Federal Employee Group Life Insurance

The Federal Government established the Federal Employees’ Group Life Insurance (FEGLI) Program on August 29, 1954. It is the largest group life insurance program in the world, covering over 4 million Federal employees and retirees, as well as many of their family members.

Most employees are eligible for FEGLI coverage. FEGLI provides group term life insurance. As such, it does not build up any cash value or paid-up value. It consists of Basic life insurance coverage and three options. In most cases, if you are a new Federal employee, you are automatically covered by Basic life insurance and your payroll office deducts premiums from your paycheck unless you waive the coverage. In addition to the Basic, there are three forms of Optional insurance you can elect. You must have Basic insurance in order to elect any of the options. Unlike Basic, enrollment in Optional insurance is not automatic — you must take action to elect the options.

BASIC INSURANCE

Basic insurance provides term life insurance at group rates. If you are eligible, you are automatically covered under Basic insurance, unless you waive this coverage.Your Basic Insurance Amount (BIA) is equal to the greater of (a) your salary rounded up to the next $1,000 plus $2,000, or (b) $10,000.

The cost of Basic insurance is shared between you and the Government. You pay two-thirds of the total cost and the Government pays one-third. Your age does not affect the cost of Basic insurance.

OPTIONAL INSURANCE

Option A

Option A will provide the beneficiary $10,000 in the event of the federal employee’s death.

Age GroupBiweeklyMonthly
Under 35$0.20$0.43
35–39$0.30$0.65
40–44$0.40$0.87
45–49$0.70$1.52
50–54$1.10$2.38
55–59$2.00$4.33
60+$6.00$13.00

Option B – Additional

 You may elect Option B insurance in an amount equal to one, two, three, four or five times your annual basic pay (after rounding up to the next even $1,000).

The cost of Option B insurance depends on your age. When you have a birthday that moves you to another age group, you will begin paying the premiums for the new age group in the first pay period that starts after your birthday. The premiums increase depending on your age group, as shown in the following table:

Age GroupBiweekly withholding ($)
per $1,000 of insurance
Monthly withholding ($)
per $1,000 of insurance
Under age 350.020.043
Age 35 through 390.030.065
Age 40 through 440.040.087
Age 45 through 490.070.152
Age 50 through 540.110.238
Age 55 through 590.200.433
Age 60 through 640.440.953
Age 65 through 690.541.170
Age 70 through 740.962.080
Age 75 through 791.803.900
Age 80 and Over2.645.720

Option C – Family Insurance

Option C provides life insurance for your spouse and eligible dependent children. When you elect Option C coverage, all of your eligible family members are automatically covered.
 
Unlike in the past, you may now choose one, two, three, four or five multiples of coverage. Each multiple is equal to $5,000.00 for your spouse, and $2,500.00 for each of your eligible dependent children. You, as the insured enrollee, receive the life insurance payment when an eligible family member dies.
 

The cost for Option C insurance remains the same regardless of the number of eligible dependent children. Dependent children must be unmarried and under age 22, or if 22 or older, incapable of self-support. Dependent children include your children, adopted children, foster children and stepchildren (if they are living with you in a regular parent-child relationship), and recognized natural children. Stillborn children are not covered. Grandchildren are covered only if they meet the requirements of foster children.

The cost of Option C insurance depends on your age, and the number of multiples you elect. When you have a birthday that moves you to another age group, you will begin paying the premiums for the new age group in the first pay period that starts after your birthday.

The premiums increase depending on your age group, as shown in the following table:

Age GroupBiweekly withholding ($)
per multiple
Monthly withholding ($)
per multiple
Under age 350.220.48
Age 35 through 390.270.59
Age 40 through 440.410.89
Age 45 through 490.591.28
Age 50 through 540.921.99
Age 55 through 591.483.21
Age 60 through 642.705.85
Age 65 through 693.146.80
Age 70 through 743.838.30
Age 75 through 795.2611.40
Age 80 & Over7.2015.60
 

The FEGLI Calculator

The FEGLI Calculator allows you to determine the face value of various combinations of FEGLI coverage; calculate premiums for the various combinations of coverage; see how choosing different Options can change the amount of life insurance and the premium withholdings; and see how the life insurance carried into retirement will change over time.
 
Contact MyFedRetirementWerks to see which coverage is right for you and your family.

 

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