FEGLI – Federal Life Insurance Living Benefits Guide
FEGLI Living Benefits
One of the things you need to know about the Federal Employees Group Life Insurance program is the availability of FEGLI living benefits.
FEGLI offers a living benefit to federal employees and retirees who are terminally ill with a medical prognosis of less than nine months in life expectancy.
If you happen to be in this unfortunate situation, you should know that there are different rules on how you can claim FEGLI living benefits, depending on whether you are still a federal employee or annuitant already in retirement.
For starters, you should know that the Living Benefit is equal to your FEGLI Basic insurance cover. Current federal employees can choose between taking a full or partial living benefit in multiple of $1,000.
Annuitants are only able to take a full living benefit equal to their FEGLI Basic cover. Either way, it has no impact on your coverage under FEGLI Options A, B and/or C, for both federal employees and retirees. You will continue to pay premiums for any optional components of FEGLI that you have signed up for.
The FEGLI Basic premium deduction obviously depends on whether you are still a federal employee and if you opted for full or partial living benefits. The OPM will stop deducting premiums from the annuities of annuitants who opt to take living benefits. For active federal employees, the amount of premium still being deducted depends on how big an amount in living benefits you have opted for.
If you have already assigned your life insurance, neither you nor the person the policy is assigned to may seek living benefits.
How to Apply For FEGLI Living Benefits
The FEGLI Living Benefits application must be made to the Office of Federal Employees Group Life Insurance (OFEGLI), or contact a CompareFEGLI.com expert for help with any questions you may have.