Don’t Fall For FEGLI Discounts

Don’t Fall For FEGLI Discounts

It’s not uncommon for federal employees and Postal Service workers enrolled in the Federal Employees’ Group Life Insurance (FEGLI) program to shop around for savings or look for other similar life insurance products that give them the same protection and cover at a lower price.

But while doing so, it’s important to know that you cannot get any FEGLI discounts from any other insurer, or buy any supplemental insurance products that will lower your FEGLI rates and premiums.

FEGLI Discounts are unavailable because premiums are calculated based on government-wide rates and factor in your age, salary and individual enrollment in FEGLI options.

Besides, the only two entities that handle your FEGLI policy are the U.S. Office of Personnel Management (OPM) and the Office of Federal Employees’ Group Life Insurance (OFEGLI). The latter is an administrative unit of the Metropolitan Life Insurance Company (MetLife) and has been contracted by OPM to process FEGLI claims.

OPM does not endorse any other life insurance policies or products by private insurance companies. It also has no connection to any supplemental life insurance products that an insurer or insurance agent may market to federal or postal employees.

 Avoid Private Insurers Offering Supplemental Life Insurance With FEGLI Discounts 

OPM has received complaints from federal agencies that some private life insurance companies and sales agents have been marketing products that promise discounts on FEGLI premiums. Some have even claimed to be OPM approved. Regardless of the company or product, this is simply not true.

It is an entirely misleading gimmick perpetrated with the intent of trying to get federal employees to buy life insurance products. Also, note that your federal agency may have a “no solicitation policy” that makes it illegal for an insurance company or its sales agents to attempt to sell their products within the agency’s premises.