Introduction to FEGLI and its benefits

The average person could not answer the question ‘What is FEGLI?’ Even most federal employees don’t fully understand FEGLI, how it works and what the benefits and detractions of the program are. Most believe that FEGLI is a governmental organization that provides insurance to federal and postal employees – the truth is far from it.

Introduction to FEGLI

FEGLI is a group for life insurance for federal employees. FEGLI stands for Federal Employees’ Group Life Insurance. The Office of Personnel Management (OPM) has a contract with a life insurance company to provide federal employees with this life insurance. The affiliated federal insurance company is the Metropolitan life insurance company (MetLife). MetLife provides the life insurance to all federal employees enrolled in FEGLI.

The salient features of FEGLI are that, it does not build up cash value, and unlike other life insurance policies you cannot take a loan against this federal life insurance. There are many different options for FEGLI coverage available to eligible federal employees. It is advised that you should shop around and find the best option that suits your needs.

Benefits of FEGLI

1. Federal Employees who are employed by the federal government are eligible for basic federal life insurance coverage. But they do have the option to waive coverage if they choose. Employees can choose to get optional coverage outside of FEGLI if they want or if they find a cheaper plan elsewhere.

2. FEGLI provides federal employees with an ‘extra benefit’ on their basic life coverage. If the employee is aged 35 or less, this benefit doubles the amount of basic coverage. But it does decrease by 10% each year after the age of 35.

3. You are covered with this federal life insurance even if you take a long leave of absence from work without pay. The leave can be as long as 12 months. Either a 12 month continuous leave, or shorter leaves tied together after some service term. All with no additional cost to you.

4. If a federal employee has a terminal illness, he/she can choose to receive a partial or full lump sum payment from their basic coverage. But keep in mind that if partial payment is taken then you cannot receive the rest of the basic life insurance as a living benefit.

FEGLI coverage is a complicated process and you will need an online resource which can help you better understand the different aspects of this life insurance. Hopefully the information provided above will provide you with a basic idea of what FEGLI is and how you can benefit from it as a federal employee.

Company Introduction provides their customers with low-priced, highly-Rated term life insurance companies to choose from. Using this website for comparison, consumer’s FEGLI Option B savings can be calculated and the can find out how much they can save with a policy from


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