement for your FEGLI Basic and FEGLI Optional insurance at least until you turn 65 unless you elect to cancel your coverage. Your retirement system will withhold the premiums from your annuity each month.

You can choose to keep the basic coverage that you were offered, but you will have to pay a premium in order to continue the federal retirement benefits. Or you can choose from two options; 75% reduction and 50% reduction. The former means your coverage will be deducted by 2% monthly until it reaches 75% of the initial amount. Or you can choose the latter, which will deduct 1% until the amount reaches 50%.

There are different costs associated with maintaining Optional coverage once you retire, but if you are healthy you can almost certainly find less expensive life insurance than what FEGLI offers.

Can I Get Federal Retirement Benefits Through the Five Year Rule By Buying Back Lost Time?

Supposing you have had FEGLI insurance for 4 years and are close to 65 or retirement, but there were some gaps where you opted out, you cannot buy back the time voids to avail the federal retirement benefits.

When do FEGLI Basic and FEGLI Optional insurance reductions begin?

Your FEGLI reductions begin on the 2nd month after your 65th birthday or the beginning of the 2nd month after your retirement date, whichever is later.

Example A:

Donna retired December 31, 2013. She will turn 65 on May 9, 2014. The reduction for Donna’s Basic FEGLI and Optional insurance coverage (if applicable) will start on July 1, 2014.

Example B:

John was 66 years old when he retired on December 19, 2012. Since he was already older than 65 when he retired, John’s FEGLI reductions for both his Basic and his Optional coverage (if applicable) would have started February 1, 2013.

Will I Be Covered For Accidental Death And Dismemberment?

This coverage is not included in retirement.


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