Federal Employee Group Life Insurance (FEGLI) is offered to all incoming federal employees and provides extremely competitive pricing for traditional death benefit protection to young employees. In addition, no underwriting is required. There are two types of FEGLI: Basic and Optional.

Basic

This option offers your salary rounded up to the next even $1,000, plus $2,000. It includes “Accidental Death and Dismemberment” coverage at no additional cost plus “Extra Benefit” coverage for enrollees under age 45. The Extra Benefit doubles the amount payable for Basic if you are age 35 or younger when you die. This extra amount decreases each year by 10 % until there is no “extra” coverage payable if you die at age 45 or older.

Optional

There are three types of Optional insurance:

• Option A – Standard: $10,000 of life insurance
• Option B – Additional: you choose from one to five times your salary
• Option C – Family: coverage on your spouse and eligible dependent children

If you are employed in a “FEGLI-eligible” position, you are automatically covered the first day you are in a pay-and-duty status with your employing agency for basic coverage. You may also purchase additional coverage or elect to cover your spouse and eligible dependent children under this program. If you elect to waive basic coverage, you may not elect optional coverage.

Starting around age 45, the pricing of your optional coverage starts to increase. The cost continues to increase exponentially over the latter years of your career and even into retirement. There are more innovative and more affordable alternatives that can simultaneously protect you, your retirement, and your family!

To learn more about FEGLI in retirement, plus other information to help you make a decision, download the latest issue of our free magazine.