Federal Employees’ Group Life Insurance (FEGLI)

Understanding The Federal Employees’ Group Life Insurance (FEGLI) Program

FEGLI is a group life insurance plan available to full-time federal employees, and part-time federal and postal employees who have worked in their position for more than a year. The plan is administered by the Office of Personnel Management (OPM) and participation is voluntary. FEGLI is the largest life insurance program in the world.

FEGLI offers term life insurance only, therefore there is no cash value or paid-up value option that’s available with permanent policies. 

FEGLI offers Basic life insurance plus three additional options. Employees are automatically enrolled in the Basic plan unless they elect otherwise. The Basic life insurance plan provides coverage equal to the employee’s salary rounded up the nearest $1,000 plus an additional $2,000. The cost for the coverage is split between the employee (who pays 2/3) and the government (which pays 1/3). The US Postal Service pays the entire cost of Basic for its employees. 

An employee must have Basic life insurance in order to participate in any of the three additional options, and the employee covers the full cost for any optional coverage. 

  • Option A: The employee can increase his/her life insurance coverage by $10,000. 
  • Option B: The employee can increase his/her life insurance coverage by an amount equal to 1-5 times his/her basic annual pay. 
  • Option C: The employee can elect to purchase life insurance coverage for his/her spouse and eligible children and possibly grandchildren.

The cost of insurance policies is based primarily on age and amount of coverage. 

If you’d like help determining if FEGLI is a smart option for you, your family, and your short- and long-term goals, please contact us at My Federal Plan. We will happily review options with you and determine the best approach to plan for life insurance.

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