What is FEGLI ?
The FEGLI (Federal Employees’ Group Life Insurance Program) price on August 28, 1954. FEGLI is the most extensive group life insurance program in the world, covering over 4 million federal employees and retirees, as well as many of their family members. FEGLI consists of Basic Life Insurance coverage and three additional options; Option A, B, and C.
If you are a postal employee, the cost of FEGLI is 100% covered. If you are any other type of federal employee, the federal government will share the cost with you. Your part of the cost will be deducted from your check every month or pay period unless you waive coverage. FEGLI can get complicated so we suggest you speak to professionals that can help you navigate the system and point you to the right choices for your situation.
Does the Federal Government pay for my FEGLI coverage?
The Federal Government will pay for the entire cost of your FEGLI basic coverage, and any optional coverage is covered by you. If you are any other type of Federal Employee, the Federal Government will pay for 3/4 of the cost of FEGLI Basic and any optional coverage is covered by you.
What should I do to make sure I am making the right decisions with my FEGLI?
Talking with your HR department is a good idea as they can help educate you on the type of benefits you already have, as well as the costs. We also recommend that you speak to a financial professional that has experience and knowledge of how FEGLI works and what alternatives are available. The financial professional that is right for you can help by showing you what other options you have in the private sector, and they can help you decide if it makes sense to change to another policy. Make sure when selecting a financial professional, you are working with a FEGLI expert
Does coverage for FEGLI Basic Life Insurance decrease over time?
FEGLI coverage will stay the same over time as long as the covered employee chooses to keep it this way. Most employees start researching other alternatives to FEGLI when they turn 45, not because the coverage has decreased, but because the coverage gets so expensive that it is prohibitive.
If I change employers, can I retain my FEGLI coverage?
It is very unlikely that you will be able to keep your coverage the same.
Is FEGLI Expensive ?
FEGLI can get expensive during your later years. Since FEGLI does not have any underwriting requirements, healthy employees end up sharing the cost with the not so healthy employees. If you are a relatively healthy individual, it is recommended that you compare the cost of your FEGLI every 5 years after you reach 45.
I am a Federal employee. How do I cancel (waive) or reduce my coverage?
If you are an employee, you can cancel or reduce your FEGLI life insurance at any time by submitting the form inside this link: http://www.opm.gov/forms/pdf_fill/sf2817.pdf to your human resources office.
If you want to reduce life insurance, sign only for the coverage you want to KEEP.
If you want to cancel all life insurance, sign in Box 5.
Exception: if you have assigned your life insurance by transferring ownership to another person or to a company, then you cannot cancel or reduce your Basic, Option A, or Option B coverage.
What does Open Season mean ?
Open Season runs from the Monday of the second full workweek in November through the Monday of the second full workweek in December.
Open season is when you can make sure you have the right benefit coverage for you and your family.