Federal Employees Group Life Insurance
The Federal Employees’ Group Life Insurance plan (FEGLI) is the largest group life insurance plan in the world. It covers both current and retired federal employees and their families.
The Basic Insurance Amount is the employee’s base salary rounded up to the nearest thousand with an additional $2,000 added on. If an employee is under 35 years old, coverage is automatically doubled at no added cost. At age 36, and every year thereafter to the age of 46, coverage is reduced by 10%. At age 46, the coverage is back to the Basic Insurance Amount.
FEGLI provides three optional coverages. Option A (Standard) allows an employee to add an additional $10,000 to their coverage. Option B (Additional) allows an employee to increase their coverage up to five times their base pay. Option C (Family) provides coverage for an employee’s spouse of $5,000 and each child $2,500. This option can be multiplied up to five times.
Both the employee and the government pay into FEGLI. The employee pays 2/3 of the premiums and the government pays the remaining 1/3.
As an employee’s base pay increases, their coverage amount increases as well as their monthly payment into FEGLI. The FEGLI premium automatically increases at ages 45, 50, 55, 60, every five years until age 80. At retirement, employees can keep their existing coverage, reduce their coverage, or cancel it entirely. Maintaining full coverage under all of the options will involve substantial cost for retirees.
FEGLI is an open enrollment benefit plan and accepts all federal employees, covering them with life insurance. Most new federal employees are automatically enrolled in FEGLI unless they elect to waive coverage.
The optional coverage plans are also available on a guaranteed basis; no medical exams are required for anyone participating.
Because FEGLI is a group program that must accept all employees regardless of any pre-existing medical conditions many non-smoking, healthy employees often find FEGLI has higher premiums than what may be offered by fully-underwritten commercial term life insurance plans.
VEBS has helped thousand of employees find insurance plans from the highest rated companies with the most competative insurance rates. We will help you figure out the true need, pick the right insurance plan for your needs. We will also show you how to combine FEGLI coverage with other federal benefits so you can maximize all your benefits.