FEGLI Insurance: What Federal Employees Must Know

Did you know that over 4 million federal and postal employees rely on FEGLI insurance for financial peace of mind? As the largest group life insurance program in the world, FEGLI (Federal Employees’ Group Life Insurance) offers essential coverage to help protect your loved ones. But do you know if you’re making the most of your options?

Whether you’re new to federal service or reviewing your benefits, this guide breaks it all down—without the confusing jargon.

What Is FEGLI Insurance?

FEGLI is a life insurance program exclusively available to federal and postal employees. It’s managed by the Office of Personnel Management (OPM) and underwritten by a private insurer, Metropolitan Life Insurance Company (MetLife).

This program offers coverage that pays a death benefit to your designated beneficiaries if you pass away. It’s designed to give your family financial security when they need it most.

What Does FEGLI Cover?

FEGLI includes four main types of coverage, giving you flexibility based on your needs:

1. Basic Coverage
   Automatically included for most employees, this pays a benefit equal to your annual salary (rounded up to the next $1,000) plus $2,000. Your employer subsidizes this coverage, making it affordable.
2. Option A (Standard Coverage)
   Adds $10,000 in additional coverage to your basic insurance.
3. Option B (Additional Coverage)
   Lets you choose 1 to 5 times your annual salary in extra coverage.
4. Option C (Family Coverage)
   Provides coverage for your spouse and eligible children. You can select up to 5 units, with each unit offering $5,000 for your spouse and $2,500 for each child.

Why Should Federal Employees Consider FEGLI?

For federal and postal employees, FEGLI stands out because:

• Convenience: Premiums are deducted from your paycheck, so you don’t have to worry about monthly bills.
• Affordability: Basic coverage is partially subsidized by your agency.
• No Medical Exam: Most employees are automatically approved without a health screening.
• Customizable Options: Add extra coverage for yourself or your family.

Is FEGLI Right for You?

While FEGLI provides valuable coverage, it’s not a one-size-fits-all solution. Here are a few questions to help you decide:

• Do you need more coverage? Basic insurance may not be enough if you have significant financial obligations, like a mortgage or student loans.
• Are you paying for more than you need? If you already have private life insurance, check if FEGLI duplicates coverage.
• What’s your family’s situation? Consider whether additional coverage for your spouse or children would be helpful.

How Much Does FEGLI Cost?

FEGLI premiums are based on your age, salary, and the coverage options you choose. While Basic coverage is affordable for most employees, the cost of optional coverage (like Option B) increases as you age.

Here’s an example of monthly premiums for someone earning $50,000 annually:

Source: OPM.gov

Common Questions About FEGLI

Q: Can I change my FEGLI coverage?
A: Yes! You can adjust your coverage during FEGLI Open Season (the last one was in 2016) or with a qualifying life event like marriage or childbirth.

Q: Does FEGLI include living benefits?
A: FEGLI offers an Accelerated Benefit Option, allowing terminally ill employees to receive part of their coverage while still alive.

Q: What happens to my FEGLI when I retire?
A: Your coverage continues into retirement if you meet eligibility requirements. However, your Basic coverage amount may reduce starting at age 65.

Tips for Making the Most of FEGLI

1. Review Your Designations: Ensure your beneficiaries are up to date, especially after major life events.
2. Compare With Private Insurance: Check if private plans offer better rates or benefits that meet your needs.
3. Understand Your Options: Calculate how much coverage you need using online tools like the FEGLI Calculator.

The Bottom Line

FEGLI insurance is a reliable benefit for federal and postal employees, but it’s essential to understand your options and costs. By reviewing your coverage regularly, you can ensure it aligns with your family’s needs and financial goals.

Call to Action

At The Benefit Coordinators, we specialize in helping federal employees like you understand and optimize your benefits. Contact us today for a free consultation and ensure you’re making the most of your FEGLI coverage.