OVERVIEW
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 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.
BASIC FEGLI
Most new employees are automatically enrolled unless they opt out.
- Coverage = Your annual base salary, rounded up to the nearest $1,000, plus $2,000
- Premiums are shared — the government pays 1/3, you pay 2/3
- As your salary increases, so does your Basic coverage — and so do your premiums.
Additional Option A
- Adds $10,000 of additional life insurance coverage
- Flat rate premium based on your age, increasing every 5 years after age 35
- Often used for small extra coverage or burial/final expense planning
- Note: This option does not increase with your salary — it stays fixed at $10,000.
Additional Option B and C
Option B – Additional Coverage
- Allows you to elect coverage of 1 to 5 times your annual basic salary
- Premiums are age-based and increase every 5 years starting at age 45
- Premiums can become very expensive in retirement
- At retirement, you can choose to:
- Maintain full coverage (higher cost)
Reduce coverage (phased out after age 65)
Cancel coverage entirely
- Maintain full coverage (higher cost)
- At retirement, you can choose to:
- This is the most flexible and customizable option, but also the most costly long-term.
Option C – Family Coverage
- Provides life insurance for your spouse and eligible dependent children
- Spouse: $5,000 per unit (up to 5 units = $25,000 max)
- Each Child: $2,500 per unit (up to 5 units = $12,500 max per child)
- Premium is based on your age (not your spouse’s) and the number of coverage units
- Coverage ends when your child is no longer eligible (usually age 22)
- Option C is a low-cost way to protect your family, but premiums still rise every 5 years.
Which FEGLI Option Should You Choose?
Choosing the right combination depends on your:
Family needs
Financial goals
Budget now — and in retirement