FEGLI offers two types of coverage: Basic and Optional. FEGLI coverage is the same regardless of whether the employee is covered by CSRS (the Civil Service Retirement System), or FERS (Federal Employees Retirement System). The employee is entitled to Basic FEGLI coverage as soon as they start work. However, the employee may choose to add one or more of the optional coverage options.
You can choose the type and amount you want for optional coverage and federal retirement benefits. Your needs will determine which option you choose. As you get older and your family’s circumstances change, your choices may change. Part-time and full-time federal employees are eligible to participate in FEGLI. However, the plan is optional and can be cancelled if there is a cheaper option or if you don’t need insurance.
The Basic Insurance Policy
FEGLI Basic Insurance Coverage is issued to the employee immediately upon service commences, unless the employee chooses not to. It acts as immediate protection for beneficiaries in the event that the employee dies.
* This federal employee life insurance policy covers the sum of an employee’s annual base pay plus $2000.
* The employee pays two-thirds of the cost of this insurance, while the government pays the remainder.
U.S. U.S. The employee pays for any Optional Insurance they choose.
The Optional Insurance Coverage
FEGLI offers three options for federal employee life insurance. These plans are available in addition to the Basic plan. To be eligible for these optional plans, you must first have basic insurance. This coverage is cost-based and payable only by you, without any government contribution.
These are the three types you can choose from for optional coverage:
Option A – Standard Optional Insurance
* The coverage is for a total amount of $10,000
* Costs are determined based on your age. There are age groups that define the cost to each participant.
Option B – Additional Optional insurance
* Option A provides a fixed amount coverage. Option B offers five multiples of your annual salary (after being multiplied by the next nearest $1000).
* This insurance policy’s cost also depends on the age brackets (35, 40, 45 and 50), 55, 60, 65 and 70.
Option B coverage is attractive, especially for younger employees. You should compare FEGLI costs with other private term life insurance options as you get older. If you’re over 50 or you plan to insure your family with life insurance, you can save a lot of money. A FEGLI Calculator is highly recommended. It can provide a detailed description of your FEGLI rates compared with other term life insurance options.
Option C – Family Optional insurance
* This group term insurance policy provides coverage for your entire family, i.e. Your spouse and dependent children. You can choose from one, 2, 3, 4, 4 or 5 coverages.
* Multiples equal $5000 for your spouse, and $2,500 each for eligible children. If you select a multiple of 4, for example, you will receive $20,000 in the event that your spouse dies and $10,000 in any case in which your child is killed.
* This insurance policy is priced based on your age and not the age of your family members. Allocating total costs is done using the same age brackets.
Other than Basic FEGLI, FEGLI Option A and FEGLI Option C, FEGLI Option A and FEGLI Option C are offered to eligible federal and postal workers. These additional benefits include the Accidental Death & Dismemberment Benefit, Basic Live Extra Benefit, and many others.
Your coverage for Basic and Option A federal employee insurance will be doubled in the event of your death or dismemberment. If you are less than 35 years old, the Basic Life Additional Benefit doubles the amount of your basic insurance. The benefit drops by 10% each year and ends at 45.