Understanding FEGLI Option B and Your other FEGLI Options?
Federal Employee Group Life Insursance (FEGLI) Options
When the Federal Government’s Life Insurance program (FEGLI) started in 1954, only basic coverage was provided to federal employees. Over the years, there were many changes made to the coverage that FEGLI provides.
Now FEGLI, along with the basic life insurance, offers 3 additional “FEGLI Options.” A federal employee, enrolled in the FEGLI, has the ability to include the optional life insurance coverage to his/her plan. At any point in time an employee wants to cancel these plans they can do so. The employees no longer have to wait for the FEGLI open season to make changes in their coverage plan. If they have not waived their federal life insurance, they can make any changes to the insurance plan that they want at any time.
FEGLI Option A (Standard)
The basic insurance comes with a standard compensation amount. Before FEGLI option A, an employee could increase the $10,000 amount. After this federal life insurance option was introduced, there was no need for the amount to be greater than the standard compensation amount. The only people with higher amount with FEGLI option A are the employees who have retired, who had the higher amount in their FEGLI Option A before the maximum was removed in the 1980s.
You can elect to add FEGLI Option B coverage to your life insurance plan. It gives an insurance amount up to 5 times of your annual basic paycheck. But the costs of the premiums increase with your age. After the age of 35, the Federal Life Insurance Company will increase your premium every 5 years. FEGLI Option B can end up costing you a great deal as you age and you should certainly consider alternatives. You can use the CompareFEGLI.com Option B FEGLI calculator to get an understanding of your current and future FEGLI Rates.
FEGLI Option C (Family)
FEGLI Option C was introduced in 1981 as an alternitive to the other FEGLI options. It gave employees the option of including their family members to their FEGLI insurance coverage. An eligible employee can include up to five multiples in his/her coverage plan. Spouse and eligible children are covered with a standard amount worth $5000 (max $25,000) and $2500 (max 12,500) respectively.
Above are the most simplified details of different FEGLI options. This information can help you get better acquainted with your FEGLI life insurance coverage.